Contents Executive summary 4 Market overview 5 Construction output resumes growth in 2014 after two consecutive years of annual decline 5 Construction market value returns to growth in 2014, following double-digit y/y decline in 2013 6 Building market to maintain upward tendency in 2015 7 Construction sector shows significant signs of improvement, huge opportunities expected in coming years- study 8 Industrial construction deliveries exceed 1mn sqm in 2014 9 Building construction 9 Completed dwellings number continues to decline in 2014 9 Number of building permits up 13% y/y in 2014 10 Residential real estate market records cheering performance in 2014 11 Infrastructure 12 Road construction market expected to return to double-digit y/y growth this year 12 EC grants €293m financial support for five transportation projects 12 EIB provides financing for modernization of Polish railways, urban infrastructure, eco-friendly investments 12 State bank BGK plans bond issue to finance road fund 13 Corporate news 13 Strabag wins contract for building Volkswagen factory in Wrzesnia 13 Ferrovial consortium to build expressway section for €153.6mn 13 Warbud to implement Polish governmental PPP project 14 Erbud to build €9.9mn office project 14 Skanska reports €1.2bn revenues in 2014 14
Table 1 Insolvencies of construction companies in 2007-2013 8 Table 2 Top 10 construction companies in Poland by revenues in 2013 (PLN mn) 8 Table 3 Number of completed dwellings in 2010-2014, by type 9 Table 4 Number of dwellings with granted permits in 2007-2015 (thou units, ytd) 10 Table 5 Residential construction indicators in 2009-2014 (annual, number, y/y) 11 Table 6 Number of dwellings in which construction started in 2010-2014, by type 11 Table 7 Dwelling stock- Selected indicators in 2009-2013 11 Table 8 Budimex SA- Selected indicators in 2013-2014 (PLN thou) 14
Figure 1 Construction confidence indicators in 2003-2015 (pps) 5 Figure 2 Construction assembly production index in 2009-2014 (monthly, y/y) 6 Figure 3 Value of construction and assembly production by segments in 2013-2014 (PLN bn, % of total) 6 Figure 4 Construction output by type of works in 2009-2014 (PLN mn, quarterly) 6 Figure 5 Construction and assembly production value in 2003-2014 (PLN bn, annual) 7 Figure 6 Construction gross output in 2007-2020f ($bn) 7 Figure 7 Completed dwellings in 2005-2014 (annual, number) 10
This report covers the market developments in FY 2014 and the data available as of March 2015.
The Polish construction sector witnessed accelerated growth in the past 10 years, propped by increased demand for residential constructions, encouraged by advantageous mortgage terms, and further in the years prior to the Euro 2012 football championship road infrastructure segment in particular peaked. Nonetheless, as large infrastructure works neared completion, the sector slid in the negative area.
In 2014, the construction sector recovered on annual basis, driven by improving activity both in building construction and the civil engineering segment. In 2014, the total construction and assembly production increased by 3.6% y/y, after having declined by approximately 12% y/y in 2013 and by 6.3% y/y in 2012.
The prospects remain optimistic, both on the building construction segment, where prices stabilized, demand grows steadily and interest rates are at historically low levels, and on the infrastructure segment. The road construction market in particular is projected to grow by over 10% y/y in 2015, propped by the intensive tender phase in 2013-2014. The road construction companies will likely benefit from the funding under the new EU budget for 2014-2020, yet due to procedural issues the effect of increased investments is expected to be visible only beginning with 2016.
Construction output resumes growth in 2014 after two consecutive years of annual decline
Industrial construction deliveries total over 1mn sqm in 2014
Number of building permits up 13% y/y in 2014
Residential real estate market records cheering performance in 2014
EC grants €293m financial support for five transportation projects
EIB provides financing for modernization of Polish railways, urban infrastructure, eco-friendly investments