Building Permits for New Housing Units in Austria 2025-2027

After the massive slump in 2023, the construction industry continued to face pressure in 2024 from high interest rates, the KIM regulation, inflation, and rising construction costs. However, residential construction, which was particularly hard hit, showed initial signs of recovery. The ECB's interest rate reversal starting mid-2024, along with the announced non-extension of the KIM-VO, had a stabilising effect. Positive signals are already emerging: residential property transactions increased significantly, and residential construction loans grew by over 50 percent in early 2025. With demand returning, a recovery in residential construction activity is foreseeable. As part of this project, semi-annual forecasts of residential construction permits in Austria are therefore prepared to enable timely assessment of construction activity as a key leading indicator.