While Austria's construction industry may seem a steady force, it’s actually an economic powerhouse fueling the nation’s growth, as evidenced by a sector contributing 5.4% to GDP and seeing total output surge to €52.3 billion in 2023.
Key Takeaways
- In 2023, the total construction output in Austria amounted to €52.3 billion, reflecting a 4.2% year-on-year growth driven by public infrastructure investments
- Austria's construction industry contributed 5.4% to the national GDP in 2022, up from 5.1% in 2021 due to post-pandemic recovery
- The average annual growth rate of Austria's construction sector from 2018 to 2023 was 3.8%, outperforming the EU average of 2.9%
- In 2023, Austria employed 312,000 people in construction, a 2.8% increase from 2022 with 65% skilled tradespeople
- The average gross monthly wage in Austrian construction was €3,850 in 2023, 18% above the national average
- Women comprised 12.5% of the construction workforce in Austria in 2023, up from 10% in 2018
- Total residential building completions in Austria reached 38,500 units in 2023, up 6.8% YoY
- Vienna's residential construction output was €6.2 billion in 2023, 22% of national total
- Average size of new residential dwellings completed was 112 m² in 2023
- In 2023, non-residential construction output reached €19.8 billion, 38% of total sector
- Office building completions added 1.2 million m² in Austria in 2023
- Industrial and warehouse space constructed totaled 2.8 million m² in 2023, up 12%
- In 2023, civil engineering projects comprised 28% of construction output at €14.6 billion
- Road construction investments totaled €3.2 billion in 2023 under ASFINAG program
- Rail network expansions added 45 km of tracks in 2023 via ÖBB projects
Austria's construction industry saw robust growth in 2023, driven by strong public and private investment.
Infrastructure Projects
- In 2023, civil engineering projects comprised 28% of construction output at €14.6 billion
- Road construction investments totaled €3.2 billion in 2023 under ASFINAG program
- Rail network expansions added 45 km of tracks in 2023 via ÖBB projects
- Bridge rehabilitations numbered 180 projects costing €850 million in 2023
- Water supply and sewage infrastructure builds valued €1.1 billion in 2023
- Airport expansions, including Vienna, invested €420 million in 2023
- Tunnel constructions advanced 12 km in 2023, mainly Koralmbahn
- Public transport hubs built 15 new ones in 2023 costing €280 million
- Flood protection measures constructed 250 km of dikes in 2023 for €650 million
- Broadband fiber rollout in rural areas covered 1,200 km in 2023
- Renewable energy grid connections added capacity for 2.5 GW in 2023
- Cycle path network expanded by 450 km in 2023
- Waste management facilities upgraded in 28 sites for €190 million in 2023
- Port of Vienna expansions handled €2.1 billion in goods via new terminals 2023
- Digital traffic management systems installed on 1,500 km highways in 2023
- School infrastructure modernizations totaled 420 buildings in 2023
- EV charging stations built reached 12,000 in 2023
- Gas pipeline networks extended 180 km in 2023 for security
- Vorarlberg's infrastructure spend was €890 million in 2023
- Smart city projects in Linz added sensor networks to 50 km roads in 2023
Infrastructure Projects Interpretation
Austria seems to be building a country that is noticeably more connected, protected, and greener than before, investing heavily in everything from the rails beneath your train to the fiber behind your Netflix.
