Real Estate

In Austria, real estate is governed by a combination of federal laws, regional regulations and Civil Code provisions, as follows:

• Civil Code: This is the primary source of private law in Austria, including real estate transactions, governing:
• • contracts;
  • property rights; and
  • land ownership.
• It sets out rules for the transfer of property, leases and other real estate matters.
• Land Register Act: This law regulates the Austrian land register – a central tool for recording:
• • property ownership;
  • liens; and
  • other rights related to real estate.
• It is crucial for ensuring the clarity and security of property transactions in Austria.
• Tenancy Act: This regulates the relationship between landlords and tenants in Austria. It covers:
• • rent control;
  • tenant protection;
  • notice periods; and
  • the rights and obligations of both parties regarding maintenance and repairs of rental properties.
• In Vienna, where the rental market is particularly large, this act plays a central role in tenant protection and in setting the conditions for lease agreements.
• The Condominium Act: This governs the creation and management of condominium ownership in Austria. It:
• • defines how ownership of individual units within a building is established; and
  • outlines the rights and obligations of co-owners with respect to the common areas of the property.
• Regional and municipal planning laws: These regulate how land may be used and developed. Each federal state enacts its own rules for spatial planning and construction. In addition, municipalities create land use plans and development plans that:
• • determine whether a property can be used for residential, commercial or agricultural purposes; and
  • set guidelines on building density, height and spacing.

Additional regulations often apply to certain types of real estate, such as residential real estate, which are often anchored in the Rent Act and the Condominium Act. For commercial real estate such as offices, retail space and industrial properties, there are no additional special legal requirements, but specific zoning laws or building regulations may apply at the municipal level that regulate their acquisition and use. For hotel real estate, building and operating regulations must also be observed, as hotels are subject to special regulations regarding operating licences and safety standards.

Condominiums: These are regulated by the Condominium Act, which allows individuals to own specific units within a multi-unit building while sharing ownership of common areas such as staircases, roofs and gardens. The law also sets out clear rules on:

• the allocation of maintenance costs;
• collective decision-making among co-owners; and
• the conditions under which renovations or structural changes may be made.

Rental properties: Rental properties – especially those used for residential purposes – are governed by the Tenancy Act. This law provides extensive protections for tenants and regulates aspects such as:

• rent ceilings;
• lease durations;
• grounds for eviction; and
• the form of rental agreements.

However, the full application of the act depends on factors such as the age and type of the building.

Agricultural and forestry land: This is subject to the Land Transfer Laws, which are enacted at the level of the federal states. These laws are designed to maintain the structure of family farms and limit land speculation. As such, the acquisition of such land often requires approval by the local land transfer authority, particularly when the buyer is not an Austrian citizen or when the property is of a certain size.

Heritage or protected buildings: These fall under the Monument Protection Act. These properties are listed by the Federal Monuments Office and any structural changes or renovations must be pre-approved. Although owners may be eligible for financial support or tax advantages, they are also subject to strict preservation requirements.

Commercial real estate: Commercial real estate – such as office buildings, retail spaces and hotels – must comply with relevant zoning laws and business regulations. These properties are often treated differently under tax law – for instance, rental income may be subject to value-added tax. In addition, the use of the property must align with municipal land use plans.

Ownership: The most comprehensive right one can have over a property, allowing the owner to fully control and use the property, including selling, leasing or altering it. Ownership rights are typically registered in the Land Register.

Co-ownership: When multiple individuals share ownership of a property, each owning a defined portion of the property (eg, an apartment building where each owner holds a share of the common areas and individual apartments).

Condominium ownership: Allows individuals to own an apartment or unit within a building while sharing ownership of common areas such as hallways, roofs and courtyards with other owners. This form of property right is regulated by the Condominium Act and grants owners exclusive rights to their units, along with shared responsibility for the maintenance and management of common spaces. It is common in Vienna, particularly in apartment buildings, and owners typically contribute to the upkeep through regular fees.

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Yes, in Austria, there are several restrictions on real estate ownership that are primarily aimed at:

• regulating property transactions;
• protecting land use; and
• ensuring fair market practices.

These restrictions can vary based on:

• the type of property;
• the geographic location; and
• the status of the buyer.

Key restrictions on real estate ownership in Austria are outlined below.

Property ownership regulations:

• Foreign ownership restrictions: Non-EU/European Economic Area (EEA) citizens may need approval from regional authorities to acquire property in Austria. Each federal province has its own regulations governing such approvals.
• EU/EEA citizens: Citizens from EU or EEA member states are generally treated equally to Austrian nationals and typically do not require special approval.

