KIM regulation falls: Rescue for buyers or chaos on the real estate market?
KIM regulation falls: Rescue for buyers or chaos on the real estate market?
Österreich - Gerald Gollenz, the chairman of the specialist association of real estate and wealth scattering countries in the WKÖ, has now taken a position on the upcoming end of the KIM regulation, which in recent years has defined strict rules for living credit. "The times of the outdated regulations must be finally over," emphasizes Gollenz, while clearly appealing the negative effects of these regulations on the Austrian real estate market. According to Immobilien-redaktion.com , the KIM regulation led to a dramatic decline in new construction and renovation activities, which is up to 80 percent nationwide.
The effects are unmistakable: over 400 real estate agent and property developer companies have thrown the towel in the past two years. Professions such as those of the financial service providers, notaries, lawyers, civil technicians and architects also complain about massive loss of profit. "This is an alarming development," says Gollenz and warns of the catastrophic consequences that could have a further existence of the strict rules for the real estate market and potential buyers.
Fortunately, July 1, 2025 not only brings a farewell to the KIM regulation, but also a wave of new regulations that aim to stabilize the real estate market. In this way, banks can use more flexible lending in the future. The authorities want to create access to the living market, which is more fair and more accessible. The hope is that younger couples and families can benefit from it, since the calculations for maximum lending and debt ratio are adapted. According to Betterhomes.at, the maximum lending outlet is relaxed, which means that in certain cases, banks can make exceptions from the own funds.opportunities and risks on the real estate market
What exactly changes? In certain exceptional situations, the credit institutions can finally offer longer terms and the maximum debt ratio of 40 percent of household income can now be expanded in certain cases. According to the expert opinion, these changes could stabilize the demand in the middle price segment and stabilize the price level in urban regions.
Despite all these positive developments, caution is required. The loosening could lead to borrowers making carefree financial decisions. Therefore, the banks remain obliged to carefully examine the creditworthiness of their customers. With all these adjustments, it is important that those interested in buying deal intensively with their financial options and take advantage of independent financial advice at an early stage in order to get an overview of the various offers.
In view of the difficult situation that the KIM Ordinance brought with it, many potential buyers are now motivated to ask inquiries and to conduct financing talks. "It is a ray of hope for the Austrian economy," concludes Gollenz. The coming weeks and months will show whether the real estate market in Austria can actually benefit from this turning movement or whether the shadows of the past will continue to be on it. Together with a good plan and solid advice, nothing stands in the way of the dream of your own home.| Details | |
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| Ort | Österreich |
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