Construction in Poland

2000-2010

During the year of 1999, construction volume increased by 11,5 percent in Poland, and is expected to grow by another 12 percent to a total volume of USD 19,7 billion in 2000, according to the estimates of European Construction Research.

The construction sector's positive development is grounded in the economy's 4,1 percent growth during 1999, and the expectation of further growth in the order of 5-6 percent during 2000.

Some major factors in the rise in construction volume:

• Continuing rises are expected in both Polish and foreign industrial investment, which will yield an industrial construction growth rate of approximately 12 percent (versus 12 percent in 1999)
   
• The breakthrough in residential construction, which will increase by 11 percent to a total of approximately 108,000 units per year.
   
• Ever-increasing road-construction activity; the civil engineering sector will see a 9 percent growth rate during 2000.
   
• Hotel construction will expand by approximately 20 percent, with the emphasis being on the construction of medium-class hotels in Poland's larger cities—with Warsaw, Krakow, and Gdansk in the lead—and the construction of luxury hotels with expanded conference facilities.
   
• A boom in retail construction will continue with a 22 percent growth rate in 2000—due to the continued advance of foreign chains into the market, increasing activity by Polish investors, and the reform of the VAT.
   
• The renovation sector will grow by 13 percent in 2000 . By far the largest consumer here will be building renovation, where housing will take the lion's share with 1/3 of total renovation volume.
   
• The increase in public construction—which has been at a low level—will be less impressive (approximately 8,5 percent). This lower volume is the result of the continued low tax base and high costs resulting from social entitlements.