The construction industry is one of the most energy-intensive sectors in Europe, accounting for as much as 40% of energy consumption and 36% of CO₂ emissions. In an era of global climate challenges and increasingly restrictive regulations, sustainable construction is no longer an option—it is becoming a necessity. However, in Poland, only 16% of construction companies have set specific climate goals, which shows that the industry still has a long way to go before achieving a full transformation.

The production of modular homes in Poland has already reached a significant scale, but most of them are currently exported, mainly to countries where this technology is more widely recognized and where the market has been developing for much longer. Demand for prefabricated buildings in foreign markets is driven primarily by the German market.

Modular Construction—A Solution to the Challenges of the Housing Market

The modular construction market in Poland is growing rapidly, offering an increasingly attractive alternative to traditional building methods. In light of limited growth potential in residential construction, prefabrication is gaining importance due to the speed of project completion, lower costs, and technological flexibility.

Key Data and Trends

• In 2023, approximately 103,300 single-family homes were completed (an 11.4% decrease year-over-year).
• The number of building permits and construction notifications issued for single-family homes totaled more than 90,500 (-22.4% year-over-year).
• For the second year in a row, there was a decline of more than 20% in the number of permits—the 2023 figure was more than 40% lower than the record-high 2021 figure.

Factors Driving the Growth of Prefabrication

• High housing prices and limited supply are driving demand for modular buildings, which are cheaper and faster to construct, especially in the single-family housing segment.
• The housing shortage in Poland is estimated at 1.5–2.0 million units, and the percentage of people living in overcrowded housing is nearly 34% (more than twice the EU average).
• The growing importance of home gardens and the experience of lockdown are drawing the attention of individual investors to modular solutions.
• Eco-friendly multifamily housing—the trend toward zero emissions is motivating developers to opt for prefabrication, which helps reduce waste and CO₂ emissions.

National Recovery Plan – A Boost for the Commercial Sector

• The time pressure to complete the project by the end of August 2026 makes prefabrication and modular construction the preferred choice, as they enable projects to be completed on time.
• EU funds and the National Recovery Plan are stimulating investment in rapid construction technologies.

Value and Forecasts for the Modular Construction Market

• Following a period of slowdown, the market is projected to return to double-digit growth in 2025–2026.
• The implementation of projects under the National Reconstruction Plan (KPO) and growing housing needs will be key drivers of growth.

The Structure of the Modular Construction Market in Poland

Breakdown by Prefabrication Technology (2023)

• 2D System: 58.1%
• 3D System: 41.9%

Breakdown by Construction Material (2023)

• Wood: 57.5%
• Steel: 28.3%
• Concrete and expanded clay concrete: 14.2%

Audience Segmentation

• Residential customers most often choose 2D wooden modules because of the lowest investment cost.
• Developers and commercial investors prefer concrete construction for buildings taller than four stories.

Summary – Prefabrication Is the Future of the Polish Construction Industry

Prefabrication and modular construction address key market challenges: the housing shortage, cost pressures, the need for rapid project completion, and growing environmental requirements. Thanks to rapid assembly, lower costs, and technological flexibility, this segment is poised for dynamic growth—in both residential and commercial construction.

Hume’s Institute stands for knowledge. PMR Market Experts stands for experience. When we join forces, you gain a competitive edge. See how we can support your business.

Hume’s Institute stands for knowledge. PMR Market Experts stands for experience. When we join forces, you gain a competitive edge. See how we can support your business.

Szymon Jungiewicz

Head Construction Market Analyst

The Modular Construction Market in Poland

Market Analysis and Growth Forecasts for 2024–2029

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