06 Feb 2020
Business confidence among Polish construction companies tumbled early this year, with the heaviest burden, as perceived by the enterprises, coming from labour costs and tax levies. Decline in confidence is chiefly due to such factors as an over 15% increase in the minimum wage and a 10% hike in social insurance contributions faced by sole traders operating in the construction industry. On top of that, large construction businesses are required to conduct Employee Capital Schemes (PPK) or the alternative solution of Employee Pensions Schemes (PPE).
18 Dec 2019
The top 40 construction companies operating in Poland posted a record aggregate revenue in 2018, breaking the previous revenue high set in 2011. Besides an improved volume of work, the revenue hike was also largely driven by rising prices of building materials and labour.
19 Nov 2019
The aggregate net profit of the 30 largest commercial property developers in Poland hit an all-time high of PLN 985m (€230m) in 2018, which translated into a net profit margin of 25%. The latest data from the investment transaction market and property developers’ interim financial statements indicate that 2019 can be as good a year as 2018 was for the industry in terms of profitability.
28 Oct 2019
The total value of 230 office, retail, warehouse and hotel projects, both ongoing and planned, which are conducted by top 30 property developers is estimated at nearly €10bn, according to our latest report "Property developers in Poland 2019-2023".
23 Oct 2019
A record number of 200,000 flats and houses were completed in a 12-month period – the highest annual figure recorded since 1989 when Poland’s transition to democracy began – on the back of several years’ upturn in residential construction.
13 Oct 2019
Total revenue reported by more than 20 construction groups listed on the Warsaw Stock Exchange grew by 7.4%, in nominal terms, in Q3 2018-Q2 2019 to almost PLN 25bn (€5.8bn). However, growing revenue figures still do not translate into improved profitability of the construction industry as a whole, which has been in the negative territory for nearly two years. The upturn in the construction sector of the past few years has benefited mostly property developers and, though to a much lesser extent, producers and suppliers of building materials and construction equipment.
24 Sep 2019
The value of output generated by the Polish construction industry has reached an all-time high level on the back of several years’ investment upturn, and it is expected to come close to PLN 250bn (€59bn) in 2020. In nominal terms, the market’s value is impressive, but it is less so when one looks at the volumes of construction work being performed and building materials used. A noteworthy fact is that the growth in the market’s value is boosted by rising prices of building materials and higher labour costs.
Strabag vs. PORR – Austrian companies put in bid for runner-up spot in the Polish construction sector
23 Sep 2019
Boosted mainly by large-scale road, railway and tunnel construction projects, the backlog of orders secured by the PORR Group in Poland has grown tremendously since the acquisition of Bilfinger Infrastructure in 2015, and its value topped PLN 6.6bn (€1.55bn) as at the end of Q2 2019. Consequently, the gap between PORR and Strabag, in terms of the current value of orders on hand, has been narrowed considerably to just a single medium-sized contract.
14 aug 2019
The latest report from Spectis, "Construction market in Poland 2019-2025 – analysis of the 20 largest cities", shows significant differences among the individual cities in terms of the present stage of the business cycle and the potential through to 2025. These observations refer to both building construction and municipal infrastructure construction segments.
05 Jul 2019
According to Spectis calculations, in March 2019, cement sales on the domestic market for the first time in history exceeded the level of 20 million tonnes per year.
03 Jul 2019
Despite the fact that the Polish construction market is projected to grow at a slower pace in the coming years, investment potential remains considerable for most of the regions. The total value of the 960 largest investment projects underway or planned in Poland is estimated at a staggering PLN 420bn (€100bn), i.e. nearly twice as much as the annual value of the construction market as a whole, according to the findings of our latest report "Construction market in Poland 2019-2025 – an analysis of 16 regions".
Warsaw Stock Exchange-listed construction companies saw slight improvement in profit margins in 2018
08 May 2019
Aggregate revenue reported by more than 20 construction groups whose stock is listed on the Warsaw Stock Exchange grew by a nominal 9.8% in 2018, which is a meagre rise in real terms, given soaring prices of building materials and labour. Net financial performance of the listed construction companies also improved marginally, but the figure still pales in comparison to earnings achieved by property developers and suppliers of building materials and construction equipment.
03 Apr 2019
Construction companies successfully confronted looming insolvency issues in 2018. However, this does not mean that the risks have been entirely mitigated. Loss-making contracts whose prices were set at the time of increased competition will still be pursued and billed in 2019 and 2020. Nevertheless, there will be fewer of them active, and the backlogs will start to comprise mostly contracts valued conservatively.
27 mar 2019
Low interest rates combined with an investment upturn and labour shortage result in a significant upward pressure on building material prices and labour costs. Given the monetary authorities’ lenient stance and the continued growth in the construction industry, price pressures in the construction market are expected to persist throughout 2019.
04 mar 2019
The Polish construction industry enjoyed a really strong year in 2018 as most of the key performance indicators were climbing the charts of growth throughout the year, but the start to 2019 saw a substantial downturn across practically all market segments. This, however, was due to a high comparison base registered last year.
21 Jan 2019
Construction and assembly output generated by Polish construction companies in foreign markets has hit an all-time high of €1.55bn, but this is still below the potential of domestic contractors. Importantly, a considerable change to the structure of companies engaged in foreign orders took place in recent years – the centre of gravity has shifted from the biggest construction groups to smaller companies with a specialised focus.
19 Dec 2018
Profitability of 22 construction groups listed on the Warsaw Stock Exchange continued in the negative territory throughout Q3 2018. Moreover, the third quarter of the year was the second consecutive quarter that profitability reported by property developers was on the decline, though it should be noted that their earnings were still fairly decent and at a sound level when compared to contractors. On the other hand, financial results delivered by manufacturers and suppliers of building materials and construction equipment were solid.
14 May 2018
Despite unsuccessful bids to secure contracts for the construction of the Ostroleka Power Plant and the tunnel section of the S3 expressway, members of the PowerChina Group still stand a good chance of winning three orders totalling more than PLN 3bn, incl. VAT, the largest of which is the construction of the Krakow Northern Bypass.
While it is way too soon to say if expanding into the Polish market has been a successful effort, it should already be noted that if the PowerChina Group secures the three contracts, it will actually reach the top 10 of Poland’s contraction companies in terms of the order book value.
Interestingly, the company has set itself the objective of achieving the position of a leading participant of the infrastructure construction market, not only in Poland but also in Europe as a whole.
The value of the construction market in Poland expected to exceed PLN 200bn in 2018 after a record-setting 2017
09 Feb 2018
The ongoing investment upturn, which began several months ago, coupled with excellent performance towards the end of 2017 lifted Polish construction output to new heights. Output generated by Polish construction industry is expected to further climb in 2018. However, its value as a percentage of GDP is still fairly moderate.