At the COM.BAU

Slight upturn for the badly shaken construction industry

Young craftsmen show off their skills at "com:bau" in Dornbirn.

(Bild: Landesinnung Bau Vorarlberg)

Restrictive credit requirements, high interest rates, rising personnel costs and high energy and material prices have taken their toll on the Vorarlberg construction industry. New framework conditions should now bring improvement.

The construction trade fair "com:bau" is open until Sunday at the Dornbirn exhibition center. On 16,000 square meters, around 160 exhibitors provide information on the latest living and building trends. On the opening day, those responsible for the construction guild took the opportunity to talk about the development of their industry. After the challenges of recent years, improvement is now in sight. The state's new housing subsidy, lower interest rates on loans and the abolition of the KIM regulation in July would ensure better conditions for house builders.

It is not yet entirely clear what the new lending rules will look like. "It must not happen that new regulations are introduced through the back door. This would slow down the slowly emerging recovery before it has even really begun," warns Johannes Wilhelm, Chairman of the Construction Guild of the Vorarlberg Chamber of Commerce.

Negative mood in survey
Despite the improved framework conditions, those responsible in construction companies are not particularly confident. An internal survey by the Chamber of Commerce revealed that the mood in the 235 Vorarlberg companies surveyed has been negative since 2022. No significant changes are expected until 2026. The majority of respondents anticipate an economic downturn of up to minus 30 percent this year. In the ancillary building trade, a drop of as much as 40 percent is expected.

"Many factors are outside our sphere of influence, which makes it all the more important to find the levers that can be turned," emphasizes Johannes Wilhelm. Specifically, he is concerned with lengthy and complicated procedures as well as excessive regulations, all of which would have a significant impact on the price that house builders would ultimately have to pay.

Questioning the sense - saving costs
In addition to "clearing out the legal requirements", the aim is also to closely examine where it is possible to deviate from standards without compromising on safety and quality. "The reduction of certain standards and requirements is already being implemented in non-profit housing construction in order to realize financially affordable apartments. Why not do the same for private housing?" asks Günther Amann, Chairman of the Property and Real Estate Trustee Group. While it is permissible to do without parking spaces, elevators and design councils in the state's "Wohnen 550" project, all of this is mandatory for private construction projects. "Given the right framework conditions, private developers could also contribute to making affordable housing possible," he is convinced.