Poles are eager to renovate their homes, despite materials prices going up
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Pandemic favoured renovating houses or flats, and there is no shortage of those willing to continue this trend. More than half of Poles are still planning to carry out renovation works. Such a high demand for materials necessary to carry out finishing works causes the valuation of the construction market and the materials prices themselves to rise.
In 2019, the average shopping basket in the “construction and renovation” category cost PLN 697, while already in 2020 its price increased to PLN 765. Such a difference is a jump of 10%. In 2021, the average shopping basket reached PLN 848, which in turn is an increase of 11%. Such price rises mean that the value of the renovation and construction materials market may this year reach over PLN 100bn. The prices of materials may not decrease significantly in the nearest future, because the continuous demand influences the price increases, and according to “Rzeczpospolita”, already one in two Poles is planning a renovation within 12 months.
The results of the survey conducted by Bricoman Polska and GfK show that the materials market was worth over PLN 84bn last year, and households are responsible for as much as 80% of this result. This means that Poles spend more money only on buying food than on renovations. According to Przemysław Dwojak, Senior Director at GfK, after adding labour expenses to the costs of renovation and construction materials, the obtained amounts would be twelve-digit. This shows that Poles are more willing to spend money on renovating their homes and improving their standard than on travelling or recreation.
Apart from the great interest in renovations, another trend can be observed on the market. More and more people planning a renovation decide to buy necessary products on the Internet. As many as 55% of respondents of the “Rzeczpospolita” survey use the possibility to order materials online.
Building materials reach record prices
Rising prices of transported goods, problems in the supply chain or slowed down transport from China and the United States make the construction industry face serious shortages of components. Many construction materials are in short supply and their scarcity is driving significant price increases. Big jumps in the price of materials, such as polystyrene foam, which has risen by 120%, is one of the most serious challenges currently faced by the construction industry.
The sharp rise in prices of construction materials and problems with their availability are now the most pressing barriers to construction companies’ day-to-day operations. According to construction companies, only problems with the availability of workers, both qualified specialists and those employed for basic works, are less severe.
More:
- The sector at the threshold of large investments in the time of turbulence on the construction materials market. The annual industry debate “6th Forum Building Sector in Poland” is behind us!.
- Building materials’ prices rise again: polystyrene foam up by 120%
More information in PMR reports:
- Price forecasts for the main building materials, Q3 – Q4 2021
- Construction sector in Poland. Market analysis and development forecasts for 2021-2026 (updated each quarter)
- Construction sector in Poland – Regional analysis. Market analysis and development forecasts for 2021-2026
- DIY retail in Poland 2021. Market analysis and development forecasts for 2021-2026
