“The land, the building materials, the wages – it doesn’t get cheaper,” says Norbert Königsecker, director of the Wimberger Group from Lasberg (Upper Austria). The family business’s bosses explain why waiting for lower prices won’t help and how customers should reconsider their approach.
What must we do? Wait or build immediately? Christian Wimberger is often asked these questions. “What should be cheaper?”, the boss of the construction group of the same name from Lasberg usually answers with a counter question and then explains: “Even though the materials are cheaper here and there, the bottom line is that the construction costs have a very high wage share, and the costs of these shall not come down.”
Strong in renovations, extensions and project developers
That is why Wimberger, who has positioned his company broadly in recent years under director Norbert Königsecker, advises not to wait for anything. “Although we are still very much seen as a house builder, we are also very active in renovations or extensions and as a project developer,” says Wimberger.
Higher construction and land costs, stricter lending guidelines and higher interest rates – all causing a slump in the new construction industry. “The mood has changed. People say: I’m not going to build anymore, it’s too expensive for me,” says Königsecker.
Building like before: smaller and in phases
If you want to build, you have to do it on a smaller scale: “You build again like ten or twenty years ago, smaller and in phases,” says Wimberger’s manager. This has consequences for the industry: the turnover of many companies will fall by 50% next year compared to 2022.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
