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.

Key points:
• 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