Land registration system: Austria maintains a centralised and transparent Land Register that records all property titles and encumbrances. Ensuring accurate registration is crucial for establishing legal ownership.

Contractual obligations and due diligence:

• Purchase agreements: Contracts must:
• • comply with Civil Code provisions; and
  • clearly outline the terms, conditions and obligations of both parties.
• Due diligence: Thorough due diligence is essential to:
• • verify legal title;
  • assess existing encumbrances; and
  • ensure compliance with zoning and building regulations.

Taxation considerations:

• Real estate transfer tax: Property acquisitions are subject to a transfer tax, typically 3.5% of the purchase price.
• Value-added tax (VAT): Real estate transactions are generally not subject to VAT. However, if the seller is an entrepreneur, it may opt to treat the sale as VAT taxable at a rate of 20%.
• Ongoing property taxes: Owners must pay annual property taxes based on assessed property value.

Zoning and building regulations: Compliance with local zoning laws and building codes is mandatory. These regulations, governed by provincial Building Acts, dictate permissible property uses and development standards.

Lease and tenancy laws: If considering rental investments, understanding Austria’s tenant-friendly laws is crucial. Regulations cover:

• rent control;
• tenant rights; and
• lease termination procedures.

Environmental and heritage considerations:

• Environmental regulations: Assess potential environmental liabilities, such as contamination or hazardous materials, which could impact property value and usability.
• Heritage protection: Properties with historical significance may be subject to preservation orders, restricting alterations and imposing maintenance obligations.

Yes, there is such possibility but it is limited. Only so called “Superaedificate” is a building that is not intended to remain on the land permanently. However, the standard is that the owner of land becomes the owner of the building constructed theron.

In Austria, the primary security interest attaching to real estate is a mortgage, which grants the creditor a right of enforcement against the property in the event of default. Mortgages must be registered in the Land Register to be valid and enforceable against third parties. In addition to mortgages, security interests may include:

• the assignment of rental income;
• the assignment of insurance claims; and
• in the context of share deals, pledges over shares in property-owning companies.

The priority of security interests is determined by the date and time of their registration in the Land Register, following the principle of ‘first in time, first in right’. Earlier registered mortgages have priority over later registered rights.

In Austria, the Land Register is administered by the district courts with jurisdiction over the location of the property. The Land Register is a public and electronic database that records:

• ownership rights;
• encumbrances; and
• other legal interests in real estate.

It is supervised by the judiciary to ensure the accuracy, reliability and legal security of real estate transactions.

In Austria, registration of real estate rights, transactions and encumbrances in the land register is mandatory for the transfer and creation of rights in rem, such as ownership and mortgages. Without registration, these rights are not legally effective against third parties. Failure to register means that:

• the intended right does not legally exist; and
• the parties cannot:
• • rely on it in dealings with third parties; or
  • enforce it publicly.

In Austria, registration in the Land Register requires a written application submitted to the competent district court, accompanied by public or publicly certified documents evidencing the legal transaction. For example, a transfer of ownership must be supported by:

• a purchase agreement with notarised signatures; and
• a declaration of conveyance expressly consenting to registration.

Additional documents, such as tax clearance certificates and proof of payment of land transfer tax, may also be required depending on the transaction.

The registration process in Austria begins with the submission of an application to the competent district court, accompanied by all required notarised documents. The court examines the application for formal correctness and legal validity. If all requirements are met, the court enters the right or encumbrance in the Land Register. Upon registration, the right becomes effective against third parties. The applicant then receives an official registration notice.

Yes, in Austria, the information recorded in the Land Register is publicly accessible. Any person may obtain extracts showing ownership, encumbrances and other registered rights in relation to a property. Access is available through notaries, lawyers and authorised online portals, subject to the payment of a small administrative fee.

In Austria, commercial leases typically take the form of business leases, covering office, retail, industrial or hospitality spaces. They can be concluded for a fixed term or for an indefinite period. In addition, lease agreements allow the lessee not only to use the property but also to derive income from it, which is common in sectors such as gastronomy and agriculture. The specific form depends on:

• the intended use; and
• the contractual arrangements between the parties.

In Austria, the terms of a commercial lease are largely freely negotiable, subject to:

• certain mandatory provisions under the Civil Code; and
• where applicable, partial applicability of the Tenancy Act.

