PAB-Polish Construction Research & Forecasting

Managing Director: Mr.Mariusz Sochacki

Mail: sochacki@polishconstruction.waw.pl
Web: www.polishconstruction.waw.pl/

Polish Construction Research & Forecasting estimates - on the basis of own research and analysis of the tentative CSO's data - that the total value of the Polish construction market in the comparable prices has increased by about 14,5% in the first half of 2006, as compared to the level of the first half of 2005.

Construction market boom in the first half of 2006 has been a result of the big increase in sale of building products and materials and increase in volume of construction work.

Those advantageous phenomena on the construction market have been observed in the first half of 2006, when an increase of production was as much as by 9.5% (according to the tentative estimations of CSO), with simultaneous increase of number of workers employed in building industry by 2.3% and salary in construction industry - by 8.1%.

The sale of building products and materials after six months of 2006 was higher by almost 18% as compared to six months of 2005 (but lower by 0.5% as compared to the record sale noted in three months of 2004).

Changes in construction output, production of building materials and number of employees in construction in the first half of 2000-2006 (y-o-y)

According to PAB Institute's estimations, the value of the Polish construction market in the first half of 2006, in current prices, amounted to about PLN 42 billion., i.e. Euro 11 bilion.

The research performed by PAB-PCR&F under the framework of Construction Monitoring shows that, besides above mentioned, the following phenomena and trends were observed in the Polish construction in the first half of 2006:

1. The biggest increase of outlays on infrastructure construction, the share of the engineering construction in the object structure of the construction production after 6 month of 2006 has increased.
2. The highest increase of the construction production was noted in Lodz Voivodeship - an increase of 40% and lower has been noted in Swietokrzyskie Voivodeship. The production has been concentrated in three voivodeships: Mazovia Voivodeship 28%, Silesia Voivodeship 12% and Posnania Voivodeship - 11%.
3. The average monthly gross salary in the construction industry in June 2006 was equal to PLN 2 542.5 and was by 9.3% higher than in the corresponding month of the previous year.
4. According to the tentative data of the Central Statistical Office, 49 500 dwellings have been completed in the first half of 2006, i.e. by 0.1% more than in the first half of 2005; the increase has been noted in 8 voivodeships, decrease - in 8, too.
5. The number of issued dwellings construction permits was in the first half of 2006 by 30.3% higher than in the corresponding period of previous year; the number of started dwellings was by 21.2% higher.
6. The economic-financial indicators of the construction companies have been improved in the first half of 2006.
7. Prices of construction-assembly production has increased by 2.3% in six months of 2006 (according to the Central Statistical Office's estimations).
8. The growth of the production of the construction products were noted in the first half of 2006 for 22 from among 26 registered building materials.
9. The largest number of the construction tenders has been announced for the general construction works, road and bridges construction and sanitary and wiring systems.