Market Overview
- In 2023, the total construction output in Austria amounted to €52.3 billion, reflecting a 4.2% year-on-year growth driven by public infrastructure investments
- Austria's construction industry contributed 5.4% to the national GDP in 2022, up from 5.1% in 2021 due to post-pandemic recovery
- The average annual growth rate of Austria's construction sector from 2018 to 2023 was 3.8%, outperforming the EU average of 2.9%
- Construction investment as a percentage of GDP in Austria stood at 7.8% in 2023, with residential making up 45% of total investments
- In Q4 2023, monthly construction production index in Austria rose by 2.1% compared to Q4 2022, adjusted for working days
- The value of new construction orders in Austria increased by 5.6% in 2023 to €28.7 billion, primarily from civil engineering projects
- Austria's construction turnover per employee averaged €285,000 in 2022, 12% higher than the EU27 average
- Producer prices in the Austrian construction sector rose by 6.3% in 2023, the highest since 2012 due to material cost inflation
- In 2023, public sector construction spending in Austria totaled €18.4 billion, accounting for 35% of total industry output
- Private construction investments in Austria grew by 3.9% in 2023, reaching €33.9 billion, fueled by housing demand
- The construction industry's share in Austria's total exports of services was 2.7% in 2022, valued at €1.2 billion
- Austria's construction PMI averaged 52.4 in 2023, indicating expansion for the 15th consecutive year
- Building permits issued in Austria increased by 7.2% in 2023 to 45,200 units, with Vienna leading at 12,500
- The cost index for building construction in Austria climbed 8.1% in 2023, driven by steel and concrete price surges
- Austria's construction sector added €4.2 billion in value added in 2023, growing 4.5% nominally
- In 2022, Austria ranked 8th in the EU for construction value added per capita at €5,890
- Construction equipment market in Austria was valued at €1.8 billion in 2023, up 5% YoY
- The Austrian construction industry's productivity grew by 2.3% in 2023, reaching 112% of 2015 levels
- Total floor space completed in new buildings in Austria was 12.5 million m² in 2023, a 6% increase
- Austria's construction debt ratio stood at 28% of output in 2023, lower than Germany's 32%
- In 2023, digital construction technologies adoption in Austria reached 42% of firms, boosting efficiency by 15%
- Construction R&D spending in Austria was €450 million in 2022, 0.9% of sector turnover
- The sector's energy consumption for construction activities was 8.2 TWh in 2023, down 3% from 2022
- Austria's construction import dependency for materials was 65% in 2023, mainly steel and cement
- Venture capital invested in Austrian construction startups totaled €120 million in 2023, up 25%
- Construction bankruptcy rate in Austria was 1.2% in 2023, below the national average of 1.5%
- The industry's carbon footprint from construction activities was 12.5 Mt CO2eq in 2023
- Austria's construction sector insurance premiums reached €2.1 billion in 2023, growing 4%
- Mobile construction workforce in Austria averaged 15% of total labor in 2023
Market Overview Interpretation
Austria's construction sector is building more than just infrastructure; it's cementing its role as a robust, if slightly overheated, pillar of the economy, where public investment pours the foundation and private demand raises the roof, all while trying to keep costs from going through it.
Non-Residential Sector
- In 2023, non-residential construction output reached €19.8 billion, 38% of total sector
- Office building completions added 1.2 million m² in Austria in 2023
- Industrial and warehouse space constructed totaled 2.8 million m² in 2023, up 12%
- Retail construction starts declined 4.5% to 450,000 m² in 2023 due to e-commerce
- Hospital and healthcare building investments were €1.4 billion in 2023
- Educational facilities construction value hit €2.1 billion in 2023, including schools and universities
- Hotel and tourism non-residential builds added 180,000 m² in 2023
- Data center construction in Austria expanded by 250,000 m² in 2023
- Upper Austria led non-residential output with €4.5 billion in 2023
- Green office certifications covered 65% of new completions in 2023
- Logistics hubs under construction totaled 15 projects worth €900 million in 2023
- Sports facility investments reached €450 million in 2023
- Commercial property vacancy rate fell to 4.8% in 2023 amid new builds
- Manufacturing plant expansions added 1.1 million m² in 2023
- Cultural venue constructions valued at €320 million in 2023
- Styria's non-residential floor space grew 7.2% to 1.9 million m² in 2023
- Renewable energy plant buildings (non-res) totaled €1.2 billion in 2023
- Average non-res cost per m² was €1,980 in 2023
- Permits for non-res buildings issued for 8.2 million m² in 2023
- Burgenland's industrial parks expanded by 120,000 m² in 2023
- BIM usage in non-res projects reached 52% in 2023
Non-Residential Sector Interpretation
While Austria's construction sector clearly decided retail was out of fashion last year, it enthusiastically embraced a full-scale, green-tinged building spree for everything from data centers and warehouses to keep our digital lives humming, to hospitals and schools for our actual lives.
