Demands for Political Action from the Austrian Property Owners Association

In a recent gathering of the Austrian House and Property Owners Association (ÖHGB) held in Innsbruck, a resolution was passed outlining key demands directed at policymakers concerning housing and property rights.

The resolution emphasizes the necessity for robust protection and reliability for property owners. It calls for the restoration of legal certainty and trust, asserting that any legally mandated value adjustments should not impose restrictions on private property. Investors require stability and predictability for long-term commitments.

Additionally, the ÖHGB opposes populist blanket measures that adversely affect property owners. Proposed initiatives such as rent controls, specialized indices, or the expansion of the Rent Law (MRG) disproportionately disadvantage landlords. The association argues that addressing social issues should be the responsibility of the public sector, with financial assistance for tenants in difficulty coming from government sources rather than landlords.

The resolution advocates for enabling rather than hindering investments, particularly in the context of climate policy related to existing buildings. The ÖHGB asserts that frameworks should incentivize investments rather than impose penalties, indicating that value adjustments are necessary to finance renovations.

Furthermore, the association stands firmly against the introduction of wealth, gift, and inheritance taxes, highlighting that property ownership is a cornerstone of private retirement planning and societal stability. New taxes, they argue, would burden the middle class and erode trust in the property system.

The ÖHGB also rejects any reform of property tax that could be perceived as a hidden burden. They argue that increasing taxes on real estate to alleviate municipal financial woes would transform this tax into an undesirable wealth and substance levy. The association calls for alternative solutions, particularly through cost-saving measures, rather than adding to the existing array of taxes that municipalities already impose.

In addition, the resolution demands the withdrawal of any surcharge on property reclassifications, arguing that taxation based on hypothetical profits is detrimental to economic performance. They assert that the current property capital gains tax already disproportionately taxes profits when a property is sold, exceeding the taxation of capital assets.

ÖHGB President Martin Prunbauer expressed the need for a stronger recognition of property rights, stating that property in Austria--whether rented or owner-occupied--faces increasing undue pressure. He criticized current policies that weaken property ownership instead of strengthening it, noting that such regulations lead to declines in investment, reduced renovations, and a scarcity of new housing.

Prunbauer insists that a clear political commitment to property rights as a constitutionally protected asset is essential. He emphasized that the private real estate sector is not an adversary but rather a crucial partner in the provision of housing. He concluded by warning that undermining property ownership would ultimately damage the housing market in the long term.

The ÖHGB, representing around 30,000 members across nine regional associations, is the largest voluntary interest group for property owners in Austria. Its primary mission is to protect and promote private property rights and articulate the collective interests of private property owners. The association offers comprehensive legal, tax, insurance, construction, and financing advice, alongside active advocacy on behalf of its members at all political levels.