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Graz is said to artificially increase rent prices – million-euro lawsuit threatened – 5 minutes

Published on 30 August 2024, 08:25 / ©5 minutes

“These new requirements are driving up housing prices completely unnecessarily,” complains Andreas Köttl, President of the Association of Austrian Project Developers (VÖPE).

“These new requirements are driving up housing prices completely unnecessarily,” complains Andreas Köttl, President of the Association of Austrian Project Developers (VÖPE).

In Graz, lawsuits worth millions are threatened because of building regulations and years of waiting times for approval. The VÖPE is calling for changes because the city is driving up housing prices.

by Julia Waldhauser

Team photo from 5min.at: Julia Waldhauser works for the online editorial team in Graz.

2 minutes reading time(282 words)

The situation in the Styrian capital is coming to a head: developers in Graz have to wait up to seven years for a building permit, and the city is facing increasingly fierce criticism. Now there is a threat of further claims for damages amounting to millions because the city of Graz has apparently introduced new, disproportionate building regulations.

Waiting for permits: an expensive nightmare

Patience is required in Graz – and to an extreme degree. Anyone who wants to build is currently faced with waiting times of up to seven years. The Constitutional Court (VfGH) has already reprimanded the city several times for these unreasonable delays. But that’s not all: the city government has now imposed additional building regulations which, according to reports in the “Kleine Zeitung”, are disproportionate to the planned construction projects.

VÖPE sounds the alarm: “Housing prices are exploding!”

“These new requirements are driving up housing prices unnecessarily,” Andreas KöttlPresident of the Association of Austrian Project Developers (VÖPE). Köttl sees the responsibility of Graz Mayor Elke Kahr (KPÖ) and calls on her to show more foresight and make fewer ideological decisions. “Those looking for housing are the main victims of this failed policy,” Köttl continued. The VÖPE, which advocates for sustainable living space and transparent framework conditions, sharply criticizes the city administration.

The city of Graz under pressure

The allegations against the city of Graz are serious, and the impending lawsuits worth millions could cause serious difficulties for the city administration. It remains to be seen whether and how quickly Graz will get the problems under control – but one thing is certain: the cost of housing could continue to rise if a quick solution is not found.

What does the VÖPE do?

The VÖPE, which currently has 91 member companies from all over Austria, sees itself as an independent authority for construction projects and legislative development. The association has made it its mission to highlight grievances and create reliable framework conditions for project development. In the current situation, the VÖPE is calling for urgent measures to get housing construction in Graz back on track.

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