AUSTRIA Trends and Developments Contributed by: Christoph Urbanek, Mario Schiavon and Irena Gogl-Hassanin, Urbanek Law
result of structural defects or official require - ments (such as ventilation requirements under workplace regulations) – are becoming more frequent. ESG requirements There is also a growing legal focus on ESG (envi - ronmental, social, governance) requirements, which are not only relevant in the context of the EU Taxonomy Regulation and the Disclosure Regulation (SFDR) for institutional investors, but are also increasingly being regulated in rental agreements. Many modern commercial leases already contain green lease clauses that stipu - late obligations such as data collection, energy saving or the use of environmentally friendly materials. These clauses must be drafted with care, as they may affect both civil law obligations and public law requirements. Retail sector The retail sector, on the other hand, continues to struggle with structural problems. While food- related formats are stable, non-food space in B locations is under particular pressure. The trend is towards smaller-scale usage concepts, revi - talisation of restaurants and bars, and the con - version of vacant retail space for residential or social infrastructure. Building law and zoning law Building law and zoning law are relevant here, as the conversion of commercially used space for residential or social purposes often requires a rezoning in the land use and development plan. In Vienna, this is subject to strict requirements under the Vienna Building Regulations and must be approved by the city. Requirements in the areas of environmental law, traffic law and pub - lic participation procedures must also be taken into account on a regular basis. Monument pro -
tection can also be an obstacle to conversion, especially in inner-city old buildings. Logistics By contrast, the logistics market remains sta - ble, benefiting from the e-commerce boom and Vienna’s location as a hub for Central and East - ern Europe. Demand is particularly strong in the southeastern suburbs and in the area around Vienna International Airport. From a legal perspective, the main issues to consider in this context are those relating to industrial plant law (Section 74 et seq of the Ger - man Trade Regulation Act (GewO) and environ - mental impact assessments (EIA)). Storage and logistics centres generally require a commer - cial licence and are often subject to additional requirements such as noise or traffic assess - ments. Projects with certain thresholds (eg, in terms of area or traffic volume) may also trigger an EIA requirement, which is associated with considerable procedural hurdles. Compliance with these regulations is crucial not only for the realisation but also for the continued existence of such properties. Digitalisation Another trend shaping the Vienna market is the increasing digitalisation of the real estate industry. PropTech companies offer innovative solutions for digital management, ESG report - ing, smart metering and Building Information Modelling/BIM-based planning. Digitalisation is becoming particularly relevant in connection with energy efficiency and CO₂ monitoring – both essential components for the taxonomy compli - ance of real estate. From a legal perspective, new requirements arise from data protection law (GDPR), particu - larly in connection with smart building technolo -
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