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Austria construction industry faces prolonged crisis
The Austrian construction industry is experiencing its longest crisis in decades, with real construction production having fallen by 12 percent since 2020. Experts predict the sector will likely shrink for a fifth consecutive year in 2026, driven primarily by a collapse in residential construction. While non-residential and civil engineering sectors have shown more stability or growth, the residential sector saw a real decline of 30 percent.
Market analyst Andreas Kreutzer of Branchenradar suggests a potential turning point in 2027, provided no unforeseen issues arise. However, due to long lead times, a significant increase in completed residential buildings is not expected until 2029 or 2030.
Economic pressures have been exacerbated by rising costs. Between 2020 and 2025, construction prices rose by approximately one-third, with structural engineering (Hochbau) seeing a 38 percent increase and civil engineering (Tiefbau) increasing by 26 percent. These hikes were initially driven by material shortages and supply chain issues, followed by rising labor costs due to inflation adjustments.
Entities
Andreas Kreutzer · Austria · Branchenradar · Michael Wardian · Verband Österreichischer Betonfertigteilwerke
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The Austrian construction industry is in its longest crisis in decades. kurier.at
- [○ 1 SOURCE] Construction production has decreased by 12 percent since 2020. kurier.at
- [● 2 SOURCES] The construction industry is expected to shrink for the fifth consecutive year in 2026. www.vol.at · kurier.at
- [○ 1 SOURCE] Residential construction (Wohnungsneubau) fell by 30 percent in real terms. www.vol.at
- [○ 1 SOURCE] A real increase in construction completions is not expected until 2029 or 2030. kurier.at
- [○ 1 SOURCE] Civil engineering (Tiefbau) grew by 12 percent in real terms. www.vol.at
- [● 2 SOURCES] Construction prices in structural engineering (Hochbau) rose by 38 percent between 2020 and 2025. www.vol.at · kurier.at
- [○ 1 SOURCE] 47% of surveyed concrete precast companies reported a revenue decline in the first half of 2026 compared to the previous year. medianet.at