NACE 68.1 – Buying and Selling of Own Real Estate | Public Tenders

Definition: NACE 68.1 covers the buying and selling of own land and buildings by companies that acquire and dispose of these properties for their own account. In a public context, this group is particularly relevant for land transactions between public bodies and private investors as well as for portfolio sales of public real estate.

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 68.1 cover?

NACE 68.1 (Buying and selling of own real estate) classifies companies that acquire and dispose of real estate for their own account — an economic activity that, in the public sphere, is particularly important in the context of property disposal, urban development and public-private partnerships.

Group 68.1 within Section L (Real estate activities) and Division 68 is broken down into two classes:

Public contracting authorities act in the NACE 68.1 area both as sellers (e.g. Federal Real Estate Company, municipal property offices) and as buyers of land for public infrastructure projects. Of particular importance is the disposal of properties released as a result of administrative reforms or troop reductions (former military sites).

Public Tenders: Sector NACE 68.1

The buying and selling of public real estate is an important segment of public procurement and disposal — land transactions by public bodies are frequently relevant under public procurement and state aid law and are subject to transparency requirements.

Typical types of contract

• Land purchase for infrastructure projects: Acquisition of land for road, rail or school construction projects by public contracting authorities
• Property disposal: Sale of dispensable federal properties, municipal land and former barracks sites
• Awards of leasehold rights: Award of leasehold rights on public land for housing or commercial use
• Bidding procedures for development sites: Competitive land awards with urban planning quality objectives (so-called concept-based tenders)
• Acquisition of land for nature conservation: Purchase of ecological areas by federal, regional or municipal territorial authorities

Thresholds and procedure types

Land purchases and sales are in principle not subject to classical public procurement law, as they are classified as real estate transactions and not as service contracts. However, state aid requirements (EU state aid law, Article 107 TFEU) can require a market-based price determination — in practice frequently via expert opinions or competitive procedures.

Relevant CPV codes for NACE 68.1

Where services are tendered in connection with land transactions (e.g. valuation services, brokerage services), the following CPV codes are used.

Current tenders with these CPV codes can be found on TED (Tenders Electronic Daily) as well as on national procurement platforms.

Who is NACE 68.1 relevant for in public procurement?

Public contracting authorities

At federal level, in Austria the Federal Real Estate Company (BIG) and ARE Austrian Real Estate GmbH are the central actors in the administration and disposal of public real estate. In Germany, the Institute for Federal Real Estate (BImA) performs this function. At municipal level, property offices, urban development companies and municipal housing companies are active. All these bodies are, in disposal procedures, bound by the principle of market-value disposal in order to comply with EU state aid law.

Companies and bidders

Project developers, real estate funds and investors wishing to participate in public real estate disposals must typically:

• Creditworthiness and financing evidence: Equity evidence, bank guarantees or financing confirmations
• Conceptual qualification: For concept-based tenders, evidence of comparable reference projects
• Urban planning quality objectives: Evidence of willingness to implement agreed use concepts (e.g. social housing, commercial share)
• Land value and contaminated site expertise: Specialist knowledge in dealing with contaminated sites

NACE 68.1 in context: Section L and Division 68

NACE 68.1 is part of Division 68 (Real estate activities) within Section L — one of the economically significant segments in the public sector.

• NACE L – Real estate activities: Parent section
• NACE 68 – Real estate activities: Division covering all real estate activities
• NACE 68.2 – Renting and operating of own or leased real estate: Renting by public bodies
• NACE 68.3 – Real estate activities on a fee or contract basis: Facility management and property administration

Frequently Asked Questions on NACE 68.1 and public tenders

Are land purchases by public bodies subject to public procurement law? Land purchases and sales are generally exempt from public procurement law (cf. section 107 GWB, section 10 BVergG 2018). However, state aid principles must be observed: sales below market value can constitute unlawful state aid.

What is a concept-based tender? Concept-based tenders (also known as concept awards) are competitive procedures in which municipalities allocate land not at the highest price but on the basis of quality criteria (e.g. share of social housing, architectural quality, use concept). They are particularly common in large cities with tight housing markets.

How is market value determined in public real estate sales? Generally by independent expert opinions. The European Commission has established in its communication on state aid in land sales (1997/C 209/03) that, where a duly competitive procedure with sufficient bids takes place, there is in principle no aid concern.

What role does the BImA (Germany) play in public real estate? The Institute for Federal Real Estate (BImA) administers around 36,000 federal properties. Sales are in principle made at market value. For municipal housing, discount options are available under the discount decree.

Last updated: January 2026 All information is provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.