Building Lease Explained: The 6 Most Important Questions - and Why It Pays Off for Buyers
Building lease at a glance: how you can own a home without bearing the full cost of the land beneath it. In sought-after locations like Vienna's Alte Donau, a building lease is often the smarter route to ownership — tax-efficient, transferable, and valid for up to 100 years. Here are the most important questions, answered.
What does a building lease mean?
Simply put: with a building lease property, you purchase the house or flat and are registered as the owner in the land register. The land itself remains in the ownership of the building lease grantor. In return, you pay a ground rent to the landowner. In Glorit projects, this is typically the City of Vienna or the Augustinian Canons of Klosterneuburg.
What are the advantages for me as a buyer?
Because you're not financing the land, the purchase price is significantly lower than comparable properties in the same location. In particularly desirable areas, a building lease can be a smart way to acquire high-quality property at a genuinely competitive price.
Did you know?
Around 15% of Glorit projects are developed under a building lease — and for good reason. If you want to live on Vienna's Alte Donau, a building lease is often the only way in.
How long does a building lease last?
At Glorit, the standard term is 100 years.
What happens when a building lease expires?
At the end of the agreed term, the building in principle reverts to the landowner. In practice, however, early renewal is usually possible and can be arranged directly with the landowner before expiry.
Can I sell, inherit, or gift a building lease?
Yes. A building lease is fully transferable - on the same terms as before. In concrete terms, this means that the ground rent cannot simply be raised upon sale or inheritance. The only permitted adjustment is index-linked, in line with the contractual terms.
In short: you can pass on a building lease property in exactly the same way as a conventional owner-occupied flat.
Is a building lease worthwhile for investors?
Yes - doubly so. With building lease properties, there are no land costs to factor in. Since you are only acquiring the building itself, 100 % of the acquisition costs can be depreciated for tax purposes.
This gives a noticeably better return compared to investment properties on freehold land, where typically only the building portion - often around 60 % of the purchase price - is depreciable. The land portion offers no tax relief at all.
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