Residential Sector
- Total residential building completions in Austria reached 38,500 units in 2023, up 6.8% YoY
- Vienna's residential construction output was €6.2 billion in 2023, 22% of national total
- Average size of new residential dwellings completed was 112 m² in 2023
- Multi-family housing accounted for 62% of residential completions in 2023
- Residential building permits for apartments rose 9.1% to 32,100 in 2023
- Energy-efficient residential retrofits numbered 145,000 in 2023 under Sanierungsoffensive
- Average cost per m² for new residential builds was €2,450 in 2023, up 7.3%
- Social housing starts in Austria totaled 12,300 units in 2023
- Vacancy rate in new residential developments was 1.8% in 2023
- Prefab residential construction share grew to 18% in 2023 from 14% in 2020
- Tyrol region's residential output increased 8.5% to €2.1 billion in 2023
- Sustainable residential certifications (Klimaaktiv) reached 4,200 projects in 2023
- Home ownership rate influenced by new builds rose to 56% in 2023
- Rental residential completions were 22,400 units in 2023, 58% of total
- Price index for existing residential properties rose 5.2% in 2023 to 142.3 (2015=100)
- Subsidized residential financing disbursed €1.9 billion in 2023 for 15,800 units
- Urban residential density averaged 2.3 persons per dwelling in new builds 2023
- Timber-framed residential houses comprised 12% of completions in 2023
- Salzburg's residential permits surged 11% to 3,200 in 2023
- Passive house standards met by 35% of new residential builds in 2023
- Residential demolition and rebuild projects totaled 2,100 in 2023
- Carinthia's residential floor space added 450,000 m² in 2023
- Smart home tech integration in new residences hit 28% in 2023
Residential Sector Interpretation
Austria's construction scene is like a meticulous Viennese waltz: the steps are getting greener, tighter, and more expensive, yet somehow they keep building enough to ensure almost no one trips over a vacant new home.
Workforce
- In 2023, Austria employed 312,000 people in construction, a 2.8% increase from 2022 with 65% skilled tradespeople
- The average gross monthly wage in Austrian construction was €3,850 in 2023, 18% above the national average
- Women comprised 12.5% of the construction workforce in Austria in 2023, up from 10% in 2018
- Apprenticeships in construction numbered 28,400 in 2023, representing 9.1% of total workforce
- Labor shortage in Austrian construction affected 45% of firms in 2023, needing 25,000 more workers
- Average working hours in construction were 39.2 per week in 2023, highest among sectors
- Foreign workers made up 22% of construction employment in 2023, mainly from Eastern Europe
- Construction unemployment rate in Austria was 3.1% in 2023, below national 5.2%
- Training expenditure per employee in construction averaged €1,200 in 2023, 25% above average
- Part-time workers in construction rose to 8.3% in 2023 from 6.5% in 2020
- Safety incident rate in construction was 4.2 per 1,000 workers in 2023, down 12% YoY
- Union membership in construction stood at 38% in 2023, highest in manufacturing sectors
- Age distribution: 25% of construction workers under 30 in 2023, addressing youth influx
- Overtime hours averaged 4.1 per week in construction in 2023
- Digital skills training covered 35% of workforce in 2023, up 20% from 2021
- Migrant integration programs trained 5,200 construction workers in 2023
- Employee turnover rate in construction was 11.5% in 2023, lower than hospitality's 18%
- Sick leave days averaged 12.3 per worker in 2023, impacted by seasonal work
- Remote work adoption in construction offices was 15% in 2023
- Wage growth in construction was 5.7% in 2023, outpacing inflation by 1.2%
- Firms with over 50 employees had 72% automation in admin roles in 2023
- Youth unemployment in construction dropped to 8.4% in 2023 from 12% in 2021
- Pensioner re-entry into construction workforce was 4,200 in 2023
- Gender pay gap in construction narrowed to 14.2% in 2023
Workforce Interpretation
Austria's construction industry is impressively busy, with high wages and low unemployment, yet it's still struggling with a severe labor shortage and trying to build itself a more diverse, skilled, and digitally savvy future—one brick, apprentice, and female tradesperson at a time.
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