The turning point in residential construction: KIM regulation falls-politics must act now!

The turning point in residential construction: KIM regulation falls-politics must act now!

The Austrian construction industry breaks up: The end of the KIM Ordinance, which has been imposed on strict credit transfer guidelines since its introduction in 2022, is celebrated as a crucial step in the right direction. Torsten Kreft, Managing Director of Hagebau Austria, described the cancellation as an important impulse against the dramatic decline in residential construction. These restrictive guidelines were particularly disabled young families and sole earners, which contributed to the current residential building crisis. The KIM Ordinance asked for an equity proof of 20 percent of the purchase price and stated that the monthly credit rate was not allowed to exceed 40 percent of the household income. Up to every second applicant remained due to this regulation without approval for residential loans, such as ots.at

But it is not enough to remove these hurdles. The industry now immediately demands further measures to counteract the impending lack of housing and increasing unemployment in the construction industry. "We now need more new buildings," said Kreft and emphasizes that the next federal government must act immediately after taking office. According to Gerald Gollenz, chairman of the WKO specialist association of the real estate and wealth lacer, the number of freely financed condominiums could decrease from around 17,380 to only 1,793 if no countermeasures are taken. The newly built rental apartments are also on the brink and could fall from 7,350 to only 1,350 units, warns Gollenz. However, positive signals come from the credit industry: The relieved possibilities of residential finance from 2025 could be seen as a crucial incentive for the acquisition of residential property and the revival of residential construction, according to tga.at .

A need for action is therefore given to secure the perspectives of the construction industry and to combat the lack of living space in Austria. The coming months will show whether the measures that are now on the agenda can be implemented quickly and effectively to counteract an impending crisis in housing.