Real estate market in Lower Austria: Important decline for new buildings!

Real estate market in Lower Austria: Important decline for new buildings!

In Lower Austria, alarming trends are emerging in housing construction. According to a press conference in the Immobilienkammer Lower Austria Chamber of Commerce, the number of apartments completed will drop drastically in 2025. Alexander Bosek, Managing Director of Exploreal, predicts a decline to only 3,700 apartments, which corresponds to a decrease of 40 percent compared to the previous year. These worrying figures are the result of price increases and regulatory challenges, in particular the expiring KIM regulation, which obliged borrowers to buy real estate to buy 20 percent of their own funds and to limit the monthly installments to a maximum of 40 percent of the income, such as https://noe.orf.at/stories/3294840/ reported.

With the impending loosening of this regulation, which comes into force in June, experts hope for a recovery of the market. Johannes Wild, chairman of the real estate group, describes the time after the years of crisis as an opportunity for normalization, but building must be cheaper again to boost the new building. The average price of a 71 square meter apartment in the region is currently 347,000 euros, an increase of 4 percent compared to the previous year. Wild calls for a fundamental simplification of the complicated building regulations to promote construction activity, as also reports https://www.wko.at/noe/news/wie-baut-niederoesterreich-2025-ist-der-krise-in

more construction activities in the future?

The expectations for residential construction in the coming years are split. In 2026, the new buildings could drop to 3,400 units, which would further tighten the already worrying developments. Wild emphasizes that innovative construction and renovation strategies as well as powerful subsidies are urgently required to ensure living space in Lower Austria in the long term. Further attention is paid to the non -profit developers who play an important role with 55 percent of the construction work, while the commercial real estate industry also decisively contributes to living space supply at 45 percent. According to the current study data, a total of around 820 projects with around 20,000 residential units are in the planning phase.

Despite the difficulties, there are bright spots for the industry. The decline in the KIM Ordinance could lead to more young families entering property, which is considered a glimmer of hope. These developments are crucial to revive the market that has been stagnating for years. The time will show whether the experts' forecasts will actually arrive to stabilize the market.