The year-long stabilization of construction material price dynamics at a slight negative level seems endless. This means that in May, the downward trend of a fraction of a percent year-on-year was maintained. Meanwhile, as experts from the RynekPierwotny.pl portal indicate, there is little evidence that this situation will change radically before the launch of the announced infrastructure investments funded by EU funds.
According to data published by the PSB Group, the average year-on-year price dynamics of construction materials in May recorded another slight decline, this time by 0.7%. In the retail channel, prices fell by 0.7%, while in the wholesale channel, the drop was 0.5%. As a result, average month-to-month price changes are close to zero.
Price increases in May 2025 compared to May 2024 were noted in only four product groups, prices remained unchanged in three categories, while declines occurred in thirteen groups. Such proportions indicate a strongly established but decidedly moderate downward trend.
The largest price decreases were observed for thermal insulation (-5.5%), finishes (-4.1%), and lighting and electrical materials (-3.6%). Meanwhile, the biggest increases were seen in OSB boards and wood (+9.2%) and cement and lime (+3.6%).
A recently published opinion by the Polish Association of Construction Employers (PZPB) reports the most serious crisis in the domestic construction sector since 2016. Its main symptoms are declining production capacity utilization in large contracting companies, stagnation in public and private investments, and a lack of a coherent government strategy, which allegedly led to the paralysis of the entire sector. Without decisive government action, the domestic construction industry—one of the key pillars of the economy, responsible for 10% of GDP and employing over one million people—faces a prolonged economic downturn.
Meanwhile, as experts from RynekPierwotny.pl point out, confirmation of the weakening condition of the domestic construction sector can be found in the latest GUS housing construction data for May. It is hard not to notice declining builder confidence in housing for sale or rent. Visible regressions in starts, permits, and completed units suggest increasing operational caution among developers, possibly responding to economic uncertainty, rising construction costs, or interest rate expectations.
In the current situation, everything suggests that as long as the widely anticipated investment boom in road, rail, energy, military, and housing construction sectors funded by EU money does not become a reality, prices in the domestic construction materials market will remain stable with a slight downward tendency.
Unfortunately, as assessed by PZPB, the rebound in the infrastructure segment is already overdue by several months, confirming systemic and multi-level governmental failure over many years. In this situation, one can only hope that the construction market recovery fueled by funds from the Recovery and Resilience Plan (KPO) will finally materialize and will not turn out to be the proverbial “waiting for Godot.”
Author: Jarosław Jędrzyński, expert at RynekPierwotny.pl
Source: ceo.com.pl
