The single-family housing boom is over – eGospodarka.pl

There has probably never been such a sudden collapse in single-family homes in Poland. GetHome.pl established this in the first half of this year. the number of permits for the construction of single-family homes has fallen by no less than 21% compared to the same period last year.

Also read:

How much does a new house in a big city cost?

The COVID-19 pandemic has sparked Poland’s desire to have a home of their own where they can feel safe. In addition, remote working has become popular. That is why the number of permits for the construction of single-family homes has risen sharply in 2021. Unfortunately, it seems that this year the decline in permits will be just as strong – says Marek Wielgo, an expert of the GetHome.pl portal.

The portal learned from the General Bureau of Construction Supervision (GUNB) that, according to preliminary data from across the country, there were just over 48.6 thousand in the first half of the year. permits for the construction of single-family houses. The problem is, GUNB was trading close to 61.8 thousand in the same period a year ago. these kinds of decisions. This represents a drop of 21%. It wasn’t that violent, even after the outbreak of the financial crisis in 2009, when banks cut the tap on credit.

photo: mat. press releases

Number of permits for the construction of single-family homes in the first half of the year

Just over 48.6 thousand were issued in the first half of the year. permits for the construction of single-family houses.

I am afraid that many licensed investors will refrain from building. Why? This is effectively discouraged not only by the more expensive loans and the uncertainty about the economic consequences of the war in Ukraine. The main reason seems to be the rising price of some important building products. In such conditions, it is difficult to estimate the cost, so only the bravest will decide to build – the GetHome.pl expert notes.

He admits that last year many construction products rose at a rate unprecedented in nearly 15 years. The war is exacerbated by the supply chain disruptions created during the pandemic. The most expensive materials in demand worldwide, ie steel, wood or polystyrene.

According to data from the Intercenbud website, which analyzes suppliers’ prices and construction contractors’ cost estimates, steel products were on average 96.4% more expensive in the second quarter than in the corresponding period last year, insulation materials – by 53.5 %, and wood – by 52.2%.

Change in average prices of products used in construction in Q2 2022 / Q2 2021

photo: mat. press releases

Change in average prices of products used in construction in Q2 2022 / Q2 2021

According to data from the Intercenbud website, in the second quarter, steel products were on average 96.4% more expensive than in the corresponding period last year, insulation materials – by 53.5% and wood – by 52.2%.

Grzegorz Lusa from Intercenbud calculated that due to these increases the costs of building a single-family house with a total surface area of ​​120 m² have increased by an average of 25% in the past year! Unfortunately, with high inflation, some materials also become more expensive due to the increase in production costs. Admittedly, in the second quarter, compared to the first quarter, wood was cheaper by just over 3% and plaster products by almost 5%.

Change in average prices of products used in construction in Q2 2022 / Q1 2022

photo: mat. press releases

Change in average prices of products used in construction in Q2 2022 / Q1 2022

The prices of steel (by more than 53%), concrete products (by almost 29%), insulation materials (by approximately 24%) and woodwork (by more than 23%) rose sharply.

The prices of steel (by more than 53%), concrete products (by almost 29%), insulation materials (by approximately 24%) and woodwork (by more than 23%) rose sharply. Fortunately, the stone prices are not going crazy. According to Intercenbud data, the price of ceramics increased by 2.2% in the second quarter and for the full year the increase was 4.5%.

The GetHome.pl expert points out that single-family homes should stimulate the government’s “House without formalities” program, which will take effect from January 3, 2022. It provides facilities for investors who decide to build a detached house with a built-up area of ​​up to 70 sqm. GUNB reported that they reported the construction of 439 such houses in the first half of the year. They represent less than 1% of all homes for which a building permit has been issued or submitted.

It is worth recalling that only seven years have passed since the entry into force of the amendment to the Construction Act, which allows the construction of single-family houses for notification, ie without a permit. They can be of any size. In the first half of the year, GUNB recorded only less than 4.1 thousand. such reports.

Marek Wielgo, portal expert

Leave a Comment