Austria construction market: Output forecast to grow at a 3.5% CAGR between 2013-17
Construction in Austria - Key Trends and Opportunities to 2017 - a new market research report on companiesandmarkets.com
PR-Inside.com: 2014-04-02 06:25:01
Growth in the Austrian construction industry was attributed to the expansion of the European Union (EU) in 2004 and 2007, through the integration of 12 Central and Eastern European (CEE) countries. Austria became an entry point for companies targeting the CEE markets, due to the country´s developed infrastructure. As a result of this development, Austria´s construction industry reported large investment in infrastructure modernization and expansion to meet the increased demand.
However, the economic crisis resulted in a slowdown in the industry, as the country´s economy is highly dependent on exports. Consequently, the Austrian construction industry recorded a CAGR of 1.53% during the review period. The outlook for the industry is favorable, as a result of the government´s focus on country´s infrastructure and residential construction. The construction industry´s output is expected to record a CAGR of 3.48% over the forecast period.
Following strong growth rates of 2.1% and 2.7% in 2010 and 2011 respectively, the Austrian economy moderated to 0.8% in 2012. This was mainly due to the prolonged recessionary tendency prevailing in the Eurozone which affected Austrian exports and new investment activity.
Given the sluggish domestic demand in the Eurozone and fragile global economic recovery, we expect the Austrian economy to grow at a modest pace of 0.5% in 2013.
The number of tourists to Austria increased in 2012, making tourism one of the main areas of the country´s economy to expand. According to the World Travel and Tourism Council (WTTC), the sector is expected to attract EUR4 billion in capital investments by 2022. This will help to support growth in the leisure and hospitality buildings category over the forecast period.
Austria is an export-oriented economy and the industrial sector accounts for over 30% of the country´s GDP. With many global economies in a period of recovery, demand for the export of Austria´s industrial products will improve over the forecast period, signaling an expansion of the country´s industrial construction market.
Austria is one of the top investors in rail infrastructure in the EU. Owing to the country´s central location between Western and Eastern Europe, and its use as a transit point, the Austrian government invested heavily in rail infrastructure and has a strong pipeline of various rail modernization and development projects nationwide.
Austria has an excellent healthcare system and the country saw a sharp increase in the number of hospitals, clinics, cosmetic and elective surgeries, and cosmetic dentistry practices. A key driver for healthcare expenditure in Austria is the country´s aging population. A larger elderly population means greater expenditure on pharmaceuticals and other forms of healthcare.
Over the forecast period, the residential construction market will be supported by Austria´s rising population, increasing levels of disposable income, low unemployment rates, and rapid urbanization. Low interest rates will continue to support growth in residential property demand.
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