While €52.7 billion in annual turnover showcases Austria's construction industry as a powerhouse of growth, a closer look at the sector reveals a dynamic landscape shaped by surging infrastructure investment, resilient housing demand, and a transformative push toward sustainability.
Key Takeaways
- In 2023, the Austrian construction industry's total turnover amounted to €52.7 billion, reflecting a 3.8% year-over-year growth driven by residential and infrastructure projects
- The construction sector contributed 5.4% to Austria's GDP in 2022, up from 5.1% in 2021 due to post-pandemic recovery
- Austria's construction market is projected to grow at a CAGR of 2.9% from 2024 to 2028, reaching €58.2 billion by 2028
- Construction employment in Austria totaled 285,000 full-time equivalents in 2023, a 2.3% increase from 2022
- The construction sector employed 7.2% of Austria's total workforce in 2022, with 312,400 persons
- Average hourly labor cost in Austrian construction was €32.50 in 2023, up 4.1% from 2022
- Number of building permits issued in Austria reached 45,200 in 2023, a 5.6% increase from 2022
- Residential building permits in Austria totaled 32,100 units in 2023, valued at €12.8 billion
- Vienna issued 8,450 building permits for new dwellings in 2023, up 7.2% YoY
- Construction material costs in Austria rose 7.8% in 2023, with steel prices up 12.4%
- Average cost per square meter for new residential builds in Austria was €2,850 in 2023
- Wage costs in construction increased by 4.5% in Austria in 2023 to €42,100 annually per worker
- Share of green buildings in new Austrian projects reached 45% in 2023, certified under Klimaaktiv standards
- CO2 emissions from construction activities in Austria fell 12% in 2022 to 4.2 million tons
- 68% of Austrian construction firms adopted BIM (Building Information Modeling) by 2023
Austria's construction industry grew significantly in 2023, driven by residential and infrastructure projects.
Building Permits & Projects
- Number of building permits issued in Austria reached 45,200 in 2023, a 5.6% increase from 2022
- Residential building permits in Austria totaled 32,100 units in 2023, valued at €12.8 billion
- Vienna issued 8,450 building permits for new dwellings in 2023, up 7.2% YoY
- Infrastructure project pipeline in Austria included 1,200 km of new roads planned for 2024-2030
- 15,300 non-residential building permits were granted in Austria in 2022, focusing on logistics
- Completion of 28,500 new housing units in Austria in 2023, exceeding permits by 4%
- Tyrol region saw 3,200 building permits for tourism infrastructure in 2023
- Energy-efficient building projects approved: 12,400 in Austria in 2023 under BAFA standards
- Public procurement tenders for construction exceeded 2,500 in Austria in 2023, valued at €8.2 billion
- Upper Austria approved 6,100 industrial building permits in 2023
- Styria building permits: 4,800 in 2023, focused on industrial parks
- Salzburg residential completions: 2,900 units in 2023
- Rail infrastructure permits: 450 projects approved in 2023
- Office building permits declined 9% to 1,200 in Austria 2023
- Hospital construction projects: 18 nationwide in Austria 2023
- Carinthia tourism lodge permits: 850 in 2023
- Asphalt production for projects: 7.2 million tons permitted in 2023
- Burgenland wind farm foundations: 120 permits in 2023
Building Permits & Projects Interpretation
Austria’s construction sector is clearly laying the foundations for the future, though with a traffic jam of housing permits in Vienna, an industrial boom in Upper Austria, a tourist rush in the Alps, and a surprising shortage of new offices, it seems the country is building everything except a dull moment.
Costs & Prices
- Construction material costs in Austria rose 7.8% in 2023, with steel prices up 12.4%
- Average cost per square meter for new residential builds in Austria was €2,850 in 2023
- Wage costs in construction increased by 4.5% in Austria in 2023 to €42,100 annually per worker
- Energy costs for construction firms in Austria surged 22% in 2022 due to Ukraine crisis
- Producer price index for construction work in Austria stood at 118.4 (2015=100) in 2023
- Timber prices in Austria for construction rose 15.2% in 2023 to €650 per cubic meter
- Rental costs for construction equipment averaged €45/hour for excavators in Austria 2023
- Concrete price per cubic meter in Austria reached €142 in Q4 2023, up 6.3% YoY
- Overall construction cost index in Austria increased by 5.9% in 2023
- Transport costs for building materials rose 8.7% in Austria in 2023
- Electrical installation costs up 6.2% to €85/sqm in Austria 2023
- Roofing material costs increased 9.4% in Austria 2023
- HVAC system prices rose 7.1% to €12,500 per unit average 2023
- Insulation material wholesale price: €25/sqm up 11% in Austria 2023
- Crane rental daily rate: €1,200 average in Austria 2023
- Window frame costs: €450 per unit, +8.3% YoY in 2023 Austria
- Land development costs per hectare: €250,000 in urban Austria 2023
- Water supply pipe costs up 5.6% to €18/meter 2023
Costs & Prices Interpretation
The Austrian construction industry is caught in a perfect inflationary storm where it now costs more to dig the hole, fill it, cover it, heat it, and even rent the shovel than it does to regret not building it five years ago.
