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.

The global flooring market is gradually regaining momentum as construction activity stabilizes, and investment returns to housing and infrastructure. According to IC Market Forecast Global Flooring 2025 by Interconnection Consulting, market value will rise by 6.6% to EUR 144.22 billion, while volumes will increase by 4.1%, reaching 20.30 billion m², driven by large scale infrastructure investment in the Middle East and sustained demand for cost-efficient flooring solutions. Residential construction remains the main driver of global flooring demand, with volumes expected to grow in quantity by 4.5% in 2026, while non-residential applications follow closely at 3.9% increase. Flooring installed in new buildings is forecast to increase in quantity by 6.2% in 2026, significantly outpacing renovation activity, which is expected to grow by only 2.9%. While overall demand is stabilizing, growth remains uneven across regions, reflecting differences in economic conditions, investment priorities, and construction cycles. The Middle East stands out as the fastest-growing region, with market value projected to increase by 12.9%, fueled by large-scale infrastructure programs and real estate development. Europe is expected to expand by 6.4%, mainly through selective renovation and public sector investment. Asia will record a moderate value growth of 4.2%, supported by industrial construction and housing projects, while the USA shows a restrained outlook at 3.5%. Despite improving demand, the industry continues to operate under pressure, as overall market growth is largely driven by price sensitive segments such as laminate (+7.7% value growth) and LVT/SPC (+8.0% value growth). From a product perspective, ceramic tiles remain the largest category, accounting in quantity for 44.9% of the global market in 2026, followed by elastic floor coverings (16.2%) and laminate (12.5%). Laminate is among the fastest-growing segments, expected to increase in quantity by 6.0% by 2026, supported by its affordability and ease of installation, while textile flooring remains nearly flat, growing by just 0.2% in 2026. “Solutions that enable faster installation, durability, and long-term efficiency are becoming increasingly important as the market adapts to cost and labor constraints in 2026 and beyond.” explains Manuela Hoxha, author of the study. The top 10 flooring companies - Armstrong Group, Beaulieu International, Egger, Gerflor, Interface, Lamosa Group, Mohawk, Shaw Floors, Swiss Krono, and Tarkett - account for just 24% of the global market. The flooring industry remains fragmented, with strong regional manufacturers continuing to play a major role across Asia, the Middle East, Latin America, and parts of Europe. Looking ahead, the outlook for the global flooring market remains positive, with an expected compound annual growth rate (CAGR) of +6.5% between 2024 and 2028.

The coffee industry in the HoReCa channel in Spain continues its sustained growth trend, registering a +2.0% increase in sales volume in 2025, reaching 24,286 tons, driven mainly by the continued recovery and expansion of tourism, as well as the strengthening of out-of-home consumption, according to IC Market Tracking – Coffee in the HoReCa sector in Spain by Interconnection Consulting. This evolution allows the segment to recover pre-pandemic levels and consolidate the channel's recovery in the country. Growth in Spain is above the European average, which reached +1.4% in 2025, demonstrating the strong momentum of the Spanish market. “After the profound impact of COVID-19, the years following 2020 were characterized by a rebound associated with a gradual return to normality; 2025 confirms a period of sustained stabilization that maintains an upward trend,” says Aritz Blanco, author of the study. In terms of products, coffee beans clearly dominate the market, accounting for 93.4% of sales in the HoReCa channel, driven by the modernization of professional equipment and growing consumer demand for quality. In terms of channel structure, coffee shops continue to be the main point of consumption with 44.5% of the market, followed by restaurants and hotels, while bakeries and pastry shops, despite their smaller presence, show growing potential for expansion and are gradually gaining relevance in the competitive landscape. The market is composed of both national and international corporations. Together, the 10 most relevant companies account for a significant share of the total HoReCa channel volume, including Cafento, Cafés Baqué, Cafés Candelas, Cafés Novell​, Cafés Oquendo​, illycaffè, Jacobs Douwe Egberts, Lavazza, Pascual Profesional and Templo Cafés​. The outlook for the future is that the Spanish market will maintain its upward trend, with a compound annual growth rate (CAGR) of 1.8% in the period 2025-2029.  

