End for KIM regulation

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Easier access to credit makes the dream of home ownership possible again for many.

(Bild: Pressefoto Scharinger/Daniel Scharinger)

The crisis years have left their mark on the domestic construction and real estate industry. The end of the KIM regulation and interest rate cuts bring hope - also for house builders.

The economic environment has not made it easy for domestic companies in the construction and real estate sector in recent years. Then there was the KIM regulation, which suddenly made it impossible for many young people to get a home builder's loan. Compared to the high property prices, equity and income were simply too low.

"Carinthia's real estate sector experienced a real rollercoaster ride last year," explains Paul Perkonig, Chamber of Commerce expert for real estate trustees. "Nevertheless, we are seeing the first positive signs of a turnaround." The reason for the cautious optimism is the expiry of the KIM regulation on the one hand and falling interest rates on the other. This means that young people once again have access to loans, which then cost less than a few years ago.

However, the real estate industry is hoping for further steps from politicians. "However, bold steps in deregulation are needed for a real upturn," emphasizes Perkonig. "The excessive regulations are still the biggest obstacle on the way to affordable housing." He points to Germany, where there are simplified building regulations for a certain type of building. "In the construction sector alone, companies have to comply with around 5,000 standards," says Perkonig. "Every unnecessary regulation ends up making housing more expensive for Carinthians."