Tuesday, 20 October 2026
Poland’s construction industry recorded a significant decline in September 2026, with output falling by 9% compared with the same period last year. The latest figures from Statistics Poland indicate that building construction was particularly affected, while infrastructure and specialist construction activities also weakened. The results raise concerns about the pace of development investment as the country enters the final quarter of the year.
The largest reduction was recorded among companies constructing buildings, where production declined by 19.2% year-on-year. This followed a 19.5% decrease in August, suggesting that the difficulties facing building contractors are more persistent than the latest monthly figures alone might indicate. Infrastructure construction fell by 4.1%, while specialised construction activities recorded a 6.1% reduction.
September’s performance represents a substantial reversal from August, when overall construction production increased by 6.6% compared with the previous year. Although output increased by 3% between August and September before seasonal adjustments, the adjusted figures indicate a monthly decline of 7.3%. Across the first nine months of 2026, construction production was 4.7% lower than during the corresponding period of 2025.
The sudden deterioration in infrastructure activity has attracted particular attention. Civil engineering production had increased by approximately 29% year-on-year in August before moving into negative territory in September. Economists have suggested that the timing of investments financed through Poland’s National Recovery Plan may have influenced the results. Projects approaching funding deadlines could have generated unusually high activity during August, leaving September with a weaker comparison.
However, the slowdown cannot be attributed entirely to public investment schedules. Building construction has experienced substantial declines for two consecutive months, indicating wider difficulties in maintaining construction workloads. The official figures do not identify individual property sectors, making it impossible to determine precisely how much of the reduction relates to residential developments, offices, logistics facilities or other commercial buildings.
Separate housing statistics provide a more balanced picture of residential development. During the first nine months of 2026, approximately 149,200 homes were completed in Poland, representing an increase of 3.1% compared with the previous year. Developers delivered around 91,900 of these properties, an annual increase of 1.2%. Housing starts rose by 4.5%, while the number of permits and qualifying construction notifications increased by 12.3%.
These figures indicate that residential development continues despite weaker construction production. The difference partly reflects the time required to complete projects. Homes delivered this year may have entered construction several years earlier, while recently approved developments may not contribute significantly to construction output until subsequent periods.
The industry is also experiencing continued increases in construction prices. Statistics Poland reported annual price growth of 6.9% in September, including increases of 6.7% for building construction, 6.5% for civil engineering and 7.7% for specialised construction work. Consequently, reduced activity has not yet translated into lower construction prices across the sector.
For property developers, this creates additional uncertainty when evaluating new investments. Construction budgets remain under pressure even as contractors experience reduced workloads. The situation is particularly relevant for projects requiring substantial upfront financing, where development costs must be balanced against expected sales prices, rental income and investment returns.
Market research also points to differences between individual property sectors. While some residential projects have been postponed, new developments continue to enter construction. Office and logistics schemes have also experienced delays, although available evidence does not establish that these markets are experiencing declines comparable to the overall building construction figures.
The distinction between current construction activity and future development plans is becoming increasingly important. A reduction in work carried out during September does not necessarily mean that an equivalent proportion of planned investments has been cancelled. Developers may continue preparing projects, obtaining approvals and securing financing while postponing the commencement of physical construction.
Poland’s results also reflect some of the pressures affecting the wider European construction industry. Eurostat reported annual growth of 2.6% in overall EU construction production during August 2026, although building construction declined by 4.1%. While the reporting periods differ, the figures suggest that difficulties in building development extend beyond Poland.
The outlook for the final months of 2026 will depend partly on the progression of infrastructure programmes and the willingness of private investors to proceed with new developments. Further data will be needed to establish whether September’s decline was amplified by the timing of public investment expenditure or reflects a more sustained reduction in construction demand.
For Poland’s commercial real estate market, the most important concern is the continued contraction in building construction. Two consecutive months of declines approaching 20% indicate substantial pressure on contractors, even as residential permits and construction starts suggest that future development activity has not come to a standstill.
The September figures therefore reveal an industry facing uneven conditions rather than a uniform downturn. Infrastructure spending, residential construction and commercial development are responding to different investment pressures, while rising construction prices continue to complicate decisions about when and how to proceed with new projects.
