2023-08-23 05:32:46
Vienna (OTS) – “It is extremely frustrating that since 2009 real estate prices for residential and business premises in Austria have significantly exceeded the average net income development. As a result, living space and commercial space are becoming unaffordable for many, especially in a prosperous country like Austria,” said Matthias Krenn, Federal Chairman of the Free Economy.
“The rising real estate prices bring unbearable burdens. From buying to renting business premises, cost is becoming a formidable obstacle, especially for start-ups and small businesses who are struggling enough as it is,” explains Krenn. He adds: “The massive housing costs are also making workers’ mobility freeze. This situation destroys the ability for companies to find and retain talent from different regions. In the villages and even in smaller towns, the vacancy rate is increasing dramatically”.
He also criticizes: “A large part of the income goes to the excessive housing costs, which leads to less financial resources for more comprehensive needs. With declining purchasing power, demand for products and services implodes, which has a direct and brutal impact on corporate sales.”
“This is an unmistakable sign of a deep-seated economic injustice that is acutely problematic and must be addressed immediately. It is an unsustainable situation and a serious problem that should not be ignored,” emphasizes Krenn, suggesting: “A rent freeze is essential. The annual rent increase should be temporarily limited to two to three percent and the adjustment of the category and benchmark rents to inflation should be ground in by 2026,” concludes Krenn.
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