Construction materials prices in Poland: What awaits us in 2024?

The construction materials marketplace in Poland is very volatile, which in 2024 continues to surprise. Although there is simply a trend in price increases in many industries, the situation in the second half of the year is rather different for many building materials. In October 2024 was reported price decreases building materials in different marketplace segments, despite continued inflation, which may be amazing to many investors, contractors and consumers.

October data on building materials prices

The PSB Group (Polish Composition Group), 1 of the leading chains of building materials wholesalers, reported that the average price dynamics of construction materials in October 2024 was - 1%. compared to the same period in 2023. This phenomenon was more visible in the retail segment, where prices fell by 1.4%. In the wholesale channel, the decrease was 0.7%. This is simply a backward trend which, despite the advanced inflation projections, indicates any stableness in the construction sector.

The deficiency of crucial changes compared to September 2024 is besides surprising. Material prices per period remained almost at unchanged level – change was only -0.1%. On a yearly basis, compared to the erstwhile year, the price decrease is 1.9%, which represents a crucial change in the context of long-term trends.

Price differences in construction materials

Although the overall trend indicates a fall in prices, not all construction material categories follow this direction. Among the materials that in October 2024 improved, they are mainly found OSB discs, wood, cement and lime. For wood and OSB, prices increased by 12%, which is the consequence of increased request for these natural materials as a consequence of housing improvement and renovation. Price increase by 5% was besides recorded in the cement and lime segment.

On the another hand, prices of construction materials related to thermal insulation is finishing noted any of the largest declines in fresh months. In the insulation category, prices decreased by 6%and in the finishing section o 6%, which may consequence from little interest in these areas in the face of expanding labour costs and materials.

Why have prices fallen despite inflation?

In 2024 the prices of many building materials decreased, which may surprise, especially in the context of general inflation, which inactive affects the Polish market. This phenomenon can be the consequence of respective factors. First of all, Economic downturn in Poland and the world, the request for certain materials has been reduced. Many construction investments were delayed or stopped, resulting in oversupply of any materials on the market. In addition, Increased competition among manufacturers of building materials and wholesalers can besides contribute to the price reduction.

The fall in prices is besides associated with cheaper transport costs, which in the second half of 2024 decreased somewhat after earlier increases. In addition, new, cheaper alternatives were emerging in the construction materials market, which increased competition among manufacturers and distributors.

Construction materials prices in 2024 in the long term

However, falling prices in 2024 does not mean that the prices of construction materials will grow indefinitely in the future. According to PSB, the prices of selected building materials inactive can Increase. In particular, products related to the construction of houses, specified as cement is limewhich can inactive cost more as a consequence of rising energy costs and the extraction of natural materials. Investors and contractors must besides face inactive advanced labour costs that will affect the final price of materials.

It is worth noting that although the prices of building materials have fallen by 1.9% in the last 10 months, the prices of any elements, specified as paints is lacquers, window joinery and construction chemistryThey're inactive growing. Deductions in another categories specified as Isolation, construction toolswhether roofs point to an uneven improvement of the marketplace which continues to respond to changes in request and supply.

What will be the future for the construction market?

At the end of 2024 forecasts indicate that falling prices of building materials may persist for further months, in peculiar in segments related to thermal insulation, finishing and any building elements. However, more cannot be excluded over the longer word price increases, in peculiar in the context of upcoming changes in environmental regulations and fresh construction standards.