Total overdue debt in Poland’s construction sector exceeded PLN 5.9 billion at the end of 2025, marking a 5.6% year-on-year increase. Despite the growing overall amount of unpaid liabilities, recent data indicate the first signs of improvement in the key segment of construction works related to building development. Information from BIG InfoMonitor and BIK shows a decrease in contractors’ arrears by PLN 33 million, alongside a clear rise in interest in mortgage loans.
Although the construction industry continues to struggle with a high level of debt, segments directly linked to residential development are gradually regaining financial stability and preparing for a potential rebound in demand.
Key Sector Figures
At the end of 2025:
- Total debt in the construction sector exceeded PLN 5.9 billion (+5.6% year on year),
- Companies engaged in building construction (PKD 41) had a combined PLN 3.2 billion in overdue liabilities,
- The average mortgage loan application reached PLN 492,000,
- In the real estate rental segment (PKD 68.20.Z), overdue liabilities increased by PLN 421.4 million, reaching nearly PLN 2 billion.
These figures highlight significant disparities in the financial condition of different areas within the real estate market.
Contractors Emerging from the Most Difficult Period
After several years of cost pressure driven by rising prices of construction materials, energy, and financing, the contractor segment has begun to stabilise its finances. In the building construction segment (PKD 41), the total value of overdue liabilities declined by PLN 33 million year on year, falling to PLN 3.16 billion.
Although relatively modest in macroeconomic terms, this change represents the first tangible signal of a reversal in the negative trend. Importantly, the improvement concerns not only the total debt value but also its structure. The number of companies with overdue liabilities decreased by more than 1,200 entities, suggesting stronger financial discipline and more cautious risk management.
The reduction in overdue debt results partly from a more selective approach to contracts, stricter credit policies, and improved cost control in a higher interest rate environment. The average debt per construction company has gradually declined, which is particularly important for banks and insurers financing new housing projects.
According to Dr. Waldemar Rogowski, Chief Analyst at BIG InfoMonitor, a clear decrease in the number of unreliable debtors combined with a reduction in total arrears signals growing resilience of the sector to economic fluctuations. While it is too early to speak of a full financial “reset,” the current trend allows companies to plan new contracts more rationally and respond more effectively to market changes.
Mortgage Lending Fuels Market Sentiment
The second pillar supporting improved sentiment is growing demand for mortgage loans. In the second half of 2025 and at the beginning of 2026, the number of inquiries regarding housing purchase financing increased significantly. Part of this growth reflects a low base effect from the previous period of high interest rates, yet the shift in trend may signal a return of buyers to the market.
Improved creditworthiness, rising wages, and stabilised expectations regarding financing costs are creating a foundation for future purchasing decisions. The average mortgage loan application reached a record PLN 492,000, reflecting both rising property prices in major cities and higher construction costs.
For developers and contractors, this translates into greater predictability of financial flows. Certainty of financing on the buyer’s side strengthens stability across the entire supply chain – from general contractors to subcontractors and material suppliers.
Experts caution, however, that renewed housing sales growth must be accompanied by prudent cost and risk management. Excessive optimism during the recovery phase could once again increase the risk of overdue debt should economic conditions deteriorate.
Rental Segment Under Pressure
Despite improvements among contractors, not all segments of the real estate market are experiencing positive developments. The rental and property management segment (PKD 68.20.Z) faces particularly challenging conditions. In this category, overdue debt increased by PLN 421.4 million, or 27.4%, reaching nearly PLN 2 billion.
One possible factor is shifting consumer preferences. As mortgage accessibility improves, some households may opt to purchase property rather than continue renting. With rental rates remaining high and debt servicing costs increasing, property managers face mounting financial pressure.
Rising costs associated with vacant units and investment debt servicing are negatively affecting profitability in the rental segment. Liquidity problems in this area may indirectly impact other parts of the market, including contractors involved in new developments.
Recovery Dependent on Financial Discipline
At the current stage of the economic cycle, the key challenge will be maintaining balance between rising demand and responsible financial management. The construction market operates as a system of interconnected vessels – tensions in one segment can quickly spread to others.
Although total construction sector debt exceeds PLN 5.9 billion and remains a significant burden, improved liquidity among contractors provides grounds for cautious optimism. Companies that have survived the most difficult period are now operating in a more stable environment than a year ago.
Ultimately, the pace of new project implementation, continued payment discipline, and effective risk monitoring in the rental segment will determine whether the current signs of improvement evolve into a sustainable and secure recovery across the entire real estate market.
Source: Manager Plus
