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Our team of economists have worked closely with our local experts to analyse an expansive cost dataset to provide insight into how the construction industry is performing. Use the filter below to access the full data breakdown for the individual market of your choice.

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Poland - Warsaw


Economic outlook

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.


Markets and trends

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.



Key Facts
Tendering: Warm
Market: Staying the same
Cost escalation 2017–18: 8.0%
Cost escalation 2018–19: 6.0%
Contractor’s margin: 6.0%
Preliminaries: 6.0%
Location factor (USD): 39.0
PPP coefficient: 2.0



Future outlook

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

Go back to the main ICMS 2018 page