Carinthia's real estate market: Construction costs press and prices!

Carinthia's real estate market: Construction costs press and prices!

In Carinthia there is currently a remarkable trend towards increasing demand in the real estate sector. The experts have been reporting since the beginning of the year: on the inside of a noticeable upswing in the industry. Paul Perkonig, specialist group chairman of the real estate and wealth-tax loan, emphasizes that the low interest rate level favors the purchase of residential property. As a result, the demand for ownership, especially in urban centers such as Klagenfurt, remains high.

On June 1, 2025, an important change in lending came into force when the KIM regulation fell, which had previously resulted in a difficult lending. Although the new guidelines of the banks are still uncertain, this could give another thrust to the purchase of real estate. In recent years, however, the change in the net rental has remained relatively stable, while the operating costs have increased noticeably, which also contains the rental market.

challenges in the new building

Nevertheless, there are also dark sides in the industry. High construction costs brake the new construction and the completion of many projects. Inflation and increasing material prices have massively raised the construction costs, which puts pressure on the market for new construction projects. Perkonig therefore urgently demands measures to reduce these costs. Attractive housing funding and simplification of the building regulations could help close the gap in the offer.

aggravated that the rental sector is affected by a stagnant offer. The demand for new rental apartments remains high, while the supply hardly fulfills. The effects of demographic change are particularly noticeable in rural regions, which even leads to falling prices in some areas.

The role of lending

lending is a crucial factor in the real estate industry. The residential property credit directive, which came into force in Germany in March 2016, stipulates that lenders have to provide comprehensive information about the risks of real estate financing. Lending is particularly difficult for young families, pensioners and EU citizens from the non-euro area, since banks use strict guidelines for creditworthiness.

New regulations that have been in effect since June 1, 2018 aim to improve consumer protection. A larger focus is now on the property value, which increases the possibility of receiving loans even with a lower income situation. For many who have considered a purchase in recent years, this could be of crucial importance.

Overall, the real estate market in Carinthia remains dynamic, even if it is faced with challenges. Investments in infrastructure and access to affordable living space are now essential to strengthen both urban and rural regions and to ensure that demand can be served in the long term.

The situation remains exciting and we will continue to follow the developments.

For detailed information on the current trends in the real estate sector and the effects of the new lending guidelines, read more on meinzirk.at and Wirtschafts-nachrichten.at as well as on homeday.de.