Poland's residential sector booming

Residential construction in Poland is set to grow until 2010, both in terms of completions and the value of construction output, according to the latest report from market research company PMR.

The report, Residential Construction in Poland 2008 - Development Forecasts for 2008-2011, said that driven by high sales on the primary market in 2006 and 2007, the number of available new housing units will increase and the value of construction output will expand significantly. However, the report also predicts there will be a substantial decline in housing completions from 2011.

Development forecasts for 2008 to 2011, said the report, estimate that residential construction will continue to grow by approximately +50% through the remainder of 2008 and is expected to hit PLN 17 billion (€ 5 billion) by the end of the year. The key factor contributing to this huge growth is the development of apartment blocks.

The report also found that in 2008, the number of housing completions will be close to 170000. This will expand in subsequent years to 200000 units by 2010.

“The good prospects for residential construction are substantiated by many factors, including a large number of housing starts, a growing percentage of investment works and high and stable growth in earth works,” said Bartlomiej Sosna, Polish construction market analyst at PMR.