According to the study published by Interconnection Consulting, the European sanitary pipes and fittings market has gone through an exceptionally demanding phase between 2023 and 2025. While the prolonged slowdown of the construction sector remains a central driver, market developments cannot be attributed to construction activity alone. Across Europe, country-specific geopolitical tensions, macroeconomic uncertainty and divergent policy frameworks have further weighed on investment decisions and market confidence. In addition, government-supported renovation schemes and the postponement of construction projects have disrupted the traditionally stable relationship between building activity and demand for sanitary pipes and fittings, resulting in a markedly less predictable market environment. In the Top 20 European countries, sales reached approximately 2.01 billion meters of sanitary pipes and 1.50 billion units of sanitary fittings in 2024. The overall market situation in 2025 remains challenging, although the pace of decline is expected to moderate compared to 2024. Current estimates point to a volume contraction of around -5.1% for sanitary pipes and -5.7% for sanitary fittings. Beyond the short-term pressure, however, the medium-term outlook shows signs of stabilization.  

Diverging Paths Across Europe´s Largest Markets 

The European sanitary pipes and fittings market is led by Germany followed by the UK, Poland, France, and Russia. While each of these countries is influenced by distinct internal factors that shape local demand and supply, they share a common role as trendsetters for the overall European market due to their significant market weight. Collectively, these five countries account for 61% of total market share, highlighting their outsized influence on market dynamics. Within this apparent commonality, however, substantial divergence exists: uneven infrastructure investments, fluctuating energy costs, and country-specific regulatory changes drive contrasting market developments. This divergence reinforces that a “one-size-fits-all” approach is no longer appropriate, and strategies must be carefully adapted to the specific dynamics, risk profiles, and growth potential of each market. 

Structural Differences: Nordics Markets vs. the Rest of Europe 

The Nordic countries display a markedly different performance compared to other European markets. In 2024, Scandinavia region experienced the sharpest declines among the Top 20 European countries, with Finland registering the most severe contraction, approximately -42.5% decline, making it the worst-performing market of the year. Norway, while facing a more limited decline, nonetheless recorded its highest drop in recent years. These negative outcomes are primarily driven by a significant slowdown in investments in the construction sector and in issuing permits, particularly residential construction, influenced by the post-pandemic normalization of building activity and national housing policies. At the same time, high interest rates also played a significant role. While the magnitude of the decline varies, the common factor underscores the sensitivity of sanitary pipes and fittings demand to structural shifts in construction activity and policy frameworks, highlighting the heterogeneous nature of market developments across Europe. 

Applications and Materials: From Standard Solutions to System Thinking 

The European sanitary pipes and fittings market in 2025 shows moderate fluctuations across its three main application segments. Hot and cold water installations maintain the leading position with a 39.7% market share, though closely contested by surface heating and cooling systems, which are gaining ground and are expected to occupy the first position in terms of quantity market share from 2026 onwards. Radiator connection pipes remain the smallest segment. In the Nordic countries, surface heating and cooling systems continue to dominate due to historical adoption patterns, energy efficiency priorities, and building practices. 

Material-wise, plastic remains the predominant choice for pipes across Europe, appreciated for its cost-effectiveness, light weight, ease of installation, and chemical resistance. For fittings, however, multilayer solutions take the lead, accounting for an estimated 32.5% market share in 2025 according to Interconnection data. These multilayer fittings combine the benefits of polymers flexibility, non-toxicity with those of metals, pressure and temperature resistance, dimensional stability, achieving optimal performance and enhanced durability, particularly in complex systems. Material selection is inherently linked to the type of application and is expected, according to industry experts, “to increasingly favor climate-friendly technologies in the coming years”. 

Outlook: A Gradual Rebalancing Rather then a Rapid Rebound 

The European sanitary pipes and fittings market is expected to stabilize in the coming years, with 2025 likely marking the end of the three-year negative trend observed across most countries. Looking ahead, the future looks bright and the market is expected to recover gradually. Interconnection projects a CAGR of 5% for sanitary pipes and fittings from 2025 through 2028, reflecting a steady rebound in demand across Europe. From 2027 onwards, a period of stronger short-term recovery is anticipated, driven by renewed investments in infrastructure and sustained expansion in both the construction and industrial sectors. Overall, the outlook points to a favorable market environment, characterized by stable and growing demand, an increasing preference for high-performance and sustainable materials, and continued adoption of system-oriented solutions.