AUSTRIA Trends and Developments Contributed by: Christoph Urbanek, Mario Schiavon and Irena Gogl-Hassanin, Urbanek Law
For project developers, this means considerable planning uncertainty, as the approval period, conditions and requirements can vary greatly. Cities are increasingly using zoning as a control instrument to enforce additional requirements such as the creation of infrastructure (kindergar - tens, transport links), green spaces or affordable housing. These urban development contracts often place high material demands on project developers and must be taken into account in the overall economic viability of the project. In addition, municipalities are increasingly intro - ducing short-term rental restrictions to control the impact of platforms like Airbnb on local hous - ing markets. These regulations aim to prevent the conversion of long-term residential properties into short-term rentals, which can exacerbate housing shortages and drive up rental prices. Project developers must now also factor in the potential for local restrictions on short-term rent - als, which could affect the financial returns of residential developments and impact long-term urban planning strategies. Such restrictions are becoming an essential element in balancing the needs for housing availability, tourism and urban living quality. Legal Challenges in Construction Law – Sustainability As a Legal Benchmark Last but not least, continuous amendments to building regulations and the growing importance of climate protection are also having an impact on the legal framework. In several federal states – particularly in Vienna – new requirements have been introduced in recent years that focus on minimum ecological standards. These include, eg, the obligation to green flat roofs, the instal - lation of photovoltaic systems in new buildings and the reduction of sealed surfaces. The crea - tion of mobility concepts (eg, car sharing, bicycle
parking spaces, reduced parking space require - ments) is also increasingly being demanded. These building regulations lead to significantly higher costs and technical complexity in the planning and implementation of construc - tion projects. At the same time, they increase dependence on official approvals and can have a major impact on the feasibility of projects. Pro - ject developers therefore have to deal not only with economic and architectural aspects, but also with an increasingly dynamic and complex legal environment. Commercial Real Estate Market and Digitalisation – Development, Challenges and Legal Framework The commercial real estate market is also under - going radical change. The office segment is strongly influenced by the trend towards home offices and hybrid forms of work, such as co- working. Companies are increasingly looking for high-quality, flexible and ESG-compliant space. Locations with good public transport links, mod - ern technical facilities and a high quality of life are particularly in demand. Older properties that do not meet these requirements are becoming less attractive, which is likely to lead to a market shakeout in the medium term. Commercial tenancy law Of particular legal relevance here is commercial tenancy law, which, unlike residential tenancy law, is not governed by the Tenancy Law Act (MRG) but is largely determined by freedom of contract. Nevertheless, certain provisions of the General Civil Code (ABGB) – in particular those relating to liability for defects, protection against termination and commercial leases – must be observed. In economically difficult times, dis - putes over rent reductions due to limited usa - bility of business premises – for example, as a
89
CHAMBERS.COM
Powered by FlippingBook