Single-family homes: orders have fallen by a third

Business

In the Salzburg construction industry, the enormous decline in the construction of single-family homes is now leading to a massive downward trend. The Chamber of Commerce complains about this. While civil engineering is still doing very well, the development in the building construction sector is “worrying”. The reasons are high construction costs and high loan interest rates.

The construction volume in building construction in Salzburg continued to rise between 2018 and 2022 and reached a record level of two billion euros last year. According to the Chamber of Commerce, things have been going downhill since then – this is entirely due to the building construction sector. And the reason for this lies in a massive decline in the construction of new single-family homes. The industry expects orders to fall by a third in 2023. In civil engineering, however, there are still many orders due to public projects.

Loans: Construction guild master calls for easing

Because of the high construction costs and significantly increased loan interest rates, there is an urgent need to relax the lending guidelines, demands the guild master of the Salzburg construction industry, Peter Dertnig. But there is also a demand for a “de-bureaucratization of housing subsidies”. Housing State Councilor Martin Zauner (FPÖ) once again emphasizes that he wants to put housing subsidies back on a new footing and also simplify building law. Excessive regulations are responsible for the fact that building in Salzburg is currently ten to 15 percent more expensive than elsewhere, admits Zauner and promises improvement here.

2023-12-09 07:41:14
#Singlefamily #homes #orders #fallen

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