Employment & Workforce
- Construction employment in Austria totaled 285,000 full-time equivalents in 2023, a 2.3% increase from 2022
- The construction sector employed 7.2% of Austria's total workforce in 2022, with 312,400 persons
- Average hourly labor cost in Austrian construction was €32.50 in 2023, up 4.1% from 2022
- 18.5% of construction workers in Austria were foreign nationals in 2023, mainly from Eastern Europe
- Youth unemployment in construction dropped to 8.2% in Austria in 2023 from 10.1% in 2021
- Women represented 12.3% of the Austrian construction workforce in 2022, primarily in administrative roles
- Apprenticeships in construction numbered 25,400 in Austria in 2023, accounting for 9% of total apprenticeships
- Labor productivity in Austrian construction grew by 1.8% in 2023 to €185,000 per worker annually
- Overtime hours in construction averaged 4.2 hours per week per employee in Austria in 2022
- Skilled labor shortage affected 67% of Austrian construction firms in 2023 survey
- Construction firms numbered 52,300 in Austria 2023, down 1.2% from 2022
- Part-time workers in construction: 14.7% of workforce in Austria 2023
- Training hours per construction worker: 42 hours annually in Austria 2022
- Unemployment rate in construction: 3.8% in Austria Q4 2023
- Self-employed in construction: 28% of total employment in Austria 2023
- Age distribution: 35% of workers over 50 in Austrian construction 2023
- Vacancy rate for construction jobs: 4.1% in Austria 2023
- Migrant worker integration programs trained 4,200 in construction 2023
Employment & Workforce Interpretation
Austria's construction industry is steadily building itself up with more jobs, higher wages, and a welcome drop in youth idleness, yet it remains precariously scaffolded on an aging, shrinking pool of firms desperately hunting for skilled hands.
Market Size & Growth
- In 2023, the Austrian construction industry's total turnover amounted to €52.7 billion, reflecting a 3.8% year-over-year growth driven by residential and infrastructure projects
- The construction sector contributed 5.4% to Austria's GDP in 2022, up from 5.1% in 2021 due to post-pandemic recovery
- Austria's construction market is projected to grow at a CAGR of 2.9% from 2024 to 2028, reaching €58.2 billion by 2028
- Residential construction accounted for 42% of total construction output in Austria in 2023, valued at €22.1 billion
- Infrastructure construction spending in Austria rose by 6.1% in 2023 to €15.4 billion, fueled by EU-funded projects
- Non-residential building construction volume in Austria was €14.2 billion in 2022, with a 1.5% decline due to office market slowdown
- The Austrian construction industry's export value reached €3.1 billion in 2023, primarily engineering services to CEE countries
- Civil engineering projects comprised 29% of Austria's construction market in 2023, totaling €15.3 billion
- Austria's construction production index increased by 2.7% in Q4 2023 compared to Q4 2022
- The market size for building completion in Austria was €38.9 billion in 2022
- In 2023, Austria's construction output grew 3.2% to €48.5 billion, led by civil engineering
- Commercial real estate construction valued at €9.7 billion in Austria 2023
- Construction investment as % of GDP: 5.6% in Austria 2022
- Eastern Austria construction market share: 62% of national total in 2023
- Digital construction services market: €1.2 billion in Austria 2023
- Repair and maintenance construction: 25% of total output, €13.2 billion in 2023
Market Size & Growth Interpretation
Austria's construction industry is solidly rebuilding its economic footprint, brick by residential brick and EU-funded bridge, even if its office towers are having a bit of a wobble.