Commercial leases typically cover:

• the duration of the lease, which can be either fixed term or indefinite;
• the amount and adjustment mechanism of the rent;
• the requirement for a security deposit;
• sub-letting;
• maintenance obligations; and
• termination rights.

Specific clauses are often included to regulate:

• indexation of rent;
• renewal options;
• early termination rights; and
• the allocation of operating costs.

A commercial lease can generally be concluded informally and does not require a specific form unless otherwise agreed by the parties. However, for evidentiary purposes, written contracts are standard practice. If the lease term exceeds three years, written form is highly recommended to avoid legal uncertainties. The contract typically includes:

• identification of the parties;
• a description of the leased premises;
• the rent and ancillary costs;
• the duration of the lease;
• permitted use of the property; and
• termination conditions.

Notarisation is not required unless special agreements, such as certain corporate guarantees, are involved.

The process for concluding a commercial lease in Austria typically begins with negotiations between the parties on key terms such as:

• rent;
• duration;
• permitted use; and
• maintenance obligations.

Once agreed, the terms are set out in a written lease agreement. After both parties have signed the contract, the tenant usually provides the agreed security deposit. Depending on the specific arrangement, registration of the lease in the Land Register may be considered for leases exceeding three years, although this is not mandatory. The tenant then takes possession of the premises on the agreed handover date.

Under a commercial lease in Austria, the landlord is generally obliged to provide the premises in a condition suitable for the agreed use and to maintain the property’s structural integrity. The tenant is responsible for:

• using the premises in accordance with the contract;
• paying rent and ancillary costs; and
• maintaining the leased area.

If either party breaches its obligations, the consequences can include:

• claims for damages;
• termination of the lease for cause; and
• enforcement of contractual penalties if agreed.

In particular, failure to pay rent may entitle the landlord to terminate the lease and seek eviction.

In Austria, rent variations are typically effected through indexation clauses. The rent is usually linked to the Austrian Consumer Price Index and is adjusted annually or after reaching a defined threshold of change. The specific adjustment mechanism, frequency and reference index are agreed in the lease contract. In the absence of an indexation clause, the rent generally remains fixed unless otherwise renegotiated by the parties.

In Austria, rental income is subject to income tax or corporate income tax, depending on whether the landlord is an individual or a corporation. In addition, rental income from commercial leases is generally subject to value-added tax (VAT) at a rate of 20%, provided that the landlord has opted for VAT liability. Residential leases, in contrast, are usually exempt from VAT unless the landlord actively opts for taxation. Property owners must also pay ongoing property tax based on the assessed value of the property.

Yes, in Austria, it is possible to structure a commercial lease as a triple net lease. In such agreements, the tenant assumes responsibility not only for rent, but also for:

• operating expenses;
• maintenance;
• repairs;
• property tax; and
• insurance costs.

Although not a standard statutory concept, triple net leases are common in practice for commercial properties and must be expressly agreed in the lease contract to be effective.

Landlord and tenant disputes are generally resolved through negotiation and mediation as a first step. If no settlement can be reached, disputes are adjudicated by the ordinary civil courts. For certain residential lease matters, specialised arbitration boards exist in larger cities such as Vienna, but for commercial leases, direct recourse to the courts is common. Lease agreements often include jurisdiction clauses specifying the competent court and may provide for arbitration in larger or international transactions.

It is common practice for landlords to require a security deposit from tenants, typically amounting to three to six months’ gross rent. Alternatively, or additionally, bank guarantees or corporate guarantees may be requested, particularly in larger commercial leases. In high-value transactions, personal guarantees from shareholders or parent company guarantees are also used to secure the tenant’s obligations. The form and amount of the security are negotiated individually and documented in the lease agreement.

In Austria, real estate transactions typically take the form of asset deals, involving the direct purchase of property through a notarised purchase agreement followed by registration in the land register. Share deals, where shares in a company owning real estate are transferred, are also common, particularly for larger commercial properties or portfolios. Both transaction forms require thorough due diligence and asset deals necessitate strict compliance with formal requirements, including notarisation and registration for legal validity.

In Austria, the key players in a real estate transaction are:

• the buyer;
• the seller; and
• their respective legal advisers.

In most cases, a notary is involved to certify signatures and ensure compliance with registration requirements. Real estate agents often assist in marketing and negotiating deals. For larger transactions, banks or financing institutions, technical experts such as surveyors and tax advisers may also play important roles, particularly in structuring the transaction and conducting due diligence.

