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Key points of the new package:
- Housing subsidies: from sprawling development to multi-story housing
- From home construction to an affordable mix of rental and owner-occupied apartments
- From the effect of bringing a few to added value for all Salzburg residents
State of salzburg
In the picture (from left): Markus Sturm (non-profit deputy chairman), Günther Leitgöb (spokesperson for the professional group of commercial property developers), LR Andrea Klambauer, Stephan Gröger (president of the Austrian association of building associations without for profit, Salzburg regional group)
Klambauer: “Construction costs increased enormously”
Regional Councilor Andrea Klambauer emphasized on Wednesday: “Due to the record years in construction, companies are desperately looking for executing companies to be able to process orders. Construction projects have already been postponed or not implemented because nonprofit developers have not received any offers to implement them. The overheated construction industry dictates prices and terms. This is evident in the increase in construction costs. Until 2014, construction costs were below 2,000 euros per square meter of living space and developed in line with inflation. They have increased by a quarter since 2015, so far 2,500 euros. “
Demand for affordable and affordable rental apartments
Construction of 648 new apartments in the nonprofit rental housing sector began in 2019, but nonprofit developers can hardly build more. “We are in a situation where small adaptations are no longer enough. We have decided to significantly increase real estate financing, that is, financing that is normally given to non-profit real estate developers to build subsidized rental apartments. Our package of measures is an act of force to continue building apartments in the future and create a balance between rental and owner-occupied apartments on the market, ”said Klambauer.
State of salzburg
25 million euros in the incentive package
An incentive package was created together with stakeholders to give a clear boost to residential construction. The total volume of the increase in financing rates is around 25 million euros.
The key points at a glance:
- In multi-storey residential buildings, the subsidy per bankable condominium increases significantly by an average of 8,000 euros to 39,000 euros
- Builders receive a loan that is more than 40 percent higher for rental apartments to secure financing.
- Grants that do not need to be repaid are increased by 50 percent. This corresponds to an average increase of 25,000 euros per apartment.
At least 700 subsidized rental apartments per year
There is an ambitious goal behind the massive funding: we want to build at least 700 subsidized rental flats per year, for which 58 million euros will be budgeted from 2021, a significant increase because: in 2018 45 million euros were available , 40 million euros were used up. Even more apartments would be desirable, but it makes no sense to build castles in the sky if the projects can no longer be built in the end because the companies were not available, ”says Klambauer.
The purchase promotion amounts to 40,000 euros
In addition to meeting their housing needs, many people’s goal of living in their own property and thus creating a forecast for retirement is also taken into account. The purchase subsidy increases to 40,000 euros for the purchase of a flat and ensures a good combination of rent and property.
Increased sales promotion
The average purchase subsidy in 2019 is around 31,000 euros. This amount has now increased to about 40,000 euros. A purchase subsidy is granted to those who have their main residence in the apartment, who meet the income limits and who are below the maximum. The price per square meter is maintained. “In 2019, only 57 condos were financed in the city. We will now increase the upper limit for purchasing subsidies across the federal state by 20 percent, so there is a full subsidy of up to 4,080 euros per square meter in Lungau and up to 5,040 euros per square meter in the city of Salzburg to cover increased construction and land costs. To be tight, there is also a strict rule with decreasing funds. We are not promoting the purchase of luxury apartments, but we do not want to leave the city exclusively to the heirs, the rich, the real estate speculators or the Airbnb rentals, ”says Klambauer.
Realignment of housing subsidies
The realignment and reallocation of housing subsidies have given room for maneuver:
- Rising housing subsidy expenditures stabilized with the rent reduction program. Rents for more than 10,000 apartments have been permanently reduced by an average of 73 cents per square meter.
- Funding that achieved pure deadweight effects was canceled.
- For the first time this year, the province of Salzburg has set aside ten million euros for the purchase of land in order to grant construction rights to non-profit property developers. The EU legal review is still ongoing.
“For me, the housing allowance is the lever to create affordable rental apartments for many people. There are currently more than 35,000 subsidized rental apartments in Salzburg with permanently affordable rents. But the population is growing, ”emphasizes State Councilor Klambauer.
Praise and criticism for the reform of housing subsidies
“First of all, it is about citizens benefiting from budget increases and reforms, especially in the housing sector. And not from construction companies,” is the criticism of the leader of the Salzburg FPÖ, Marlene Svazek .
The head of the Salzburg SPÖ, David Egger, is equally critical of the housing subsidy reform: “The housing subsidy repair is a justified adjustment of the subsidy rates to market conditions, but a surrender to the need for finally create more affordable housing on a large scale. ” House of Labor President Peter Eder is in the same direction: “It is gratifying that Regional Councilor Klambauer is finally implementing AK’s demand for higher subsidies for rental apartments after a long period of standstill. But that alone will not be enough and it is too late. ” He sees reducing the target from 900 new rental apartments to 700 per year as a “political bankruptcy declaration.”
The president of the Salzburg Chamber of Commerce, Peter Buchmüller, sees the reform as positive: “The increase in volume by 25 million euros creates the necessary margin for construction and life in Salzburg to remain affordable.”
Housing: Non-Profit for a Quick Economic Stimulus Package
Housing is getting more and more expensive and the corona crisis is having an impact on the residential construction sector, nonprofits are raising the alarm. The federal president of ARGE Eigenheim and the supervisory board of the non-profit construction associations (GBV), Christian Struber, emphasized on Wednesday at a press conference in Salzburg how important is the “rapid introduction of a stimulus package economical for residential construction. “
Topics such as climate protection and energy transition, digitization, life and old age or care, as well as modern work should be taken into account. “Measures in these areas must be financed with an additional investment premium, just like in other commercial ventures,” Struber demanded.
The demands of residential construction are increasingly diverse. In the fight against the rising price spiral, it is important to realize new buildings, create more living space for the life of “elderly” in accordance with the demographic development in Austria and renovate older residential complexes in a climate-friendly way. “We have to face these challenges,” Struber said.
(Source: SALZBURG24 / APA)
