The upswing in residential construction: Credit galvanizers could soon fall!

The upswing in residential construction: Credit galvanizers could soon fall!

The real estate industry in Austria breathes up: The strict credit girting rules that came into force two years ago are to expire in mid -2025. This could lead to a strong upswing in residential construction after the new loan allocation had recently declined due to the strict requirements. Gerald Gollenz, spokesman for the industry, emphasizes that many potential borrowers have hesitated in recent years due to the high requirements, in particular maximum loan terms and own funds. Under these circumstances, there could have been a massive slump in the new building area in 2025, as Gollenz said, and the new regulation could now open the doors to new homes, such as

According to the financial market stability committee (FMSG), the KIM regulation has been effective and has reduced the number of unusual residential loans, but the banking system currently has no systemic risks, which makes the end of the strict regulations more than gratifying. In addition, bankers like Martin Schaller from Raiffeisen Landesbank hope that the banks continue to grant loans responsibly, regardless of the KIM-VO. Certain standards should also be maintained after the regulation has expired, such as compliance with an own average rate of at least 20 percent and a maximum repayment rate of 40 percent of the net income, according to