Set to change this year

Demand for rental real estate is at a record high

Industry chairman expects more sales in the new year(Bild: APA/EVA MANHART)

Easier lending and falling prices in the new year should boost the Upper Austrian real estate market. More new builds are also set to be completed again. Find out here how major developers are reacting to the difficult financing situation and low demand for owner-occupied properties.

The real estate market has had a difficult few years. Due to high material and personnel costs as well as the KIM regulation, which made borrowing more difficult, the completion of new builds and sales figures fell dramatically.

KIM regulation soon to expire
But now the industry is sensing a breath of fresh air: "We started the new year with great hope. One of the many positive pieces of the mosaic is the expiry of the Credit Institutions Real Estate Financing Measures Ordinance, or KIM Ordinance for short," says Mario Zoidl, Chairman of the Real Estate and Property Trustee Section of the Upper Austrian Chamber of Commerce. The situation is not yet perfect, but it is significantly better than in previous years."

Upswing for new builds too
The situation is less rosy for new builds, but here too the chairman sees light at the end of the tunnel: "Things are still looking a bit bleak at the moment. But in the current quarter and in the fourth quarter of last year, there were and are positive developments here too," says Zoidl. "Many commercial property developers have brought projects onto the market despite adverse circumstances. They are responding with smaller, more affordable residential units."

Enormous demand
Landlords are pleased that property prices are still high and that the KIM regulation will not expire until the end of June: "Demand for rental properties is still at a record high. I have never experienced such strong demand as in the past two and a half years," says Zoidl.