Poland’s Housing Construction Market Shows in Q1 2026: Completions Down Slightly, Starts Down 11.4%, Permits Up 8.8%

In the first quarter of 2026, Poland’s residential construction market entered a phase of clear divergence between current building activity and investment plans. The number of dwellings completed fell slightly, the number of dwellings whose construction was started declined by double digits, while the number of dwellings covered by building permits increased. In non-residential construction, the situation was more mixed: more buildings were completed, but their total usable floor area decreased.

According to Statistics Poland, 45,500 dwellings were completed in the first three months of 2026. This was 0.8% fewer than in the same period of the previous year. The decline in the number of completed units was therefore modest, but more important signals come from data on new investment activity. In the first quarter, construction began on 49,400 dwellings, 11.4% fewer than a year earlier.

At the same time, the number of dwellings for which building permits were issued increased. In the period under review, permits covered 68,700 dwellings, 8.8% more than in the first quarter of 2025. This means that although current construction activity is weakening, the pipeline of future projects remains relatively strong.

Slightly Fewer Dwellings Completed, but Total Floor Area Increased

In the first quarter of 2026, 45,540 dwellings were completed. Their total usable floor area reached 4.2 million square metres, 1.2% more than a year earlier. This means that despite the slight decline in the number of completed units, the average size of newly completed dwellings increased.

The average usable floor area of a completed dwelling was 92.5 square metres. A year earlier, it was 90.8 square metres. However, the differences are very large depending on the type of construction. In single-family buildings, the average floor area of a dwelling was 129.0 square metres, while in multi-family buildings it was 51.5 square metres.

The highest number of dwellings was completed in Mazowieckie Voivodeship, which accounted for 20.2% of the national total. It was followed by Dolnośląskie, with a share of 10.6%, and Małopolskie, with 10.5%. The smallest share was recorded in Opolskie Voivodeship, at 1.9%.

The number of dwellings completed per 1,000 population stood at 1.2 for the country as a whole. The highest values were recorded in Dolnośląskie and Mazowieckie voivodeships, with 1.7 dwellings per 1,000 residents each. The lowest rates were recorded in Warmińsko-Mazurskie and Zachodniopomorskie, at 0.8 each.

Developers Continue to Dominate Completed Housing

The largest share of completed dwellings consisted of units intended for sale or rent. There were 26,431 such dwellings, representing 58.0% of the entire market. Individual construction accounted for 17,859 dwellings, or 39.2% of the total.

Other forms of construction played only a marginal role. Social rental construction delivered 885 dwellings, cooperative construction 194, company housing 101 and municipal housing 70. Together, these segments accounted for 2.8% of dwellings completed.

Compared with the first quarter of 2025, the number of dwellings built by individual investors increased by 5.6%. A decline was recorded in the segment of dwellings intended for sale or rent, where the number fell by 4.5%. The data therefore show a slight shift towards individual construction, although developers remain the largest group of investors.

The highest share of construction intended for sale or rent was recorded in Dolnośląskie and Mazowieckie voivodeships. In the former, developer-built dwellings accounted for 73.1% of completed units, while in the latter they represented 69.2%. Individual construction was most significant in Podkarpackie, Świętokrzyskie, Podlaskie and Kujawsko-Pomorskie voivodeships.

More Residential Buildings Completed, but Construction Times Remain Long

In the first quarter of 2026, 21,800 new residential buildings were put into use. This was 2.2% more than a year earlier. Single-family buildings accounted for the overwhelming majority, with a share of 97.7%.

Improved traditional technology remains the dominant construction method. It was used in 98.0% of new residential buildings. Wooden structures represented only a small part of the market: 393 such buildings were completed, containing 396 dwellings.

The average construction time for a new residential building was 44.1 months, 0.3 months shorter than a year earlier. However, the difference between single-family and multi-family construction remains very large. The construction of a single-family building took an average of 49.7 months, while a multi-family building took 29.7 months.

The data also show that although multi-family buildings accounted for only 2.3% of the number of new residential buildings completed, they contained almost half of all dwellings located in newly completed residential buildings. A total of 20,800 dwellings were delivered in 507 multi-family buildings.

Clear Decline in the Number of Dwellings Started

The most worrying element of the data for the first quarter of 2026 is the decline in the number of dwellings whose construction was started. Over the three-month period, construction began on 49,400 dwellings, 11.4% fewer than a year earlier.

The largest share of new projects consisted of dwellings intended for sale or rent, which accounted for 62.6% of all dwellings started. Individual construction accounted for 34.1%. Other forms of construction — cooperative, municipal, social rental and company housing — together represented 3.3%.

The decline in the number of dwellings started may indicate investor caution, especially in an environment of high financing costs, uncertain demand and still elevated construction costs. At the same time, it does not automatically mean a market collapse, as permit data point in a different direction.

More Building Permits Issued for Dwellings

In the first quarter of 2026, building permits were issued for 68,700 dwellings. Their total usable floor area amounted to 5.9 million square metres. Year on year, this represents an 8.8% increase in the number of dwellings covered by permits and a 9.0% increase in their floor area.

New residential buildings are expected to account for 98.7% of the dwellings covered by permits. The remaining units will be created, among others, in new non-residential buildings, collective residence buildings and buildings undergoing extension or redevelopment.

Multi-family buildings play an important role in the structure of planned dwellings. Although they account for only 2.9% of new residential buildings covered by permits, they represent 51.7% of the dwellings planned in new residential buildings.

