This had fallen in July 2023. The Association of Real Estate and Asset Trustees in the Chamber of Commerce (WKÖ) called for “the immediate withdrawal of the ordering principle for rental contracts” in a press conference on Wednesday. Chairman Gerald Gollenz justified this with the depressed real estate market. He hopes for new political constellations following the National Council elections.
The industry has been struggling with the downturn in the housing market for some time. The ECB’s interest rate hike brought the construction boom in Austria to an abrupt end last year, and the effects are being felt by many real estate companies. The trade association has therefore formulated five demands to help the industry get back on its feet.
In addition to the reintroduction of broker commissions for tenants, this also includes better conditions for renovations. In addition, building standards should be reviewed. For example, the parking space requirements in Vienna would lead to the construction of many expensive underground car parks, even though many residents do not own a car.
Criticism of financial supervision
The real estate trade association once once more criticized the stricter credit rules of the Financial Market Authority (FMA). The banks are not making full use of the exceptional quotas because this is associated with bureaucracy. It is easier for the banks to refuse a loan, especially since the banks themselves receive four percent interest from the ECB.
According to the Chamber of Commerce, the fact that the default rate for commercial real estate loans is currently rising is also linked to the limited lending to private individuals. Because private property buyers are not able to obtain loans, many property developers are currently unable to sell the apartments they have built and are therefore under pressure.
