+43 662 42 34 20 office@bamberger-immobilien.at
Bookmark
Person hält Fragezeichen neben Modellhaus: Symbol für Änderungen in der Branche 2026

Key changes in the real estate sector in 2026 at a glance

  • New tenancy law from 1 January 2026: Rent increases permitted only once per year, on 1 April
  • Index cap: Inflation above 3% may only be passed on at 50%
  • Regulated rents: Maximum increases of 1% (2026) and 2% (2027)
  • Minimum lease term increases from 3 to 5 years for new or renewed agreements
  • Index clauses redefined (ZIAG): Existing contracts should also be reviewed
  • Minimum reserve fund (WEG) increases to €1.13/m²
  • Temporary land register fee exemption for residential property creation until 30 June 2026 (deadlines apply)
  • Financing in 2026: More flexibility after the expiry of KIM regulation, but continued strict credit assessments
  • Energy & ESG: Implementation of the EU Buildings Directive by May 2026 – increasing relevance for valuation and sales
  • Conclusion: 2026 requires precise planning, legal review, and strong timing in real estate decisions

Tenancy law 2026: Restricted indexation and longer lease terms

New regulations for value protection and index adjustments

With the 5th Tenancy Law Inflation Relief Act, the new Rent Value Adjustment Act will come into force on 1 January 2026. This introduces clear and binding rules for rent adjustments:

  • Rent increases are permitted only once per year, fixed on 1 April
  • If relevant inflation exceeds 3%, only half of the excess may be passed on
  • Additional limits apply to regulated rental properties, such as many period buildings or municipal housing:
    • maximum 1% increase as of 1 April 2026
    • maximum 2% increase as of 1 April 2027

Practical impact:
For landlords, this means a more structured and planning-intensive approach to rent adjustments. Tenants, on the other hand, benefit from greater transparency and improved predictability, as strong index fluctuations are mitigated.

Minimum lease term increases to five years

Another key element of the reform concerns the duration of residential lease agreements. The statutory minimum term increases from three to five years and applies to all new or renewed contracts from 1 January 2026 onwards.

Depending on the landlord structure—such as commercial landlords or smaller private portfolios—exceptions and distinctions may apply. A case-by-case assessment is therefore recommended.

Greater legal certainty for index clauses from 2026

At the same time, the Civil Law Indexation Adjustment Act (ZIAG) comes into force. It redefines the admissibility of index clauses, including through the new § 879a of the Austrian Civil Code (ABGB), and explicitly applies to existing rental agreements as well.

The aim is to clearly define under which conditions value adjustment clauses are legally valid—particularly when referencing index values from before the conclusion of the contract. This issue has been a source of legal uncertainty in recent years.

Practical tip:
Landlords should review their existing contract templates and indexation clauses by 2026 and adjust them where necessary.

Condominium ownership: Higher reserve funds from 2026

For condominium owners’ associations, the statutory minimum reserve fund increases from €1.06 to €1.13 per square metre of usable space as of 1 January 2026.

In practice:
If the reserve fund has previously been set at the legal minimum, monthly contributions will increase slightly—affecting all owners equally.

 

Property purchase in 2026: A limited window for transaction cost savings

A key timing factor in 2026 is the temporary exemption from land register fees for the registration of ownership and mortgage rights when creating residential property.

This applies to land register applications submitted no later than 30 June 2026—provided all legal requirements are met.

Important:
This exemption is not automatic. Deadlines, usage requirements (e.g. primary residence), and other legal criteria must be strictly observed.

Financing in 2026: More flexibility, but clear standards remain

With the expiry of the KIM regulation on 30 June 2025, lending conditions in 2026 become somewhat more flexible again. However, the Financial Market Authority continues to expect prudent and responsible mortgage lending.

Key benchmarks—such as 80% loan-to-value, a 40% debt-service ratio, and loan terms of up to 35 years—remain relevant.

Practical impact:
Case-by-case decisions will become more common, but banks will continue to apply strict criteria regarding creditworthiness, equity, and affordability.

Holzwürfel mit der Aufschrift 'Home', im Vordergrund Hausschlüssel

Energy and refurbishment: 2026 as a year of implementation

The revised EU Energy Performance of Buildings Directive (EPBD) must be implemented by 29 May 2026.

For Austria, this means further specification of energy efficiency standards, refurbishment strategies, and sustainability requirements. These factors are becoming increasingly important in property valuation, marketing, and purchase decisions.