Die Presse: Tenancy law should treat old buildings and new developments equally

In his latest guest commentary in Der Presse, our partner Dr Christian Nordberg, LL.M., analyses the reform and highlights its structural limitations:

The reform improves the predictability of rent adjustments by introducing uniform indexation rules. However, the differing legal treatment of old buildings and new developments under tenancy law remains unchanged. Rents for newly built apartments often exceed EUR 20 per square metre, while rents for apartments in old buildings continue to be capped at the statutory reference rent of EUR 6.67 per square metre. These disparities channel investment primarily into new developments, while refurbishment and energy-efficient upgrades of existing buildings are increasingly postponed. Aligning the legal framework for old and new buildings could restore the investment viability of existing properties, safeguard the historic building stock and expand housing supply in the long term.

The full guest commentary is available here (German only).