KIM Ordinance becomes history: residential property for Lower Austrians again!

KIM Ordinance becomes history: residential property for Lower Austrians again!

A crucial step for prospective house builders in Austria has now been announced: the KIM Ordinance, which has been imposed on banks since August 2022 for the allocation of residential loans, will expire in mid-2025. The reason: The financial market stability committee has found that there are currently no systemic risks regarding the allocation of living credit, and this is a positive turn for the banking sector. This regulation previously represented a high hurdle for the acquisition of residential property and led to a decline in new housing. Christiane Teschl-Hofmeister, the state chairwoman of the Lower Austria, described the expiry of the regulation as good news for employees in Lower Austria, since it enables them to realize their dream of their own home, and at the same time secure jobs in the construction industry, such as ots.at reported.

The tightening of the lending led to better capitalization of banks and an impressive increase in sustainable loans - from 12% in the first half of 2022 to 84% in the first half of 2024 - but the pressure on house builders remained. The tightened rules were always criticized by Governor Johanna Mikl-Leitner. With the upcoming expiry of the KIM regulation, lending is now relaxed, which also feeds the hope of an upswing in the housing construction. Since the introduction, the NÖAAB has requested improvements that have finally been heard, which was confirmed by noen.at

With this realignment, many could finally afford their own four walls, which is of enormous importance not only for future homeowners, but also for the construction industry. If you are looking for your own home, you should keep an eye on this development.