Millstatt apartment project draws criticism over high prices

A planned apartment development in Millstatt has drawn criticism over prices that opponents say will put the homes beyond the reach of local residents, ORF reports.

The apartments are expected to cost between 7,000 and 10,000 euros per square metre. The project is on land leased from the Bundesforste, and annual charges of 3,000 to 6,000 euros per apartment would also apply, according to Green Party councillor Dora Gmeiner-Jahn.

Gmeiner-Jahn fears the homes will attract wealthy buyers who register Millstatt as their main residence but spend little time in Carinthia. Mayor Alexander Thoma said such “cold beds” are difficult to prevent because second-home owners can register as primary residents. Once a home is allocated, the municipality would have to launch a lengthy process to establish whether the owner’s centre of life is actually there, he said.

Real estate expert Michael Klien said strong demand from buyers, including from southern Germany, is pushing prices up in attractive destinations across Austria. He expects some of the homes to be used as holiday residences.

The Bundesforste rejects tourism projects that could create second homes, but says responsibility for zoning and use in private housing projects lies with municipalities. Similar developments on its land therefore remain possible.

Millstatt has more than 1,000 second homes. A new second-home levy could bring the municipality additional revenue, which might be used to support affordable housing.