Short-lived boom predicted for Poland
By Sarah Ann McCay18 October 2012
Poland’s public building construction market is expected to grow by 3% to a record high level of PLN 7.5 billion (€ 1.8 billion) in 2012, according to research company PMR.
The 2012 increase follows several years of growth rates of between 20% and 30%, although the public building construction market did slow in 2011.
However, in its recently published report Public buildings construction in Poland 2012 – Development forecasts for 2012-2015, PMR forecast that the 2012 increase is set to be the last growth period for Poland’s market for quite some time.
According to the report, the public building construction market will see a correction as EU funding comes to an end and local government debt levels rise. PMR predicted that the building sector was not likely to recover until 2015.
Already, the PMR data showed a slowdown in building permits during the first six months of 2012, as well as a drop off in planned investment projects.
However, PMR said the segment would continue to provide contractors with numerous opportunities for high-value contracts, with several dozen major contracts currently in the tender or planning phase.
PMR said a marked improvement in the segment could be expected in 2015, when projects co-financed from the EU budget for 2014-2020 are launched.