There is no general statutory duty for the seller to disclose defects; however, the seller must not fraudulently conceal material issues. In practice, sellers typically provide representations and warranties concerning:

• ownership;
• absence of encumbrances (other than those disclosed);
• compliance with zoning and building regulations; and
• the absence of pending litigation or environmental contamination.

Breaches of representations may entitle the buyer to claim damages or rescind the contract under general civil law principles.

In Austria, due diligence typically covers legal, technical and financial aspects. Legal due diligence includes reviewing the Land Register for:

• ownership;
• encumbrances;
• easements; and
• pending registrations.

Compliance with zoning and building regulations is verified and lease agreements or permits are reviewed if applicable. Technical due diligence assesses:

• the physical condition of the property;
• potential contamination; and
• necessary maintenance.

Financial due diligence examines:

• tax liabilities;
• operating costs; and
• other financial obligations associated with the property.

A real estate transaction requires a written purchase agreement with notarised signatures. The agreement must clearly identify:

• the parties;
• the property; and
• the purchase price.

A declaration of conveyance is required to authorise registration of ownership in the land register. In addition, proof of payment of land transfer tax and registration fees must be provided before registration can be completed. Depending on the case, further documents such as corporate authorisations or tax certificates may also be necessary.

The process for concluding a real estate transaction in Austria begins with negotiating and signing a notarised purchase agreement, followed by payment of the purchase price, often through an escrow arrangement. After payment, the conveyance declaration is submitted and the ownership change is registered in the Land Register. The entire process typically takes between four and eight weeks. Costs incurred include:

• land transfer tax (3.5% of the purchase price);
• Land Register registration fee (1.1%);
• notary fees; and
• legal fees, which are usually based on either:
• • fixed rates; or
  • a percentage of the transaction value.

The seller must transfer the ownership free of undisclosed encumbrances and defects; while the buyer must pay the purchase price and accept the property. If the seller breaches the agreement – for example, by failing to deliver clear title – the buyer may claim damages or rescind the contract. If the buyer breaches, particularly by failing to pay, the seller may:

• demand payment;
• claim damages; or
• rescind the agreement.

Contractual penalties are often agreed to strengthen enforcement in case of breach.

The main taxes payable on a real estate transaction are:

• land transfer tax, at a rate of 3.5% of the purchase price;
• the land register registration fee, amounting to 1.1%; and
• value-added tax (VAT) at 20% if the seller opts for VAT liability – typically in commercial transactions.

The buyer usually bears these costs, unless otherwise agreed.

The most common providers of real estate finance are:

• domestic and international banks;
• insurance companies; and;
• increasingly, private debt funds.

Traditional banks remain the primary source, particularly for residential and commercial property financing. There are no general restrictions on who can provide financing, but lenders must comply with Austrian banking and anti-money laundering regulations. Foreign lenders are permitted to finance Austrian real estate transactions, provided that they meet applicable regulatory requirements.

The most common forms of real estate finance are:

• traditional bank loans secured by mortgages;
• for larger transactions:
• • mezzanine financing;
  • project financing for developments;
  • syndicated loans; and
  • bond issues; and
• increasingly, alternative financing methods such as crowdfunding or private debt, particularly for smaller or innovative projects.

The choice of financing structure depends largely on the size, risk profile and type of real estate involved.

Lenders in Austria typically require:

• a signed loan agreement;
• registration of a mortgage in the Land Register;
• documentation evidencing the borrower’s ownership and financial standing, such as:
• • Land Register extracts;
  • valuation reports;
  • corporate documents; and
  • financial statements;
• insurance policies covering the property;
• proof of compliance with building and zoning laws; and,
• where applicable, assignment agreements for rental income or other receivables.

Borrowers must also comply with anti-money laundering and know-your-customer requirements.

In Austria, lenders typically require a first-ranking mortgage over the property as the primary security interest. Additional securities often include:

• the assignment of rental income;
• pledges over bank accounts or shares in property-owning companies; and
• personal or corporate guarantees.

In development projects, lenders may also request assignments of:

• construction contracts;
• insurance claims; and
• future sales proceeds.

The specific security package is tailored to the transaction size, risk profile and the nature of the financed property.

The process for obtaining real estate finance in Austria begins with submitting a financing application supported by property valuations, financial documents and project information. After credit assessment and approval, the loan agreement is negotiated and signed. Security interests, particularly mortgages, must be registered in the Land Register. Costs typically include:

• bank arrangement fees;
• Land Register registration fees (1.1% of the secured amount);
• notary fees for certifications; and
• legal fees.