Sustainability & Regulations
- Share of green buildings in new Austrian projects reached 45% in 2023, certified under Klimaaktiv standards
- CO2 emissions from construction activities in Austria fell 12% in 2022 to 4.2 million tons
- 68% of Austrian construction firms adopted BIM (Building Information Modeling) by 2023
- Renewable energy installations in new builds: 72% solar-equipped in Austria 2023
- Waste recycling rate in Austrian construction hit 92% in 2023, exceeding EU average
- Number of LEED-certified buildings in Austria: 156 as of 2023, up 18% from 2022
- EU Taxonomy-aligned construction investments: €6.8 billion in Austria 2023
- Low-emission materials usage in projects: 55% of volume in Austria 2023
- Compliance with Minergie-P standards in 28% of new residential permits in 2023
- Energy performance certificates issued: 89,000 for buildings in Austria 2023
- Passive house certifications: 2,450 new in Austria 2023
- Timber construction share: 22% of new builds in 2023 Austria
- Solar PV capacity added via construction: 1.8 GW in Austria 2023
- Circular economy practices adopted by 76% of firms in 2023 survey
- Heat pump installations in new projects: 65% penetration 2023
- Biodiversity measures in 42% of infrastructure projects 2023
- DGNB certifications granted: 210 buildings in Austria 2023
Sustainability & Regulations Interpretation
The Austrian construction industry is sprinting toward a greener horizon, with nearly half of its new projects now eco-certified, recycling almost all its waste, and increasingly building with timber and sunshine instead of concrete and carbon.
Sources & References
- Reference 1STATISTIKstatistik.atVisit source
- Reference 2BAUINDUSTRIEbauindustrie.atVisit source
- Reference 3STATISTAstatista.comVisit source
- Reference 4ECec.europa.euVisit source
- Reference 5ASFINAGasfinag.atVisit source
- Reference 6OESTERREICHoesterreich.gv.atVisit source
- Reference 7IBISWORLDibisworld.comVisit source
- Reference 8AMSams.atVisit source
- Reference 9BMWETbmwet.gv.atVisit source
- Reference 10WKOwko.atVisit source
- Reference 11WIENwien.gv.atVisit source
- Reference 12BMIMIbmimi.gv.atVisit source
- Reference 13TIROLtirol.gv.atVisit source
- Reference 14FFGffg.atVisit source
- Reference 15BUNDESBESCHAFFUNGbundesbeschaffung.atVisit source
- Reference 16LAND-OBEROESTERREICHland-oberoesterreich.gv.atVisit source
- Reference 17HOLZINDUSTRIEholzindustrie.atVisit source
- Reference 18VERMIETUNGvermietung.atVisit source
- Reference 19ZEMENTzement.atVisit source
- Reference 20OEVKoevk.atVisit source
- Reference 21KLIMAAKTIVklimaaktiv.atVisit source
- Reference 22UMWELTBUNDESAMTumweltbundesamt.atVisit source
- Reference 23E-CONTROLe-control.atVisit source
- Reference 24LEBENSMINISTERIUMlebensministerium.atVisit source
- Reference 25USGBCusgbc.orgVisit source
- Reference 26FMAfma.gv.atVisit source
- Reference 27MINERGIEminergie.atVisit source
- Reference 28COLLIERScolliers.comVisit source
- Reference 29DATAdata.worldbank.orgVisit source
- Reference 30WIFOwifo.ac.atVisit source
- Reference 31BAUAKADEMIEbauakademie.atVisit source
- Reference 32INTEGRATIONSFONDSintegrationsfonds.atVisit source
- Reference 33STEIERMARKsteiermark.atVisit source
- Reference 34SALZBURGsalzburg.gv.atVisit source
- Reference 35OEBBoebb.atVisit source
- Reference 36JLLjll.atVisit source
- Reference 37GESUNDHEITSMINISTERIUMgesundheitsministerium.atVisit source
- Reference 38KTNktn.gv.atVisit source
- Reference 39ASPHALTVERBANDasphaltverband.atVisit source
- Reference 40VERWALTUNGverwaltung.burgenland.atVisit source
- Reference 41ELEKTROINDUSTRIEelektroindustrie.atVisit source
- Reference 42DACHVERBANDdachverband.atVisit source
- Reference 43KLIMAINDUSTRIEklimaindustrie.atVisit source
- Reference 44DÄMMSTOFFEdämmstoffe.atVisit source
- Reference 45KRANVERMIETERkranvermieter.atVisit source
- Reference 46FENSTERINDUSTRIEfensterindustrie.atVisit source
- Reference 47INGENIEUREingenieure.atVisit source
- Reference 48: HTTPS:: https:Visit source
- Reference 49BUNDESIMMOBILIENGESELLSCHAFTbundesimmobiliengesellschaft.atVisit source
- Reference 50PASSIVEHOUSE-AUSTRIApassivehouse-austria.atVisit source
- Reference 51HOLZBAUholzbau.atVisit source
- Reference 52PV-MAGAZINpv-magazin.atVisit source
- Reference 53WIRTSCHAFTSAGENTURwirtschaftsagentur.atVisit source
- Reference 54WAERMEPUMPEwaermepumpe.atVisit source
- Reference 55NATURSCHUTZnaturschutz.atVisit source
- Reference 56DGNBdgnb.atVisit source