Construction industry 2025: Hope for recovery or continued crisis year?

Construction industry 2025: Hope for recovery or continued crisis year?

Austria's construction industry is facing a challenging year in 2025. After five years full of difficulties, the current construction barometer from the INFO-TECHNO construction database shows mixed optimism. Although the order situation is positive in many companies, the general mood remains tense, as noted by the Austrian Chamber of Commerce, which recorded a decline of 1% in nominal development for 2024 and a real decline of 4.5%. Over 1,160 companies and planners took part in the survey, providing insight into the worrying situation.

Particularly problematic are the high raw material and energy costs, the strict regulations that still exist and the unclear funding policy that are putting a strain on the industry. While 40% of those surveyed expect further declines over the next year, there is a small glimmer of hope: the proportion of optimists who expect a positive development has increased from 21% in 2024 to 28%. This muted confidence could indicate an improvement in the general conditions, even if 32% still expect stagnating or negative development, as the construction barometer makes clear and shows the uncertainty within the industry.

Germany in construction site mode

If you look at the situation in Germany, the nominal construction volume of 558 billion euros from 2023 also gives cause for concern. Residential construction continues to dominate with 315 billion euros, with energy-efficient renovations making up a significant part. However, despite a nominal increase of 18% since 2021, real construction volume has fallen by four percent, largely due to rising construction prices and falling demand. The detailed calculations from DIW Berlin shed light on this critical development and are extremely valuable for anyone who wants to analyze the situation in the construction industry. These trends underline the need for real reforms to achieve stabilization in the industry, as also mentioned in a report by the Federal Institute for Building, Urban and Spatial Research.

In summary, the construction industry remains tense in both Austria and Germany, while at the same time holding on to a glimmer of hope that could be brought about by the recovery in orders and investments. A sustainable improvement in the framework conditions is essential to advance the digital and physical infrastructure of the two countries.