I would be very happy to see the supervisory authorities critically review their regulations. A short while ago, we mentioned the attractive Delta between apartment and investment property prices. The supply of available apartments is declining steadily, but the demand for additional housing is there and it is high. Actually, a perfect situation for existing properties? Tüchler: That is, simply speaking, a cost issue: Construction and mainte-
© Roland Rudolph
It is virtually impossible for a developer to start construction today given the current cost situation. Most projects are already negative when the developer makes an ini- tial calculation, and even if an investment is economically feasible, the developer can’t arrange for financing in most cases.
Schmidt: As has already been said, I am very optimistic and see the housing market further along on a recovery course. I have numerous offers for apartments in our buildings, which makes me very confident. We also recently evaluated the buyers’ financing situation for a property and identified a significant decline in the number of mortgages. In other words, buyers are relying more on equity. There are plenty of people who want to buy and can do this independent of bank financing. This customer base also includes investment property buyers, for example private foundations. But somehow the impulse is missing to buy NOW, despite the fact that now is probably the best time to locate good properties. When everyone starts buying again, it will be too late. It is virtually impossible for a developer to start construction today given the current cost situation. - Gerhard Tüchler
nance, renovation and improvements have hardly become less expensive, personnel costs have increased, and financing costs have multiplied. And that can’t be offset by the decline in the purchase prices for investment properties.
olph
Vienna | 2024
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