The construction and real estate sector was either directly or indirectly linked to €84.8 billion of Austria’s economic output in 2023, according to new analysis by the Institute for Austrian Economics (iföw).
This equates to around 20% of Austria’s total economic output, it noted.
Construction industry revenues amounted to €154.3 billion in Austria in 2023, while 1.1 million jobs were either directly or indirectly dependent on the construction and real estate industry.
Economic driver
“The construction industry generates an impressive 12% of value added in Austria; including indirect effects, this figure rises to around 20%,” commented economist and iföw study author Dr. Anna Kleissner. “As an economic driver and in official statistics, the sector is therefore systematically underestimated.”
The study examined 30 construction-related economic sectors, including building construction, civil engineering, ancillary trades, building materials, machinery, architecture, trade, education and the public sector, measuring indirect effects through supply chains and induced effects resulting from consumption and investment generated by incomes and profits across the sector.
As it found, construction activity generated €14.8 billion in direct gross value added through the ancillary construction sector, while building renovation generated total annual gross value added of €5.5 billion.
Construction activity contracted for four consecutive years between 2022 and 2025, including a 5.9% decline in 2024.
The Austrian Institute of Economic Research (WIFO) recently revised its forecast for construction in 2026 from growth of 0.1% to a contraction of 0.2%. Growth of 1% is forecast for 2027.
‘Development potential’
“With the right regulatory incentives, the existing growth and development potential of the real estate and construction industry can be unlocked, strengthening the entire economic landscape,” added Georg Bursik, CEO of the Federal Association of Real Estate Companies (FBI).
“In addition to new construction and densification, the renovation of existing buildings is a key lever. Building renovation generates a total of €5.5 billion in gross value added annually. The need for renovation in Austria remains very high, but a lack of predictability and bureaucratic hurdles are hindering the mobilisation of private capital for investment.
“What we urgently need is a regulatory and support system that is predictable, financially viable, socially acceptable, and legally sound. Only in this way can potential be transformed into actual value creation and prosperity. With regard to building and energy efficiency, it also makes sense to always prioritise thermal renovation as the first step in implementing measures.” Read more here.
