Everyone who buys usually wants ‘real estate’, but landowners often only rent for a limited period. There is also skepticism about the Dossenweg project in Salzburg-Gneis, where only a few apartments have been sold.
The residential area on Dossenweg in Salzburg-Gneis is first-class: a total of 258 apartments are being built, almost half of which are owned. And that’s where it gets complicated. 69 times the dream home is “only” awarded through construction law. The landowner decided not to sell the area, but to make it available for a limited period.
Alternative to buying and renting in cities
The share of construction rights is increasing, especially in cities where the real estate price spiral continues to increase. “It is often the only way to get to the ground,” says Stephan Gröger, director of Heimat Österreich, which is building on the Dossenweg. Especially the church and more and more farmers are simply selling their land.
Building rights are usually not a catch when it comes to subsidized apartments: you need less capital in the beginning (1000 euros/m2 on Dossenweg), but you do have to pay monthly building rights interest, a kind of rent for the house. However, buyers for the project on Dossenweg still pay the impressive amount of 5,200 euros per square meter.
What happens to the apartment after 99 years?
Those who want to pass things on have a more difficult time. After 99 years, the apartment goes back to the owner. The right is then extended or a transfer fee is paid. “Construction law is something exotic for many people. “We need more information,” says director Gröger. After 150 initial applications, only 41 apartments on Dossenweg (approximately two-thirds of real estate) have been sold so far.
The city is now relaxing the guidelines. The prize is no longer just a random draw. The project developer can advise directly. The registration time in the city is shortened. However, there is still a brake on speculation for those looking to sell.
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.
