AUSTRIA Law and Practice Contributed by: Christoph Urbanek, Irena Gogl-Hassanin and Mario Schiavon, Urbanek Law
traction. Investors and developers are explor - ing options such as crowdfunding, private equity and real estate investment trusts (REITs) to fund projects, providing flexibility and access to capi - tal, especially in a tightening credit environment. ESG (Environmental, Social, Governance) ESG principles have increasingly shaped Vien - na’s real estate market. Developers and inves - tors are prioritising green building standards, incorporating energy-efficient technologies and seeking green building certifications like LEED or BREEAM. There is a strong push towards decarbonisation, with many buildings being retrofitted for improved energy efficiency and the integration of renewable energy sources. Socially, developers are focusing on affordable housing and creating spaces that promote com - munity engagement. Governance practices have become more transparent, with an emphasis on ethical management. Furthermore, financial institutions are offering green bonds and sustain - able financing options, encouraging developers to align their projects with ESG criteria. These trends reflect a broader shift towards creating environmentally responsible, socially impactful and well-governed real estate developments. 1.3 Proposals for Reform In recent years, Austria has introduced several reforms impacting real estate investment, own - ership and development, with a particular focus on sustainability and urban planning. Green Building Incentives The Austrian government has proposed signifi - cant changes to construction and real estate laws to promote investment in sustainable con - struction and environmentally friendly refurbish - ments. These reforms aim to enhance the value of “ecological” buildings and are expected to
continue attracting foreign investment in the real estate sector. Urban Development Plan 2025 (STEP 2025) Vienna has revised its urban development plan, STEP 2025, to adapt to current requirements, including strategies for planning and assessing high-rise building projects. This plan aims to ensure Vienna’s innovative development in line with social, economic and ecological needs. As part of STEP 2025, Vienna has introduced new regulations for high-rise buildings, provid - ing guidelines for planning and assessing such projects. These regulations aim to manage urban growth effectively while maintaining the city’s character. Ownership ( Eigentum ) is the most comprehen - sive right one can have over a property, allowing the owner to fully control and use the property, including selling, leasing or altering it. Owner - ship rights are typically registered in the Land Register ( Grundbuch ). Co-Ownership Co-ownership ( Miteigentum ) occurs when mul - tiple 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 indi - vidual apartments). Condominium Ownership Condominium ownership ( Wohnungseigentum ) allows individuals to own an apartment or unit within a building while sharing ownership of 2. Sale and Purchase 2.1 Categories of Property Rights Ownership
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