Poland is the second largest construction market among Central and Eastern European countries.
The accumulated value of the construction market for Central and Eastern European countries in 2021, calculated for five analyzed countries – the Czech Republic, Poland, Russia, Slovakia, and Hungary – is nearly €217 billion.
The country with by far the largest construction market in the examined area is Russia, where the construction market in 2021 will reach a value of over €120 billion (a 3.9% year-on-year increase). According to PMR analysts, this represents 55% of the aggregated value of the construction markets of the five analyzed countries in the region.
The second-largest construction market is the Polish market, which will reach a level of €55.8 billion in 2021 (a 3.6% year-on-year increase). These two countries account for over 80% of the construction sector in Central and Eastern Europe.
In terms of the value of the construction market per capita, the ranking of countries in the analyzed area looks significantly different: Russia, originally dominant, clearly falls to the last position, recording more than twice as worse results compared to the leading Czech Republic. Hungary also achieves a favorable result in this comparison, with a per capita value of the construction market exceeding €1,500, and Poland’s result is only slightly worse.
Developers in Poland drive the housing sector in the region
The housing market, along with transportation infrastructure, is the area where the Central and Eastern European region has the greatest backlog and, at the same time, the greatest potential for improvement. An interesting fact is that residential construction only experienced a 5% decline in 2020, which is a relatively good result compared to other industries. Hungary and Poland even managed to record growth in the difficult, pandemic year of 2020.
Non-residential construction most affected by the pandemic
The pandemic caused the largest disruptions in the non-residential construction market. This happened due to an increase in investment risk associated with commercial construction investments. This phenomenon was especially visible in segments directly affected by COVID-19-related problems, such as hotels, retail, and services. On the other hand, the warehouse-logistics segment coped with the crisis the best; thanks to the dynamic development of the e-commerce market during the lockdown period, it received an additional positive impulse for growth.
According to PMR calculations, the total value of the non-residential construction segment in the Central and Eastern European region in 2021 will amount to €64.2 billion (a 12.2% year-on-year decrease), while in 2026 it will already rise to over €90 billion. PMR analysts have compiled a comparison of the basic parameters of the construction sectors for the five countries in the Central and Eastern European region: the Czech Republic, Poland, Russia, Slovakia, and Hungary. The “Construction Market in CEE Countries 2022” report contains a synthetic analysis of the value, structure, and changes occurring in the region’s markets, rankings, comparative overviews, as well as detailed forecasts for each country and segment for the next five years. The basic data has been presented in euros for convenience.
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Construction Business Unit Director