Additionally, borrowers may incur valuation and due diligence costs.

If a borrower breaches the loan agreement, the lender may enforce the mortgage through judicial foreclosure proceedings. The lender must first obtain an enforcement order and then initiate a public auction of the property. The proceeds are used to satisfy the lender’s claim according to the priority registered in the Land Register. Enforcement can take several months to over a year, depending on the complexity of the case. Alternative remedies, such as private sales with the borrower’s consent, may also be agreed contractually.

The most common investors in real estate are:

• domestic institutional investors, such as:
• • insurance companies;
  • pension funds; and
  • real estate investment funds;
• private individuals; and
• family offices.

In recent years, international investors – particularly from Germany, Switzerland and Central and Eastern Europe – have also been increasingly active. Restrictions mainly apply to non-EU/European Economic Area (EEA) investors, which may require approval from regional land transfer authorities, especially when acquiring residential or agricultural land. EU/EEA investors generally face no special restrictions

Common investment vehicles for real estate include:

• limited liability companies (GmbHs);
• partnerships (OGs or KGs); and
• real estate investment funds.

A GmbH offers limited liability and is widely used for asset protection and financing flexibility but involves higher administrative and compliance costs. Partnerships – particularly KGs – provide tax transparency and are easier to manage, but partners may face unlimited liability. Real estate investment funds offer diversification, professional management and regulatory oversight, but are subject to strict licensing and reporting requirements.

In Austria, a GmbH is established by executing articles of association before a notary and registering the company with the Commercial Register. Partnerships (OGs or KGs) are formed by a simple partnership agreement and registration. Real estate investment funds require approval by the Financial Market Authority and must comply with specific regulatory frameworks. All vehicles must:

• maintain accounting records;
• prepare annual financial statements; and
• comply with corporate governance requirements, including filing obligations with the Commercial Register.

In Austria, land use is regulated by a combination of federal, state and municipal laws. Each federal state has its own spatial planning and building regulations, while municipalities adopt zoning plans and development plans that define the permitted use of land (eg, residential, commercial or agricultural). Compliance with these plans is mandatory and any development must adhere to the specific zoning and construction requirements applicable to the property’s location.

The process for obtaining planning permission involves submitting an application with detailed construction plans, project descriptions and expert reports to the competent municipal authority. The authority reviews compliance with zoning and building regulations and may hold a public hearing. If approved, a building permit is issued.

The process typically takes between two and six months, depending on:

• the complexity of the project; and
• the authority’s workload.

Costs include:

• administrative fees, which vary by municipality; and
• professional fees for architects, engineers and legal advisers.

Yes, in Austria a planning decision can be appealed. Applicants, and in certain cases affected third parties such as neighbours, may file an appeal with the competent regional administrative authority within a specified period, usually four weeks after notification. Further judicial review before the administrative courts is possible if the appeal is unsuccessful. The appeal must be based on alleged legal or procedural errors in the original decision.

In Austria, failure to obtain the required planning permission or to comply with imposed conditions can result in administrative sanctions, including fines and orders to cease construction or use. In serious cases, authorities may order the demolition of unauthorised structures. Non-compliance:

• can also prevent registration of the building in the Land Register; and
• may affect the ability to sell or finance the property.

Yes, expropriation of land is possible in Austria but is strictly regulated. It may occur:

• only for reasons of overriding public interest, such as infrastructure projects or urban development; and
• only if no less intrusive measures are available.

The procedure requires formal administrative proceedings, during which the affected owner must be heard. Fair compensation based on the market value of the property must be paid. Decisions can be challenged before the courts.

Confiscation of land is possible only in exceptional circumstances and under strict legal conditions, such as in criminal proceedings where property has been used for illegal activities. Outside criminal law, land can be expropriated only through formal administrative procedures based on public interest, with appropriate compensation. Arbitrary or uncompensated confiscation is prohibited under constitutional property protection principles.

In Austria, key environmental laws affecting real estate include:

• the Environmental Impact Assessment Act;
• the Waste Management Act;
• the Water Rights Act; and
• various nature conservation laws enacted by the federal states regulating:
• • environmental assessments for major developments;
  • waste disposal;
  • protection of water bodies; and
  • the conservation of natural habitats.

Compliance with these regulations is mandatory during the development, use and occupation of real estate; and breaches can result in:

• fines;
• permit revocations; or
• remediation obligations.

