Polish Construction Sees Another Lacklustre Month In May
Date
6/24/2024 6:43:40 AM
(MENAFN- ING)
Construction production broken down by sector shows Real estate developers continuing to report low activity. Building construction decreased by 5.4% year-on-year after -5.9% YoY a month earlier. According to companies analysing the real estate market, apartments for sale rose much faster than they were sold at the beginning of the year. In some cities, the number of apartments on offer is approaching record highs. The large increase in housing prices at the turn of 2023/2024 means that even with public support, many people cannot afford their own property. At the same time, the launch of the new government mortgage support programme remains unknown.
The civil engineering construction sector – related mostly to public investments – decreased by 6.6% YoY after an increase of 7.8% YoY a month earlier. The favourable calendar arrangement was most likely responsible for the large rebound in this category in April. In May, calendar effects had a negative impact. Moreover, the launch of Recovery and Resilience Facility (RRF) projects and the new EU budget unfortunately remains slow.
Overall, we believe that we'll likely need to wait until 2025 to see a rebound in construction, when the absorption of EU funds should pick up.
MENAFN24062024000222011065ID1108365004
Author:
Piotr Poplawski, Rafal Benecki
*Content Disclaimer:
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more here: https://think.ing.com/about/disclaimer/
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.