Construction on the edge? The latest data on prices and market condition

Despite the announcement of revival, the prices of building materials still remain in the inheritance trend. In May, a small, fractional decrease was recorded again in relation to year on year – this is the twelfth month in a row.

According to experts of the RynekPierwotny.pl portal, the stabilization of price dynamics that has been undergoing a small minus for a year has no signs of a clear breakthrough. In their opinion, only the launch of the announced infrastructure investments, implemented with the support of EU funds, can significantly affect the increase in demand, and thus – also prices.

For now, however, the market remains cautious, and the prices of most categories of materials remain at a stable or slightly falling level. Analysts emphasize that this is good news for individual investors and companies implementing construction projects in the first half of the year.

Prices of building materials with a symbolic decline

Experts point out that the average dynamics of the price of building materials, published by the PSB group, in May recorded a symbolic decrease again – this time by 0.7 percent. year on year. In the retail segment, the discount also amounted to 0.7 percent, while in the wholesale channel – 0.5 percent As a result, monthly price changes remain virtually imperceptible.

– price increase in May 2025. Compared to May 2024, only 4 groups were recorded, prices in 3 categories remain unchanged, while the declines occurred in 13 groups. Such proportions indicate a strongly fixed, but definitely moderate inheritance trend – believes Jarosław Jędrzyński, expert of the RynekPierwotny.pl portal.

Among the goods that got cheaper, there were: thermal insulation (-5.5 percent), interior finishes (-4.1 percent) as well as lighting and electrics (-3.6 percent). However, the largest increases were recorded in the categories: OSB and wood (+9.2 percent) as well as cement and lime (+3.6 percent).

Disturbing stabilization of the prices of building materials

Experts pay attention to the recently published opinion of the Polish Association of Employers, which alerts about the most serious crisis of the national construction industry since 2016. Its main symptoms are to be the falling use of production capacity in large executive companies, stagnation of public and private investments, and the lack of a consistent state strategy, which led to the paralysis of the entire sector. In this situation, without decisive actions from the government, native construction – being one of the key pillars of the economy, responsible for about 10 percent. GDP and giving work for over a million people – is at risk of long -term business collapse.

Expert: “May the revival thanks to KPO funds would not be waiting for Godot”

Meanwhile, as the experts of the RynekPierwotny.pl portal emphasize, the latest CSO data on housing construction for May are confirmation of the weakening condition of the sector. It is difficult not to see the deteriorating moods among companies building apartments for sale or rent. The visible recourse in the number of started buildings, permits obtained and flats put into use suggests the growing operational caution of the development industry, which thus reacts to economic uncertainty, growing construction costs and expectations regarding interest rates.

– In the current situation, everything seems to indicate that as long as the announced investment boom as part of the national economy in the segments of road, rail, energy, military or residential buildings financed from EU funds will not become a fact, so long the price on the domestic market of building materials will remain stable with a slight downward trend – says Jarosław Jędrzyński.

As he notes, unfortunately, as PZPB assesses, the reflection in the infrastructure segment is late by several months, which confirms that the state has been failing systemically and at many levels for many years.

– In this situation, you should only hope that the revival of the economic situation on the construction market due to KPO funds will eventually be materialized, and it will not turn out to be the proverbial “waiting for Godot” – he concludes.