Great reconstruction after the flood. Will building materials become more expensive?

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Will the greater demand for construction materials in flood-affected towns increase prices? There is a risk that prices will continue to rise, but not only the flood will be responsible for this.

It can be assumed that since several dozen communes suffered from the September flood, the demand for construction materials will be so great that it will lead to an increase in prices in wholesalers throughout the country. This would be bad news for people preparing to build or renovate or buy an apartment from a developer – more expensive materials simply mean more expensive apartments for sale.

Will the prices of construction materials increase following the flood?

This does not have to happen, but if materials become more expensive, it will not be solely the “fault” of reconstruction after the flood. An analyst of the website sklepprimotny.pl notes that the prices of building materials are influenced by many factors, including the situation on the housing market, inflation and economic policy. In the first half of this year, the number of building permits issued increased by 28% and the number of construction starts by 43%. compared to the same period of the previous year. The number of apartments put into use decreased by 14.6%.

Therefore, we are not observing a major recovery in the housing market – this is expected only in 2025. The renovation market is also not hot: in August, i.e. at the peak of the renovation season, private individuals carried out 19% more renovations. less work than in the same period in 2023.

– Despite the huge local severity of flooding for residents, especially in the southern parts of the Lower Silesian and Opole voivodeships, the total value of damage is insignificant in relation to the value of the construction market – around 1.5%. its annual value. Consequently, meeting the demand for construction materials or labor in the flooded area should not be a significant challenge for the Polish construction industry, said Jan Styliński from the Polish Association of Construction Employers.

More expensive energy does not go hand in hand with cheap construction materials

Despite this, the Skaner SME study shows that 63 percent construction companies expect prices of products and services to increase this year. If not reconstruction after the flood, what would raise prices? Rising prices of energy, a lot of which is used in the production of plasters, adhesives and mortars.

Specialists cited by the website warn that although no drastic price increases are expected, state authorities, such as the Office of Competition and Consumer Protection, should monitor the market to prevent possible price collusion.

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