Vienna housing in the crisis: Completions could collapse by 80%!
Vienna housing in the crisis: Completions could collapse by 80%!
The current situation in Austrian housing is alarming. According to the recent reports, the number of completions of residential buildings could decrease by up to 80 percent in Vienna by 2026. Above all, the real estate industry warns of the consequences of this development and demands comprehensive changes to secure the living space in the capital.
A new study by Exploreal GmbH shows that a national decline in new buildings is expected by ten percent for 2024. Even more worrying is the forecast for 2025, in which a decline of 38 percent is forecast compared to 2023. Vienna is particularly affected, where the number of completed apartments could go back from 17,000 in 2023 to 15,300 in the coming year.
challenges in residential construction
Commercial residential construction is under considerable pressure. According to Michael Pisecky, the specialist group chairman of the real estate and wealthy hill, the situation is "extremely worrying". He criticizes that commercial residential construction continues to block more than supported, which endangers the entire range of housing in Vienna and the renovation rate. Pisecky urgently demands better framework conditions from politics to enable a "renovation and construction turbo".
The construction increasingly focuses on the city's outer districts. In the 22nd district (Donaustadt) there are the highest construction activity with 18.55 units completed per 1,000 inhabitants. On the other hand, weak activities are evident in the inner districts, which indicates neglecting interior development.
regulations and climate goals
The numerous legal requirements are mentioned as one of the main causes for the hinge inner development. Hans Jörg Ulreich, a well -known property developer, explains that high construction costs and excessive regulations such as the remediation and renovation measures that have become necessary for the new parking space in the new building prevent. These obstacles also endanger the achievement of the climate goals because thermal retrofitting in the city is necessary.
Nicole Fürntrath, property manager, emphasizes that property management companies are important multipliers for the implementation of renovations and switching to non-fossil heating systems. It also calls for adjustments to the right of residence as well as changes in the building code and space dedication to enable both renovations and affordable new housing.
Pisecky makes clear demands on the city and federal government. He emphasizes that the tenancy law and the Housing Property Act have residential needs that affect the toleration by tenants and the simplified resolution. A reliable calculation of future income is essential to realize investments.
The reduction in construction costs through reforms, as well as the acceleration and debureaucratization of approval procedures are mentioned as central measures to improve the residential building situation. Pisecky warns that renovations and construction activities will fail if the economic framework is not correct. His urgent appeal to politics is: "A sufficient range of living space in Vienna must be created and maintained". The necessary framework conditions were the responsibility of the government.