International construction market survey 2016

Around the globe
Poland – Warsaw
On the road to recovery with strong forecasts and stable growth
Economic overview
The GDP growth rate in 2015 was only 3.6 percent,
considerably lower than the average 4.5 percent for the
years 2006 to 2015. Consumer prices are falling and this
may delay spending as expectations of further price
reductions could cause the economy to slow further.
Interest rates have remained low, adding to residential
construction demand; however, this is offset somewhat
by unemployment riding a little high at 11 percent.
Construction market and trends
Commercial construction, housing and rail infrastructure
sector projects are starting to turn around after falling
six percent in the year to January 2016. Activity in the
retail construction sector has been decreasing and this
trend looks set to continue.
A major challenge in Poland is dealing with construction
permits, which can take on average 19 procedures, 212
days, and cost 0.3 percent of construction value. However,
the new government is determined to cut this red tape.
Future outlook
Overall, the investment forecast for 2016 is improving, given
mild monetary policies, low interest rates and significant
allocation of EU funds for road improvements. A change
of government could potentially hamper confidence.
International building costs per m 2 of internal area, in 2016
PLN
USD
(exchange
rate: 3.97)
Airports (building only)
Domestic terminal, full service 8,300 2,090
Low-cost carrier terminal, basic service 4,300 1,080
Car parks
Multi-storey above ground 1,700 430
Multi-storey below ground 2,350 590
Commercial
Offices – Business Park 3,400 860
CBD Offices – up to 20 floors medium (A-Grade) 4,200 1,060
CBD Offices – high-rise prestige 4,600 1,160
Education
Primary and secondary 2,400 600
University 3,600 910
Hospitals
Day centre (including basic surgeries) 2,700 680
Regional hospital 3,400 860
General hospital (e.g. city teaching hospital) 3,400 860
Hotels
3 Star travellers 4,200 1,060
5 Star luxury 6,600 1,660
Resort style 4,600 1,160
Industrial
Warehouse/factory units – basic 1,700 430
Large warehouse distribution centre 1,800 450
High-tech factory/laboratory 2,500 630
Residential
Individual detached or terrace style house – medium standard 2,100 530
Individual detached house – prestige 2,900 730
Townhouses – medium standard 2,400 600
Apartments low-rise – medium standard 2,550 640
Apartments high-rise 2,850 720
Aged care/affordable units 2,700 680
50
Turner & Townsend