Liability for environmental contamination primarily follows the ‘polluter pays’ principle. The party responsible for causing the contamination is obliged to carry out remediation. If the polluter cannot be identified or is insolvent, the current property owner may be held liable, particularly if it was aware of the contamination at the time of acquisition. Clean-ups are typically supervised by the environmental authorities and must be conducted in accordance with approved remediation plans. Failure to remediate can result in administrative orders and fines.

Real estate transactions should include thorough environmental due diligence to identify contamination risks, including:

• a review of public registers for contaminated sites; and
• where appropriate, environmental site assessments.

Contracts often contain representations and warranties regarding the environmental condition of the property and allocate remediation responsibilities. Buyers should also assess compliance with environmental laws, particularly for industrial or former commercial properties, to avoid future liability for clean-up costs.

Austria has implemented a comprehensive framework to promote green buildings and enhance energy efficiency in the real estate sector. This framework encompasses:

• financial incentives;
• regulatory standards;
• certification systems; and
• public-private initiatives.

Financial incentives:

• Sanierungsbonus: A flagship programme offering subsidies of up to 50% for energy-efficient renovations, including:
• • insulation;
  • window replacements;
  • heating system upgrades; and
  • the installation of renewable energy technologies.

Higher rates are available for low-income households.

• Raus aus Öl und Gas: This initiative provides financial incentives to homeowners who replace oil or gas heating systems with sustainable alternatives such as heat pumps, biomass boilers or district heating, aiming to reduce dependency on fossil fuels.
• Mustersanierung: Targeting public and commercial buildings, this programme funds comprehensive renovations to:
• • improve thermal insulation;
  • utilise renewable energy sources; and
  • increase energy efficiency.
• Tax incentives: Since 2022, certain energy efficiency measures, such as thermal renovations and boiler replacements, have been tax privileged under the Öko-Sonderausgabenpauschale, provided that federal funding under the Environmental Promotion Act has been received.

Regulatory standards: Austria has adopted Nearly Zero Energy Buildings requirements in its national building codes, aligning with the EU Energy Performance of Buildings Directive. The Austrian Institute of Construction Engineering (OIB) issues harmonisation guidelines, including OIB Standard 6 for energy-saving rules.

Certification systems:

• Austrian Society for Sustainable Building (ÖGNB) certification: The ÖGNB offers a certification system covering criteria such as energy efficiency, ecological quality, comfort and quality of workmanship, indicating high-quality new buildings and renovations.
• EU GreenBuilding Programme: For non-residential buildings, this programme awards energy efficiency measures that achieve a 25% energy saving compared to building regulations for new constructions and refurbishments.

Public-private initiatives:

• Green Finance Initiative (GFI): This public-private partnership promotes sustainable finance in Austria, providing resources, training and networking opportunities to support the integration of environmental criteria into financing decisions, including those related to real estate projects.
• Austrian Green Planet Building: This initiative extends Austria’s national climate protection objectives to the international environment, promoting sustainable building practices and technologies developed in Austria.

These initiatives collectively aim to reduce energy consumption and carbon emissions in the building sector, aligning with Austria’s commitment to environmental sustainability and the EU climate goals.

Several environmental certifications apply to real estate, with the most notable being the ÖGNB certification, which evaluates:

• energy efficiency;
• environmental impact; and
• comfort.

Additionally, the EU GreenBuilding Programme recognises energy-efficient buildings – typically those that achieve a 25% reduction in energy consumption compared to standard building codes. LEED (Leadership in Energy and Environmental Design) and BREEAM (Building Research Establishment Environmental Assessment Method) are also commonly used international certifications that apply to projects in Austria.

The Austrian real estate market is in a phase of stabilisation and slight recovery in 2025. Demand remains strong in urban areas, while rural regions are facing price declines. Planned legislative adjustments aim to:

• stabilise the market in the long term; and
• mitigate the impact of inflation on tenants.

To ensure the smooth conclusion of a real estate transaction in Austria, thorough due diligence is crucial. This includes:

• verifying property ownership;
• checking for encumbrances in the Land Register; and
• assessing compliance with zoning and building regulations.

Both parties should also agree on clear contractual terms regarding:

• payment;
• timelines; and
• responsibilities for any necessary repairs or adjustments.

One potential sticking point is financing: buyers should ensure that they have secured financing before signing the contract. Another common issue is the accurate assessment of property condition: buyers should consider a technical inspection, particularly for older properties. Lastly, delays can arise from lengthy administrative processes, such as the Land Register registration, so planning for potential delays is essential.