While Austria’s overall residential construction market continues to face significant pressure, the prefabricated housing sector is proving remarkably resilient. Despite an ongoing downturn in the construction industry expected to last until the end of 2026, the prefabricated home segment already achieved volume growth of +2.7 percent in 2025. A further increase of +1.2 percent is forecast for 2026. In value terms, the market is projected to grow by +4.8 percent, according to a study by Interconnection Consulting.

Catch-Up Effects Drive Market Recovery

The positive development of the prefabricated housing market last year is primarily attributable to catch-up effects: numerous construction projects that had previously been postponed were completed in 2025. As a result, the prefabricated housing market is performing significantly better than the overall residential construction sector and continues to gain importance.

In 2025, prefabricated homes already accounted for 35.4 percent of completed single- and two-family houses (excluding log homes).
“Over the long term, a further structural shift of the market toward prefabricated homes can be expected,” explains Dr. Frederik Lehner, Managing Director of InterConnection. For the period from 2025 to 2029, Interconnection analysts forecast an average annual volume growth rate of +3.0 percent.

Price Dynamics Have Clearly Eased

Following an exceptional price increase of +17.0 percent in 2023, market conditions have stabilized considerably. Prices rose by only +1.8 percent in 2024 and by +2.6 percent in 2025. The main reason is a growing trend toward more compact and cost-efficient house types.

With a total market volume of €907 million, market value in 2025 was 5.4 percent higher than the previous year.

Cost Pressure Is Shifting Housing Concepts

Despite challenging economic conditions, prefabricated homes are increasingly establishing themselves as the preferred construction method in the single- and two-family housing segment. Single-family homes still dominate with a share of 86.1 percent but are gradually losing importance.

Two-family houses (7.6 percent) and terraced houses (6.3 percent) are gaining noticeable market share — an indication of rising cost pressure and changing housing concepts.

Timber Frame Construction Remains Dominant

Timber frame construction continues to lead the market, accounting for around three-quarters of all prefabricated homes. Its market share is continuing to grow relative to solid construction methods and other building systems.

Clear trends are also visible in construction stages: turnkey homes already accounted for approximately 44 percent of the market in 2025 and are expected to exceed 45 percent by 2029. Despite an average price of around €321,240, an increasing number of buyers are opting for this convenient solution.

Regional Differences and Increasing Market Concentration

The market shows strong regional concentration: in 2025, 58.4 percent of all prefabricated homes were built in Lower Austria and Upper Austria. The strongest growth in the coming years is expected in Salzburg, Tyrol, and Burgenland, while Vienna is projected to see declining figures.

At the same time, market concentration is increasing significantly. The top 10 providers have substantially expanded their value-based market shares. Larger, well-capitalized companies benefit from economies of scale and greater stability, while smaller providers are increasingly coming under pressure.

Every Second House in Vienna Built by Glorit

Glorit continues to expand its leading market position in Vienna’s residential construction sector. With a market share of 51.5 percent, the company clearly confirms its market leadership in the Austrian capital. Nationwide, Glorit ranks second overall despite its strong regional focus.

“De facto, every second newly built house in Vienna comes from Glorit. We support this leading position through consistent premium quality, excellent financial stability, and a genuine all-inclusive package for our customers,” emphasizes Lukas Sattlegger, Managing Director of Glorit.

For 2026, the premium developer has increased production of its housing projects by around 30 percent. Growth is particularly focused on Vienna’s rapidly developing districts 1210, 1220, and 1230.

Glorit also reinforces its premium positioning through its construction stages: 100 percent of homes sold in 2025 were delivered turnkey. The company’s comprehensive all-inclusive package has therefore proven to be a decisive factor in property purchases — a trend that is becoming increasingly evident across the market.

“Especially in economically challenging times, customers place particular importance on security, predictability, and full cost control. Turnkey homes delivered from a single source are therefore becoming increasingly important,” says Sattlegger.

Link to the report

25/02/2026

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.