As part of the Primus Business Stage series, experts from the construction sector met in the Styria Media Center for a panel discussion. “Construction site Austria: We need a plan,” is the motto. The topic was the challenges for a future-proof “House of Austria”. Every problem solution requires a ruthless inventory. This comes from Michael Wardian, CEO of the Kirchdorfer Group. His company is active worldwide in the cement, road safety and precast concrete sectors. “Building construction has a problem. Single-family home construction has come to a complete standstill, and the situation is also not easy for multi-story residential construction. Only the infrastructure sector, with the large investors ASFINAG and ÖBB, keeps a significant part of the construction industry alive.” When asked directly, Judith Engel, CEO of ÖBB Infrastructure AG, made a commitment to her company’s investment activities. “Our investments are reflected in a very stable framework plan and are at an all-time high. This leads to a certain basic capacity utilization in the construction industry.” Despite unplanned work, such as repairing the damage on the Western Railway line due to the last flood, all planned investments will continue as planned.
Long procedure time
However, it often takes years before construction begins. This is increasingly becoming a problem, as Alexander Pawkowicz, managing director of the Association of Austrian Project Developers, explains. “It took the city of Graz seven years to obtain a first-instance building permit. Despite relevant findings from the Constitutional Court, nothing happened. Of course the costs then increase. We assume that around 30 percent of the project price will come from taxes, legislation and the extended project duration.” Challenging times for the construction industry. Hans Schaffer, board member of the ÖWG Wohnbau, sees the bottom of the trough: “The state of Styria has adjusted the housing subsidies and we can start our construction work again. Normally we build around 1,200 apartments a year, that has now gone down to 600, now we are moving towards 800. It would be even faster if certain processes were simplified.” The responsible state councilor, Simone Schmiedtbauer, takes this up. “Our job is to create framework conditions and help. We always talk about de-bureaucratization. I have therefore given my departments an order to clear out regulations.” She points to over 200 building applications for single-family homes since the start of the new housing subsidy program on September 1st. Stefan Peters brings in another aspect, namely that of technical progress, which often advances faster than official procedures can keep up. Peters is head of the Institute for Structural Design at Graz University of Technology and technical consultant. “We in research constantly have new ideas. The path from the idea to the research project and funding to the actual project construction is quite a long one.” The panel also sees the possibility of objections from environmental associations or citizens’ initiatives as challenging.
Bundling of competencies
Simone Schmiedtbauer has already launched an approach to speed up certain official processes: “At the last speakers’ conference, I called for a minister responsible for housing. So far, three to four ministries are responsible for this. That belongs in one hand.” Alexander Pawkowicz explains the situation in Austria in this context: “The Ministry of Labor is responsible for housing construction, the associated funding is located in the Ministry of Economic Affairs. If you want to build a photovoltaic system on the building, the Ministry of Climate Change is responsible , for all questions of tenancy law the Ministry of Justice and so on.” He sees a great opportunity to unite all housing agendas in one hand when the next government is formed.
Sustainability and climate protection
In addition to deregulation, sustainability and climate protection are probably the topics of the time. “We have to think about how we build. More economical, more intelligent, looking at the inventory and using it for longer,” says Stefan Peters. This is where concrete comes into play – and with it its longevity. “The first reinforced concrete buildings from around 100 years ago have a better CO₂ balance than buildings from 2010. Not only technical but also economic decisions are needed here.” ÖBB has made these decisions a long time ago. Judith Engel: “Our infrastructure projects have always been linked to a lifespan of many years. Buildings and systems must last at least 100 years. We deal with the entire range of relevant issues.” Sustainability is also a major concern in non-profit housing. “The requirements in residential construction are very high,” says Hans Schaffer. “We are constantly reducing the heating requirements of the buildings, installing photovoltaic systems, using gray water and much more. But we have to pay attention to affordability. Property prices, construction costs, financing, subsidies – these parameters play a crucial role here.” Speaking of affordability: The EU’s KIM regulation, which prescribes stricter financing rules for loan terms, affordability and equity share and makes it particularly difficult for young people to finance a home, is included Expires in June 2025. So something is happening. Easier financing, shorter administrative channels, longer-lasting and therefore more sustainable construction projects – all building blocks for the future-fit “House of Austria”. One issue that needs to be addressed when it comes to concrete is land use. Michael Wardian has a clear opinion here. “I am absolutely against soil sealing. We have had catastrophic spatial planning over the last 20 to 30 years. We need a central shopping center instead of countless low-rise buildings with huge parking lots on the periphery. This development must stop.”
