Anna Kaminska, Member of the Board of PSB Handel Group, has talked with Property Forum about the process of construction materials in Poland, the rising popularity of modular construction and the demand for ‘green’ products.
Let us start with the most important issue - the prices of building materials. In 2024, some materials became more expensive, and some became cheaper, but the overall trend was nevertheless downward, with average decreases of around 1.8%. In your opinion, will a similar trend continue in 2025 as well?
The Polish market for the distribution of building materials has an annual value of around PLN 70 billion (ca. €16.2 billion) and is subject to intensive consolidation processes, particularly in the DIY segment, which is estimated to be worth PLN 30-33 billion. The five largest companies control around 92% of this segment, with PSB Mrówka in third place with a share of 12-14%. Similar trends can be seen in traditional distribution - the top five companies collectively hold 57% of the market, of which the PSB Group, in second place, controls 19%.
Forecasts for 2025 indicate further growth - according to research firm PMR, the building materials distribution market in Poland will increase by 4.5% and, according to ASM, even by 7.5%. The mortgage lending sector is expected to stabilise at 205,000 loans granted with a total value of PLN 85 billion. This situation has a direct impact on our industry as it affects the number of construction starts and the demand for construction materials. This demonstrates the growing optimism of individual investors and the increased activity of developers. This level of lending is a very positive signal, which allows us to look at the development of the market in the coming months with more confidence.
CSO data for January 2025 confirm the positive trends, indicating a 4.3% year-on-year increase in construction and assembly production. This is a clear sign of stabilisation in the sector after a period of dynamic change and a good prognosis for the coming months.
All in all, 2025 should bring more stability, with prices gradually returning to equilibrium after years of dynamic change in the sector. Nevertheless, short-term fluctuations related to the economic situation and the seasonality of the market are still inevitable. These forecasts allow us to look to the future with moderate optimism while continuing to improve our operations.
In the next 12 months, green building is expected to become one of the leading trends. Stricter ESG regulations will force construction companies to implement green solutions. Is the PSB Group already seeing increased demand for this type of material?
Definitely yes - green construction is one of the strongest trends we are seeing today and will certainly develop even more intensively in the coming year. In the PSB Group, we can already see a clearly growing interest of customers in ecological building materials and energy-saving technologies, which is why we are consistently expanding our offer in this direction.
There is no denying that this is a response to the increasingly stringent ESG regulations, but we also see that the market itself is maturing toward these solutions. Customers, both individuals and contractors, are actively looking for products with a low carbon footprint, although it is fair to say that the offer is still somewhat limited. And this is precisely the big opportunity for us, as we can adapt quickly to the needs of the market and, as a result, build a competitive advantage.
We also attach considerable importance to educating customers and business partners about sustainable construction. We are keen not only to provide them with green products but also to support and advise them, especially in the face of new legislative requirements.
In short, green buildings have ceased to be just a fashionable buzzword and have already become a real market need. For us, it is not only a regulatory obligation but, first and foremost, an opportunity for intensive development, which is why our strategy will move in this direction.
The prefabrication market has been growing in Poland for several years now, and modular construction is starting to gain a larger share in residential and commercial projects. Has prefabricated construction finally shed the label of ’large slab’ and relic of the communist era in Poland?
The market for prefabrication and modular construction in Poland is definitely growing, and the association of this technology with the former ‘large slab’ is now firmly outdated. Prefabrication has become a symbol of a modern approach to construction, which is increasingly being chosen by investors - both residential developers and companies developing large commercial projects. We see this clearly in residential, office, hotel and educational facility developments.
The PSB Group has recognised this change, which is why we have been developing our cooperation with manufacturers of modular elements. We are also trying to build greater market awareness of the many advantages of prefabrication: shorter development times, higher quality workmanship and high cost efficiency. Our observations show that investors increasingly appreciate that prefabricated construction makes it possible to shorten project delivery times by up to 30-50%, which is extremely important, especially now that the pace of project delivery is becoming crucial.
Prefabrication is also a great answer to the needs of the market, which is looking not only for speed but also for higher quality workmanship and greater cost efficiency. I see great potential for growth in this - the market is increasingly keen on prefabrication, and for the PSB Group, this is an opportunity to use this situation as a competitive advantage and become even more firmly embedded in the trend of fast, efficient construction of the future.
What plans does the PSB Group have for 2025? At what stage is the implementation of your standardisation and digitalisation strategy?
The year 2025 for the PSB Group is primarily about continuing to focus on strengthening our market position. Using synergies of activities, modern technologies and strong business relationships, we are continuing our dynamic growth, setting new standards in the distribution of building materials.
We place a strong emphasis on developing modern solutions to support our partners' activities in local markets and adapting our strategy to changing trends in trade and construction. We are focusing on improving operational efficiency and deepening the integration of processes within the network to increase our competitiveness in both traditional distribution and the DIY segment.
Our digitalisation and standardisation strategy is gaining momentum - we aim not only to strengthen our leadership position in the Polish market but also to stay ahead of trends with modern technological and organisational solutions. Digital transformation is, therefore, a key area of our activity. We are developing analytical platforms that enable Partners to manage sales and orders more efficiently. We are introducing automation and artificial intelligence to forecast market trends and developing mobile applications to support outlet management. We are also automating processes in accounting and marketing, allowing our partners to focus on sales development and customer service.
