Market Trends of Poland Construction Industry
This section covers the major market trends shaping the Poland Construction Market according to our research experts:
Demand for Infrastructure to Boost the Construction Sector
The construction sector in Poland is expected to grow during the forecast period, the main contributors being ongoing road and railway infrastructure projects, residential housing, office, and warehouse construction. According to the data from Statistics Poland, the number of residential buildings finished increased more than 10% year-on-year between January and November 2021, together with a 4.5% increase in construction permits.
There is currently a need for 2-2.5 million dwellings in Poland. Infrastructure development is ongoing, especially railway and road construction. Planned expenditures for road construction in 2022 amount to USD 9.97 billion. The government plans to invest USD 11.1 billion to develop a high-speed rail network and USD 9.7 billion to construct a new hub airport under the Central Communications Port (CCP) project by 2027.
The Mazowieckie and Pomeranian voivodeships are leading the investments, with each province planning projects totaling about USD 12.5 billion. Mazowieckie's largest investments are planned in transport infrastructure, whereas the Pomeranian region has large projects in energy construction and water structures.
Low Interest Rates to Boost the Polish Construction Sector
The construction sector in Poland is expected to grow during the forecast period, given the low-interest rates. The interest rate in Poland averaged 6.57% in the last two decades till 2021, reaching an all-time high of 24% in March 1998 and a record low of 0.10% in May 2020. The mortgage interest rate in Poland decreased overall during the period under observation, reaching a value of 2.9% as of the fourth quarter of 2021. The largest mortgage interest rate during this period was found in the first quarter of 2016 when a mortgage interest rate of 4.5% was recorded. The annual average interest rate of new residential loans decreased overall from a height of over 8% to 2.9% in 2020. Between 2016 and 2021, the annual average interest rate on new residential loans in Poland stayed constant at 4.4%.
