How many flats were sold by developers in the first half of the year in Poland

What sales results did flat builders achieve in the first half of 2023? How does this year's sales volume compare to the result recorded in the first half of last year? What factors most determine the current level of demand and drive up sales?

Tomasz Kaleta, Sales Department Director, Develia S.A..
In the first six months of 2023, we sold 1184 flats compared to 964 that went to buyers in the same period last year, an increase of 23 per cent. We managed to achieve this result by maintaining a wide, diversified offer for all groups of buyers in the cities where we carry out our investments. In terms of factors driving up sales of units, I would point first and foremost to the overhang of unconsumed demand as a result of the market downturn in 2022. Thanks to the loosening of the provisions of Recommendation S and the greater availability of mortgages, many buyers can return to their purchase plans. The increase in the number of transactions at property developers is also a result of the strong interest in the 2% Secure Credit programme.

Boaz Haim, CEO of Ronson Development
In the first two quarters of 2023, we sold a total of 494 units, which is 12 per cent better than what we recorded in the whole of last year. When we compare the first half of 2023 to the same period in 2022, we see an increase of 131 per cent, which only confirms that we are currently experiencing a very strong market rebound. In the second quarter of this year alone, we sold 271 units and handed over 341 flats. The demand side was certainly boosted by the 2 per cent Secure Credit programme, which in the first half of this year in our sales offices accounted for around 40-50 per cent of reported demand.

Angelika Kliś, board member of Atal S.A.
In the first half of 2023, we contracted 1142 flats. In Q2 this year, it was 740 flats. In Q2 2022, the contracting amounted to 582 units. In line with our expectations, contracting increased significantly in the second quarter of this year due to, among other things, the more lenient policy of banks in the context of mortgages, our proprietary Czas na mieszkanie programme and the new government programme - Safe Credit 2 per cent. These programmes have strongly boosted traffic in our housing sales offices.

Cezary Grabowski, Sales and Marketing Director of Bouygues Immobilier Polska
The first half of this year has been a very satisfactory period for us in terms of sales. For six months of this year, we sold more flats than in the whole of 2022. This fact was influenced by the accumulation of several factors. First and foremost, the loosening of credit policy and a halt to interest rate rises played a major role. This made customers supporting themselves with credit when buying flats active again. An additional impulse was also provided by the launch of the 2% Safe Credit programme, thanks to which people interested in buying a flat again appeared on the market in search of premises meeting the price criteria of up to PLN 700,000 and PLN 800,000.

We have noticed this especially in Poznań in the Lune de Malta estate and in Warsaw in the Nova Talarowa project, where we have the largest number of flats in this price range. It is also worth emphasising that the high level of sales of our flats in the first half of this year is also the result of our strategy, which involves constant monitoring of the market and designing such estates where Poles want to live. Our investments are located in well-communicated areas of cities and near green areas. We invest in the high standard of the buildings and the areas adjacent to them, and focus on compact flats, which are by far the most popular among customers.

Zuzanna Należyta, commercial director at Eco Classic
Compared to the same period last year, sales increased by 32 per cent. Factors behind the return of those willing to buy apartments were the change in the KNF's recommendation, relaxing the way creditworthiness is calculated, the announcement of the introduction of the 2 per cent safe credit programme and the fact that the price reductions expected after the outbreak of the conflict in Ukraine did not take place.
The changes to credit triggered buyers benefiting from bank support, while the increase in demand among these customers, convinced investment buyers and customers who had put their own purchase decisions on hold to return to the market.

Małgorzata Ostrowska, Director of the Marketing and Sales Division at J.W. Construction
In the first half of this year, we performed better than planned. At the same time, we saw an improvement in our sales statistics compared to the same period in 2022. Our sales are currently driven mainly by investment properties, such as Pileckiego 59 in Warsaw, which generated 25 per cent of total sales in the first half of the year. There was also a great deal of interest in the 'Stacja Centrum'estate in Pruszków, where flats were just as likely to be bought for investment purposes as for meeting personal needs. Today, in this estate, we are already observing a predominance of customers buying their first flat, using a 2 per cent loan.

The level of demand in the second half of the year will be influenced precisely by the safe credit programme, which, in our opinion, will translate into greater interest in the purchase of flats, especially by those who delayed their purchase decision until the economic situation stabilised and an attractive credit offer was introduced, mainly due to a lack of creditworthiness before the introduction of this financing. Currently, the creditworthiness of these customers has increased by around 40 per cent.

Ludwinski, Sales and Customer Service Director at Archicom
There is certainly a release of demand for real estate currently taking place in the market. In the first half of 2023, we sold 568 flats, recording an increase of almost 7 per cent compared to the same period a year earlier. Sales performance is also increasing on a quarterly basis from the third quarter of 2022 onwards, confirming that the trend is continuing.

Today, we are also seeing a gradually declining supply, which is the result of, among other things, a limited pace of new launches in the second half of 2022, but also greater interest in property purchases, which has been influenced on several levels by, among other things, the government's First Housing programme. Those qualifying for a concessionary loan are eager to take advantage of this type of financing, while other buyers are definitely speeding up their purchase decisions due to the melting stock of available flats on the market. Of course, investors are also active. There is no indication that interest rates are set to rise. There has also been a release of some of the cash from last year's bonds, so this is an optimal time to diversify the investment portfolio, including through the purchase of real estate.

Bartosz Kuźniar, CEO of Lokum Deweloper
In the first half of this year, we contracted 362 flats, a result that was more than 100 per cent better than the sales recorded in the first half of 2022. In the second quarter of this year alone, we signed 206 preliminary and development agreements, more than 30 per cent more than, both in the first quarter of this year and the fourth quarter of 2022. We are recording an increase in sales from quarter to quarter. Our results reflect the current situation on the property market. Every month there are more and more people willing to buy a flat. After a difficult 2022, the situation for our customers is changing. The biggest contributors to this have been the easing of Recommendation S regarding the criteria for creditworthiness tests and the halt in interest rate rises, which has translated into significantly greater availability of mortgages.

In addition, the deceleration of the inflation rate and the announcement and introduction of the 2 per cent Secure Credit scheme are encouraging decisions to implement deferred purchase plans. The government's loan subsidy has aroused considerable interest among those purchasing their first home. It has also mobilised those who will not be able to benefit from the subsidy, but who want to purchase a flat before the beneficiaries of the programme enter the market, so that they can protect themselves against a depleted offer and significant price increases.

Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at Robyg Group
In the first half of 2023, the TAG Immobilien Group sold 1,816 flats on the Polish market, recognised more than 860 units in revenue and signed more than 1,520 lease agreements for premises. During this period, we signed 1670 reservation agreements and 1480 development and preliminary agreements in Warsaw, the Tri-City, Poznań and Wrocław; Robyg also recognised more than 720 units in revenue.

Vantage in H1 2023 sold 146 units and recognised approximately 140 units in revenue. At the end of June 2023, it had more than 2020 units under lease and a total of more than 2280 units on offer.

In May 2023, Robyg signed a joint venture agreement with a fund managed by Centerbridge Partners, LP to invest in a portfolio of residential properties. Centerbridge was one of the investors in Bricks Acquisitions Limited, which is a previous shareholder of Robyg. The joint venture will develop projects within Robyg's current developments, as well as invest in new properties acquired from other parties. Initial investments will include properties with more than 100,000sq.m. PUM in the Tri-City and Warsaw. The parties plan to increase this area to 200,000 sq.m. PUM. PUM, and the target investment value will be a minimum of USD 100 million.

Source: The poll was prepared by the real estate website dompress.pl
Photo: Pileckiego 59, JW Construction