The Polish construction sector is slowly improving, builders expect promising projects.
Experts believe that the segment growth will likely be motivated in the next few years by the funds from the new EU perspective invested in infrastructure and residential construction.
Construction market should grow by 6.8% in 2015, shows a report on this industry by Coface.Deloitte presented a report in mid-October last year which shows that a wider application of public-private partnership (PPP) may be a chance for a stable development of the construction sector in Poland.
Poland still does not imply enough big and successful PPP projects. According to Deloitte's Financial Advisory Department Director Jaroslaw Dabrowski, the lack of appropriate knowledge and experience on the part of the public sector as well as difficulties in combining PPP with financing from the EU funds remain the main challenge.
Globally, many examples of successful PPP projects can be found, both in developed and developing countries, Deloitte analysts say. Builders engaged in such projects are prepared to transfer the experience and good practices to the Polish market.
In 2009-2013, only one in four PPP or construction works concessions projects announced ended up in signing of a contract, Deloitte points out. But financing could not be closed for all of these projects. Moreover, most of them involved relatively small amounts – in the range of several million zloty.
“The EU new budget will provide a significant support for infrastructure, estimated at PLN 103 bln. However, infrastructural investments will be much higher thanks to own means. Total spending on infrastructure by 2020 is estimated at PLN 500 bln or some 30% of Poland's annual GDP,” Coface said in the report.
Roads will account for the biggest share of infrastructural expenditures with a budget estimated at about PLN 95 bln, according to experts. Polish road investment should peak in 2016-2018, for procedural reasons, at PLN 19-23 bln per year.
“As interest rates have stayed low in Poland, while real estate prices are unlikely to rise significantly, prospects for the real estate market remain positive,” the report reads.
The last few years were not easy for the construction industry in view of such factors as e.g. realization of unprofitable infrastructural contracts, a difficult dialogue with public investor or the limited number of tenders for projects from the EU's previous financial perspective, Deloitte points out.
Construction firms managers expect the sector to stabilize and are relatively optimistic as far as future developments are concerned, the study showed. They hope for an acceleration in the sector development in 2015 and for a 3.9% growth in construction output.
Over a half of builders managers (58%) expect their sales to grow y/y in 2015. The biggest companies' representatives sport the most optimism as they predict on average a 4.6% increase.
The start of 2015 brought the best moods in construction in three years, according to analysts.