99th Euroconstruct Conference: European Construction Market Outlook until 2027 – Austrian Construction Market Development. Country Report Austria

The economic environment in Austria remains weak, with the country stuck in the longest recession in its post-war history, possibly lasting three years. Although inflation is easing and real incomes are recovering, consumer spending remains subdued due to high savings rates and economic uncertainty. Consequently, investment in equipment and construction has been weak since interest rates increased in 2022. A reversal of this trend is expected when the government's stimulus package to increase housing construction will stabilise total construction investment over the next few years. However, budget cuts by the federal government will negatively impact civil engineering and subsidised areas of construction (e.g., renovation).