Record-high €1.8bn to be spent on the construction of public buildings in Poland in 2012

After several years of annual growth rates in the range of 20-30%, the public building construction market slowed in 2011-2012. The market is expected to grow by some 3% to a record-high level of PLN 7.5bn (€1.8bn) in 2012. However, the public building construction market will see a correction in the wake of the end-phase of the EU funds and the rising debt levels of local governments. The sector is not likely to recover until 2015.
The public building construction market is poised to hit a record-high market value of PLN 7.5bn (€1.8bn) in 2012, showing year-on-year growth of 3% in real terms, according to “Public buildings construction in Poland 2012 – Development forecasts for 2012-2015”, a report recently released by our company. However, the segment is going to face a big challenge in the years ahead due to a wide range of factors including EU co-funded projects reaching completion, the looming fiscal tightening and high levels of debt of local governments.

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