The rise in prices is also visible in construction. The prices of polystyrene increased by 120 percent during the year and the prices of facade wool by 90 percent, according to an analysis prepared by the Association of Facade Contractors (SWE). As indicated, as a consequence, the price per square meter of new real estate has to increase.
The Association of Facade Contractors in its analysis reported that in November 2020 a cubic meter of polystyrene cost PLN 100. Now you have to pay PLN 220 for the same polystyrene, which means an increase of 120 percent. According to SWE representatives, this tendency will continue as there is still a shortage of polystyrene on the market, used for the production of polystyrene.
The Association pointed out that the same high rates were achieved by facade wool, the price of which increased by 90 percent during the year, and now its square meter (15 cm thick) costs PLN 58.5. In addition, you have to wait up to two months for the delivery of wool. This, in turn, according to the SWE analysis, will translate into delays in implementation and higher costs incurred by contractors, which may ultimately fall on the investor.
Inflation in Poland – building materials
“The prices of building materials are rising exponentially. The carousel of increases not only hinders the activity of construction companies. Ultimately, it will hit the final recipient, because the price per square meter of new real estate must increase” – wrote the analysis.
“Earlier price increases in the construction market showed that the end recipient loses the most. Construction companies implementing long contracts must cover the differences between the submitted offer and the current prices on the market with a margin. Consequently, investments become more expensive and the price per square meter of a flat or commercial property is rising” – added.
According to the president of the Association of Facade Contractors, Grzegorz Tomaszewski, the price jumps are so large that companies are starting to stock up, because no one knows how much the same product will cost in a month. He emphasizes that a year ago, the prices of building materials were also rising, but with a dynamics twice lower than inflation.
He adds that currently, on average, the waiting time for materials and raw materials for the production of building materials is several weeks, even up to several months.
The PSB Handel group informed last weekthat the prices of building materials in October 2021 compared to October 2020 increased by an average of 20.5 percent. The strongest, because by 101 percent. OSB boards increased in price year on year.
The Central Statistical Office announced on Monday that inflation in Poland in October 2021 year on year increased by 6.8 percent.
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