The government is investing a billion euros in housing construction

Today, at a major construction site in Vienna, Chancellor Karl Nehammer and Vice Chancellor Werner Kogler, together with the chairmen of the non-profit building associations (Klaus Baringer and Herwig Pernsteiner), explained how the housing market should be revived due to high inflation and high interest rates and thus lower demand. After much back and forth and calls from the social partners, the following package is now available.

In addition to the planned apartments, 10,000 non-profit rental apartments and 10,000 rent-to-own and condominiums are to be built. To this end, money is to be made available for the renovation of 5,000 existing apartments. For the time being, the government leaders are not saying how long this applies to.

Statement from Chancellor Karl Nehammer (ÖVP):

For the first purchase of property, additional costs such as the land register entry fee and the lien registration fee are waived up to a purchase price of 500,000 euros. That saves up to 11,500 euros.

Home loan up to 200,000 euros

In principle, the acquisition of property should also be made easier during this period of high interest rates. Accordingly, housing loans for up to 200,000 euros should be made available through the states with a fixed interest rate of 1.5 percent.

Statement from Vice Chancellor Werner Kogler (Greens):

In this way, the government is making a contribution to making apartments more affordable and at the same time increasing the ownership rate from the current 48 percent to 60 percent in 2030. At the moment this often fails due to financing.

The government package, which costs around a billion euros but generates five times as much added value, also helps to secure 40,000 jobs in the construction industry and also makes ecological sense, said Kogler, pointing to 5,000 renovations that are labor-intensive and help existing ones to renew.

On Wednesday, the government plans to announce further details about the housing package, including details about a reactivation of the craftsmen’s bonus.