KIM Ordinance: Crater in Wohnbau - 2025 on the way to the turn!

KIM Ordinance: Crater in Wohnbau - 2025 on the way to the turn!

Deutschland - The current situation in the construction industry is tense. In Austria, the strict rules of the credit institutions real estate financing measures regulation, or KIM regulation for short, ensure massive difficulties in receiving residential loans. An own average share of 20 percent and maximum credit rates of 40 percent of the budget net income were insurmountable hurdles for many potential buyers. This situation has led to a dramatic decline in residential construction: "In the high blossom we had a decline of about 70 percent in this segment," reports Alexander Kubin, base chairman of the banks in the Chamber of Commerce. The construction industry, in particular social housing, feels the consequences because people could not even receive loans for cooperative shares.

expectations for 2025

The KIM regulation expires in June next year and will not be extended, which arouses hopes for relaxation. Credit institutions expect an increase in housing loans in the coming year, especially since the interest rate landscape is expected to decrease. "Construction prices have risen to around 30 percent in recent years, with a slight mitigilation in 2024, but a decline in construction prices is not expected," explains Heino Zießnitz from the building analysis. The pessimistic assessment refers not only to Austria, but also to Germany, where more and more construction companies are getting into financial difficulties due to the high interest rates and prices. Building experts still expect stabilization from 2025, which is accompanied by a forecast increase in building volume by 1.9 percent.

The construction industry is faced with global challenges: rising energy costs, delivery bottlenecks and an acute shortage of skilled workers also strain the industry. The signals are mixed in the German construction industry. The contradiction between the ongoing demand for apartments and the immense cost increases remains. At a housing summit in September, defects in political support for housing became clear, and the traffic light coalition is increasingly facing criticism.