Expensive land causes problems for non-profit developers

This year’s St. Wolfganger Tage, an expert conference on non-profit housing, started on September 11. In view of the upcoming National Council election The exchange is the focus of demands for a new Federal Government260 participants were expected.

A topic that is discussed at the agenda is the shortage of Building land and the associated increase in Land prices these represent a key challenge for affordable housing, as the ARGE Home Ownership The conference will focus on the connection between Housing subsidies and land policy and present innovative solutions as to how affordable building land can lead to affordable housing and which instruments the states have at their disposal.

„Die Purpose limitation Each federal state can decide for itself how much housing subsidy will be used for this purpose,” emphasises the outgoing Federal Chairman of ARGE Eigenheim and Chairman of the Supervisory Board of the Austrian Association of Non-Profit Housing Associations (GBV), Christian Struber. The declining New building and the poor economic situation is causing problems for the industry.

“We need the construction activity, we as non-profit organizations have been running so that there is stable growth,” says Herwig Pernsteiner deputy federal chairman of the Association of Non-Profit Housing Associations. Isabella Stickler, chairwoman of the non-profit building, housing and settlement cooperative Alpenland St. Pölten, sees a light on the horizon: “Purchase inquiries are increasing, there will soon be an opportunity to buy again, as the ECB will be cutting interest rates in the fourth quarter.”

Christian Struber concluded: “In 2025, purchase prices may rise again if demand is strong. In addition, the KIM regulation (strict lending guidelines, editor’s note) will expire in 2025 unless it is extended.” This could make it easier to finance property.