Poland: With what results did property development companies close the first half of 2024

With what results did property development companies close the first half of 2024? How does the balance compare to the results achieved in previous quarters? Have results been affected by the postponement of the new borrower support programme? Will companies meet this year's targets?

Tomasz Kaleta, managing director of sales and marketing at Develia:
In the first half of 2024, the company sold 1,949 units against 1,184 contracted in the first half of 2023, an increase of 65 per cent. In the second quarter alone, sales amounted to 911 units against 651 in the same period last year, an increase of 40 per cent.

We are pleased with the result achieved, all the more so given that some customers may have been holding back their decision to buy a flat in recent months while waiting for the Loan to Start programme. As it has been postponed until next year, we expect the market to stabilise in the coming months. At the same time, after the first half of the year, we are confident of achieving the sales target of 2,900-3,100 flats that we have set for this year. We have a product well suited to the diverse needs and expectations of customers in the markets of the largest cities, including Warsaw and Krakow, where there is still a lack of offer.

Zbigniew Juroszek, CEO of Atal:
The Atal Group contracted 1289 units in the first half of 2024. A year ago, it was 1136 flats. This year's sales plans assume contracting at a level similar to last year's. Since the beginning of this year, i.e. during the period without the buyer support programme, we have recorded stable results and unrelenting activity from customers. This confirms our position that the government programme is not a decisive factor for contracting in our case. We are of the opinion that it will not play as crucial a role as some commentators have predicted. What would definitely improve the demand and supply situation is a reduction in interest rates and, as a result, a reduction in the cost of mortgages (customers) and investment loans (developers).

Dawid Wrona, Chief Operating Officer at Archicom:
Archicom's strategic plans remain as relevant as possible. We aim to achieve sales of 3,000 flats still this year and to exceed the 4,000 units sold mark in 2025. Achieving these targets will bring us closer to our overarching goal of being the market leader in residential real estate in Poland.

We concluded 472 sales agreements in the second quarter of 2024 and 882 in the entire first half of the year, thus recording growth in both periods under review. We finalised 448 sales agreements in the first quarter of 2023 and 822 in the first half of the year. We ended the second quarter of this year with 65 handed over units, and the total number of units handed over in the entire six months amounted to 479. The year-on-year decrease in this regard is a direct result of the handover schedule adopted.

Małgorzata Ostrowska, Director of the Marketing and Sales Division at J.W. Construction:
In the case of the property development industry, it is difficult to compare year-on-year financial results, as they largely depend on how the investment portfolio and the progress of work in individual projects look in a given year. Therefore, each year looks a little different in our company.

In the first half of 2024, we met our sales targets. In planning them, we took into account the scenario that the new loan programme might not see the light of day. We stand by our targets for this year, nevertheless we will certainly offer customers an interesting alternative to the government programme.

Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at Robyg Group:
In the first half of 2024, TAG Group in Poland had around 3,900 flats and commercial units under construction. The Group's rental portfolio amounted to 2,559 units at the end of Q1 2024. In 2024, we plan to sell 2,300 units and increase our rental portfolio by 1,000 units.

In 2024, we intend to develop new projects and phases for around 5 000 flats. We have a large land bank - for more than 25,000 units and we regularly launch new developments for sale. Expectations for the markets in 2024 are positive due to factors such as lower inflation, funds flowing from the EU and a stabilised economy. A good trend is the clearly visible demand in the market. Unfortunately, supply is still low - there is a shortage of flats, especially in Warsaw, where purchase interest is highest.

Boaz Haim, CEO of Ronson Development:
In 2023, the demand for flats outstripped supply, to which the 2 per cent Secure Credit programme contributed significantly, providing a short-term but significant boost. In 2024, the housing market stabilised and the lack of the aforementioned government support only affected a specific segment of the market.

When planning for 2024, we anticipated that the Loan to Start programme may not be implemented in full, so its delay will not significantly affect our plans. Despite market conditions, we have consistently delivered on our strategic plan for the year. Our priorities are to maintain high margins, optimise our pricing and construction contracts and achieve a solid financial performance.

Mariola Żak, sales and marketing director at Aurec Home:
In a dynamically changing reality, we have fully adapted our strategy to the current conditions. In 2024, our priority is to maintain an undiminished margin, optimise prices and construction contracts and achieve a satisfactory financial result.

Compared to 2023, housing sales in the first half of 2024 were down by around 20 per cent. It is worth remembering that the previous year was characterised by a significant increase in demand in the property market, which was largely the result of the 2 per cent Secure Credit programme, which resulted in the finalisation of an above-average number of purchase and sale contracts.

Regardless of the current state of the market, we are not changing our plans for new projects. We are working intensively to maintain a high level of execution tailored to current customer expectations.

Zuzanna Należyta, Commercial Director at Eco Classic:
We have not noticed a significant drop in flat sales in the first half of this year. The market is stabilising, which makes the situation better and better, both for the industry and customers.

Damian Tomasik, CEO of Alter Investment:
In the first half of 2024, we recorded a significant increase in sales compared to the same period last year and the second half of 2023. We sold 4 lands and signed 10 preliminary agreements, which is the result of a well-thought-out investment strategy and an appropriate adjustment of the offer to the market needs. These impressive results are proof of the effectiveness of our actions and commitment to our long-term goals.

It is worth noting that the absence of the new borrower support programme did not have a significant impact on our sales performance. A key factor in our success was being properly prepared for the increase in demand for land and adapting our offering to changing market conditions.

We maintain our ambitious targets for 2024 and are confident that we will achieve them. We are focused on further developing our offering and delivering new and innovative projects that meet the expectations of discerning customers. We aim to maintain our high sales momentum and further strengthen our position in the property market.

In summary, the first half of 2024 was extremely successful for Alter Investment. Our sales results confirm that proper planning and a strategic approach to investments bring the expected results. We look to the next months with optimism and believe that the actions taken consistently will contribute to the further development of the company.

Source: dompress.pl
Photo: ROBYG RYTM, Mokotowa