The average size of a dwelling planned in a single-family building is 119.9 square metres, compared with 54.0 square metres in a multi-family building. Dwellings intended for sale or rent accounted for 68.6% of units covered by permits, while individual construction represented 29.8%.

Non-Residential Construction: More Buildings, Less Floor Area

In non-residential construction, data for the first quarter of 2026 are ambiguous. A total of 5,000 new non-residential buildings were put into use, while 557 such buildings were extended. The number of new buildings increased by 3.1%, and the number of extended buildings rose by 4.3% year on year.

At the same time, the total usable floor area of new and extended non-residential buildings amounted to 3.1 million square metres, 11.5% less than in the first quarter of 2025. This means that more buildings were completed, but on average they were smaller or belonged to segments with lower floor area.

Industrial and warehouse buildings dominated the structure of usable floor area in non-residential buildings completed. Their share was 45.6%. Other non-residential buildings ranked second, with a share of 22.2%, followed by wholesale and retail trade buildings and service buildings, at 13.3%.

The largest usable floor area of non-residential buildings was completed in Mazowieckie, Śląskie and Wielkopolskie voivodeships. In Mazowieckie, the figure was 539,000 square metres, in Śląskie 346,200 square metres and in Wielkopolskie 312,300 square metres. The smallest areas were recorded in Lubuskie, Świętokrzyskie and Warmińsko-Mazurskie voivodeships.

Office Buildings Rebounded, While Industrial and Warehouse Buildings Weakened

In the first quarter of 2026, the office building market recorded an increase in the total floor area put into use. A total of 85 new office buildings were completed, 22.0% fewer than a year earlier, but their usable floor area reached 130,800 square metres, an increase of 34.5%. In addition, 25 office buildings were extended, and their floor area rose by 343.4% year on year.

The total area of office buildings put into use increased by 44.3%. The largest shares were recorded in Dolnośląskie, Mazowieckie and Śląskie voivodeships. Dolnośląskie accounted for 23.1% of the national office space completed.

The situation was different in industrial buildings. A total of 176 new industrial buildings were completed, 19.6% fewer than a year earlier. Their usable floor area was 553,600 square metres, 25.4% lower than in the first quarter of 2025. The total area of industrial buildings put into use declined by 24.8%.

A decline was also recorded in warehouse buildings. In the period under review, 533 new and 67 extended warehouse buildings were completed. The floor area of new facilities amounted to 694,200 square metres, 31.2% lower than a year earlier. The total area of warehouse buildings put into use fell by 25.2%.

Trade and Service Buildings Show Positive Growth

Better results were recorded in the segment of wholesale and retail trade buildings and service buildings. In the first quarter of 2026, 461 new buildings of this type were put into use. Their number was 5.3% lower than a year earlier, but their usable floor area increased by 19.7% to 372,400 square metres.

A further 113 trade and service buildings were extended, 11.9% more than a year earlier. Their floor area increased by 8.5%. Overall, the floor area of trade and service buildings put into use was 18.4% higher than in the first quarter of 2025.

The largest areas in this category were completed in Mazowieckie and Śląskie voivodeships. Mazowieckie accounted for 17.8% of the national total, while Śląskie represented 14.1%. The smallest shares were recorded in Warmińsko-Mazurskie and Opolskie voivodeships.

Permits for Non-Residential Buildings: Less Floor Area Despite More Projects

In the first quarter of 2026, permits were issued for the construction of 7,300 new non-residential buildings. This was 6.9% more than a year earlier. However, their total planned usable floor area was 3.9 million square metres, 2.3% lower than in the same period of 2025.

Industrial and warehouse buildings accounted for the largest share of planned floor area, at 42.9%. Other non-residential buildings ranked second, with a share of 23.1%, followed by trade and service buildings, at 15.6%.

On an annual basis, the planned floor area of several categories of buildings declined. The largest drop concerned office buildings, where the area covered by permits was 34.0% lower than a year earlier. Declines were also recorded in transport and communication buildings, cultural, educational, medical and sports facilities, hotels and other non-residential buildings.

The largest floor area of new non-residential buildings covered by permits is planned in Mazowieckie Voivodeship, at 803,000 square metres. It was followed by Wielkopolskie, Małopolskie, Dolnośląskie and Śląskie. The smallest planned floor areas were recorded in Opolskie, Warmińsko-Mazurskie and Świętokrzyskie voivodeships.

Construction Market Sends Mixed Signals

Statistics Poland’s data for the first quarter of 2026 show a construction market in transition. In residential construction, the number of completed dwellings fell only marginally, but the stronger decline in the number of dwellings started may suggest investor caution. At the same time, the increase in the number of dwellings covered by permits indicates that the potential for future supply remains significant.

In non-residential construction, the picture is even more varied. The office and trade-service segments recorded growth in the floor area completed, while industrial and warehouse buildings saw declines. In permit data, however, there is a visible shift towards industrial and warehouse projects, which still account for the largest share of planned floor area in new non-residential buildings.

The first quarter of 2026 therefore does not provide a clear picture of either a recovery or a sharp downturn. The market remains active, but more selective. Investors are continuing some projects, starting new construction more cautiously and, at the same time, securing permits that may be used in the coming quarters if demand and financing conditions improve.

Data source: Statistics Poland, “Construction in the First Quarter of 2026”, preliminary data.

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