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New schemes in Austria for tenants and developers
The state government in Styria has decided to introduce three initiatives which aim to contribute to budget-friendly accommodation and construction.
PUBLISHED 19.07.2023
Amidst the increase in interest rates and construction costs, the state government in Styria has decided to provide support for real estate developers and tenants. Currently, the net rent for a subsidized 70 sq. m apartment has grown by 75% from EUR 364 in 2021 to EUR 365.
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According to Governor Christopher Drexler (ÖVP) and his deputy, Finance Minister Anton Lang (SPÖ), multi-storey structure subsidies will be changed. The scheme will be switched to a combination of increased subsidies and low-interest state loans. This way, the cost of financing new apartments and rental prices will decrease. Each year about 1,400 units will be affected. The income restrictions will also be reformed. The initiative will cost approximately EUR 100M in 2023 and 2024, as stated by Finance Minister Anton Lang (SPÖ).
The government in Styria will also launch a housing bonus, which is a subsidy contribution for existing residences and for new ones to be erected in the 2015 to 2023 construction schemes. Therefore, the net rent for an apartment in the example above should drop back to EUR 431.
The government in Styria will also launch a housing bonus, which is a subsidy contribution for existing residences and for new ones to be erected in the 2015 to 2023 construction schemes. Therefore, the net rent for an apartment in the example above should drop back to EUR 431.
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The living bonus will cover rents from October without any application and is for now limited to late 2024. Nevertheless, it can be prolonged, for instance, if interest rates remain high. The incentive is expected to cost EUR 22M for 2023 and 2024.
The third reform is more housing support, according to Social Counselor Doris Kampus (SPÖ). From August 1st, this will be increased by 20% and the income limits will be changed. By the end of 2023, the additional costs are set to constitute about EUR 3.5M.
According to Governor Christopher Drexler (ÖVP), the new measures aim to contribute to budget-friendly accommodation and boost the construction industry. This package is the second big one after the introduction of the housing renovation campaign in 2022.
The third reform is more housing support, according to Social Counselor Doris Kampus (SPÖ). From August 1st, this will be increased by 20% and the income limits will be changed. By the end of 2023, the additional costs are set to constitute about EUR 3.5M.
According to Governor Christopher Drexler (ÖVP), the new measures aim to contribute to budget-friendly accommodation and boost the construction industry. This package is the second big one after the introduction of the housing renovation campaign in 2022.
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