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Market situation in Austria
Development of the construction industry in Austria
The building sector in Austria employs about 247.000 employees and realizes about 41 billion Euro per year. The construction sector contributes six percent to the gross domestic product of Austria. As many other European countries, the construction sector in Austria suffered for many years by low order inflows after the financial crisis in 2008. In 2016 a recovery started, which will presumably endure.
New growth through the construction of residences
Growth impulses come from the residential construction sector and from the building construction for companies. The Austrian population grew continuously within the past 10 years. Thus, high demand for residences is likely to endure. Positively contributing to the demand of residential construction is the high level of immigration in recent years. The government of the country established a bank for residences and investments through which five billion Euro for the construction of residences shall be provided.
Further growth impulses by public infrastructure investments
Civil engineering in Austria is recovering slower than the other branches. For the future, an increase of construction investment in civil engineering is presumable, as the Austrian government planned higher spending in street and railway construction. Because of Austria’s central geographic location and an increasing traffic volume, the trend to higher infrastructure investments will continue. After Switzerland, Austria invests the most in his railway infrastructure Europe-wide. In 2016 Austria invested 198 Euro per capita in its railways. The planned railway’s construction projects are executed by the ÖBB and Asfinag. Therefore, it is to expect that there will be many construction projects in Austria in the next years.