KIM regulation falls: A glimmer of hope for Austria's construction industry!

KIM regulation falls: A glimmer of hope for Austria's construction industry!

The Austrian construction industry breathes: The financial market stability committee (FMSG) has decided to expire the KIM regulation, which imposed strict regulations on real estate loans. Renate Scheikelbauer-Schuster, chairwoman of the federal division trade and craft in the Austria Chamber of Commerce (WKÖ), describes this decision as a "good news" for the construction industry and adjacent sectors that have been suffering from difficult conditions for some time. From 2025, this step will probably counteract the valley sole in residential construction and facilitate the acquisition of home ownership, especially for single -family houses and condominiums. The pressure on the real estate sector is to be reduced, such as ots.at reported .

economic downturn and growth impulses

Despite this positive message, the sector still faces considerable challenges. The latest reports show that the trade and craft has slipped deeper into the recession, with a decline in sales of 7.5 percent in the first half of 2024. Investment -related industries, such as metal technology and construction industry, are particularly affected with declines of up to 12.3 percent. Christina Enichlmair from SME Research Austria emphasizes that the order situation has also deteriorated dramatically in the expansion industry. Only a few companies rake with sales increases for the coming quarter, such as wko.at reported .

Renate Scheikelbauer-Schuster therefore demands five concrete measures to boost the economy: This includes targeted use of housing subsidies, incentives to improve tax depreciation, as well as a simplification in lending. In addition, a reduction in bureaucratic hurdles is required, which could relieve the companies in the trade and craft by around 430 million euros per year. In order to boost the economy again, a massive exertion is required to stop the current downward spiral.