Following three years of continuous contraction, the Austrian construction industry is showing signs of recovery and is expected to grow in real terms by 0.8% in 2025, supported by falling interest rates, which is stimulating an increase in new orders for housing construction, coupled with government investment in transport infrastructure and energy projects. According to the latest data released by Statistics Austria, the country’s construction new orders index grew by 5% year on year (YoY) in the first four months of 2025, driven by strong growth of 14.1% in the civil engineering sector. According to the Central Bank of Austria, Oesterreichische Nationalbank (OeNB), new loans for housing purposes grew by 60.6% YoY in the first five months of 2025, supported by falling interest rates which have led to increase in demand for housing loans. However, a rising budget deficit, a weak construction labor market and increasing labor costs are likely to weigh on the growth of the construction industry over the short to medium terms. According to Eurostat, the average employment in the construction industry declined by 3% in 2024 and the labor cost index increased by 9.1% during the same period.
Over the remainder of the forecast period, the Austrian construction industry is expected to register an annual average growth rate of 2.6% between 2026 and 2029, supported by public and private investments to develop the transport and renewable energy infrastructure, coupled with the government’s aim to produce 100% of the country’s electricity through renewable energy sources by 2030. In line with this, in March 2025, the local renewable energy company Burgenland Energie launched the "Project Tomorrow", which is a flagship initiative to develop a 2,000MW portfolio of wind and solar projects across Burgenland by 2030; this is equivalent to around 20% of Austria’s current renewable capacity.
Over the remainder of the forecast period, the Austrian construction industry is expected to register an annual average growth rate of 2.6% between 2026 and 2029, supported by public and private investments to develop the transport and renewable energy infrastructure, coupled with the government’s aim to produce 100% of the country’s electricity through renewable energy sources by 2030. In line with this, in March 2025, the local renewable energy company Burgenland Energie launched the "Project Tomorrow", which is a flagship initiative to develop a 2,000MW portfolio of wind and solar projects across Burgenland by 2030; this is equivalent to around 20% of Austria’s current renewable capacity.
The Construction in Austria - Key Trends and Opportunities to 2029 (H2 2025) report provides detailed market analysis, information, and insights into the Austrian construction industry, including:
- The Austrian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Austrian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Austria. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Austria, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
