House Construction Cost in 2024: Analysis and Forecasts

We are increasingly considering how global events can affect our local affairs. In the context of construction and the cost of building houses, do events behind our east border have any reflection in the pockets of Polish investors? Is construction in the east of the country cheaper than in another regions? And above all, how much are we going to gotta pay for a square metre of a single-family home in late 2024? We decided to research these issues and prepared an analysis for you on the basis of quarterly construction cost reports, which are regularly prepared by Sekocenbud.

At the outset, it is worth noting that our analysis does not cover the costs associated with the purchase, improvement or connection of the land. Our goal is to focus on the very construction of the house, more specifically on the cost of setting up a single household building with circumstantial parameters. In the prepared calculations, we focused on building a home with a usable area of 151,60 sq m, with a single station garage, erected in the technology of silicone blocks.

What changed in the cost of building a home in early 2024? Consider the most crucial changes:

Zero state:

• The cost of the zero state at the end of 2023 was 58 290 PLN, while at the beginning of 2024 it increased to 59 915 PLN. This is simply a change of 1625 PLN (2.79 percent).

Raw state (open):

• Here we see a much greater leap. The cost of natural state in the 4th fourth of 2023 is PLN 270,661, and in the beginning of 2024 already PLN 284,705. This is an increase of PLN 14,044 (5.19 percent).

Internal finishing state:

• The cost of this part of the construction at the end of 2023 was PLN 233,500, and in the beginning of 2024 increased to PLN 237,836. This is an increase of PLN 4366 (1.86%).

External finishing status:

• Here costs increased from PLN 98 229 to PLN 100,573, which means a change of PLN 2344 (2.39%).

When analysing price developments in the various construction phases, we can see that the biggest increases were recorded in Podkarpacie. The construction of a home in this region, without respect for interior installation works, cost 660 415 PLN in late 2023. At the beginning of 2024, the amount jumped by PLN 22 340 (3.38%) to PLN 682,755. The yearly increase was as advanced as 7.13%, which is close to inflation rates for 2023.

However, it was not only Podkarpacie that the construction costs increased. Growth has besides been seen in another regions, which could be a challenge for investors. Can you effectively optimize and control these costs? 1 of the methods is to conclude a construction contract with the maker of ready-to-use houses or a comprehensive commissioning of works to the general contractor. Both of these approaches let individual cost adjustments to the needs of the investor and minimise the financial hazard of the full investment.

When forecasting construction costs in late 2024, we must take account of the differences between regions. Depending on the location, these increases will oscillate from about 6 to 10-12 percent. We foretell that the net price of a square metre of single-family home at the end of the year will be between 5500 and approx. 6000 PLN, with prices in the largest cities may exceed 6000 PLN for 1 sq m.

In summary, the cost of building houses in Poland increased importantly in early 2024, and forecasts at the end of the year do not give optimistic signals to investors. However, appropriate approaches and informed decisions can aid minimise these costs and guarantee the success of the construction investment.