Booming construction reaching close to capacity
Economic growth is strong in Poland and will remain solid, even though annual growth in 2018 is expected to slow to 3.2 percent partly due to labour shortages. Most fundamentals are positive. Inflation remains under control and unemployment is low.
Construction is booming across most sectors and the number of construction projects has increased to near capacity in terms of available sub-contractors. With demand increasing, there has been a notable growth in residential projects and commercial office developments in Warsaw and regional hubs such as Łódź, Katowice, Kraków, Poznań and Wrocław.
Activity is also coming from investment in industrial and manufacturing from international players, such as Rolls-Royce and Daimler Benz. After a fall in funding by the EU in 2016, infrastructure projects are coming back on stream. There is also a significant increase in railway projects, prepared over the past three years, now starting on site.
|Market:||Staying the same|
|Cost escalation 2017–18:||8.0%|
|Cost escalation 2018–19:||6.0%|
|Location factor (USD):||39.0|
Continued economic growth, forecast to be between 3 to 4 percent by 2020, should sustain demand in the residential sector. Meanwhile, plans for the Central Airport with a target capacity of 100 million passengers a year located between Łódź and Warsaw may represent a step change in the Polish construction market.
This content is part of the International construction market survey 2018