Poland Polish housing market slows as projects put on hold

Activity varies significantly across sectors and regions. In some markets, more projects are being put on hold than started. In others, new construction remains clearly ahead. Regional figures can also be skewed by a small number of major projects.

Residential construction slows

Kompas Inwestycji currently tracks more than 1,600 residential projects that have been put on hold and around 2,300 projects at various stages of development.

Over the past 12 months, 936 projects were suspended and 1,219 reached the foundation stage or moved into construction. That means around 77 projects were put on hold for every 100 new starts.

The slowdown is also visible in construction output. In the 12 months to July 2026, the real value of residential construction output fell by around 4 pct. After growing towards the end of last year, construction output declined again in the first half of 2026.

The picture is more positive further up the pipeline.

The most interesting development today is what is happening before construction begins. The number of private residential projects moving into construction remains almost unchanged, but activity in planning and design is increasing. Combined with the number of building permits being issued, this creates a significant pipeline for the coming years. The key question is how many of these projects will actually move into construction.
Andrzej Kaczmarek, construction market analyst at Kompas Inwestycji

In the second quarter, building permits were issued or notifications with construction designs were submitted for around 76,000 residential units. This was one of the highest quarterly levels seen in recent years.

Regional variations in residential construction

The situation varies widely across Poland.

The Łódź region saw the highest ratio of suspended projects to new starts, at 120 pct. More projects were therefore put on hold than launched. In Wielkopolska, the ratio was close to 110 pct, despite the region previously being one of Poland’s most active residential markets.

The same trend is visible in some major cities. Łódź has 83 projects under construction and 79 suspended projects, according to the Kompas database. In Poznań, there are 71 projects under construction and 74 on hold.

In Silesia, the numbers are broadly balanced. Katowice has 38 projects under construction and 33 suspended or abandoned.

The slowdown is also visible in Mazovia. The number of new starts is falling, while Warsaw has 114 suspended projects compared with 72 under construction.

The Opole region has a much lower proportion of suspended projects. However, its market is much smaller, with the Kompas database covering just over 100 residential projects.

Industrial and logistics projects also face delays

The industrial sector has an even higher proportion of projects on hold. Kompas currently tracks almost 1,400 manufacturing projects. Some 33.6 pct are suspended, while 20.6 pct are under construction. There are therefore almost 63 pct more suspended projects than projects under construction.

Over the past 12 months, 228 manufacturing projects were suspended and 316 started construction. Suspensions therefore amounted to just over 72 pct of new starts.

The warehouse market has also seen more projects suspended than launched: 219 compared with 193. Suspended projects were worth around PLN 18.7 bln, compared with around PLN 10.4 bln for new starts.

VidaXL’s PLN 1 bln logistics centre expansion is one of the largest suspended projects monitored by Kompas.

The increase in suspended projects follows several years of rapid growth in Poland’s logistics market. With warehouse supply now beginning to stabilise, the figures suggest the market may be returning to more normal levels of development.

Demand for space remains solid. New leases accounted for 42 pct of take-up, compared with 35 pct for renegotiations. At the same time, fewer speculative developments are being built without tenants secured in advance.

Office market remains under pressure

The office market is seeing an even bigger gap between new starts and suspensions.

The number of new office projects has been falling steadily since 2017. Over the past year, 84 projects were put on hold, compared with just 43 new starts. That is almost two suspended projects for every new one.

Public administration construction is moving in the opposite direction. The number of projects starting in this segment has risen by around 140 pct since 2017. Over the past 12 months, 190 projects started and only 13 were suspended.

Retail parks continue to expand

Retail and service construction has been recovering since the pandemic. One reason is the growing number of smaller retail parks, particularly outside the major cities.

Large shopping centres, meanwhile, are focusing on modernisation and redevelopment. Some hypermarkets are also changing their format, adding building materials and home-improvement products to their offer.

The hotel market is more evenly balanced, with 139 projects suspended and 133 new starts over the past year.

The PLN 3.9 bln redevelopment of Modlin Fortress has a significant impact on the hotel sector’s total investment value.

Public construction remains active

New starts clearly dominate in education. Between August 2025 and July 2026, 404 projects reached the foundation stage or moved into construction, while 50 were suspended.

Healthcare is also seeing a long-term increase in new starts, with relatively few projects being put on hold.

Large projects influence regional figures

A small number of major projects can have a significant impact on regional investment figures.

In Pomerania, the figures have been boosted by the Baltica 2 and Baltica 3 offshore wind farms, with a combined declared value of PLN 44 bln. Together, they account for almost 58 pct of the total value of the 25 largest new starts recorded by Kompas Inwestycji.

In the Łódź region, the PLN 1.59 bln Łódź Railway Hub has a significant impact on the value of suspended projects. In Wielkopolska, logistics developments make up a large share of the biggest projects put on hold.

Regional figures therefore need to be viewed in context. A single project worth several billion złoty can significantly change a region’s investment totals without reflecting a broader change in the local market.

A mixed picture for the construction market

The latest data show a mixed picture across Poland’s construction market. Residential and office construction are slowing, while public-sector projects remain active and the logistics market is moving towards a more balanced phase. At the same time, the growing number of projects in planning and design points to a substantial residential pipeline. The key question is how many of these projects will ultimately move from preparation to construction.