Develia expands land holdings for over 3,200 new flats in H1 2024

Develia has significantly bolstered its land bank in the first half of 2024, acquiring more than 172,000 square meters of floor space. This strategic move supports the construction of over 3,200 new residential units across key Polish cities, including Warsaw, the Tri-City, and Wrocław.

In H1 2024, Develia purchased five sites, enhancing its development portfolio with a 50.01 percent stake in a joint venture alongside entities controlled by TFI Rockbridge. These acquisitions represent a substantial investment, exceeding PLN 300 million net.

Mariusz Poławski, Vice President of Develia, emphasized the significance of these transactions: “The recent land acquisitions are a crucial step in our 2024-2028 strategy. The development of over 3,000 new units will significantly strengthen our presence in Warsaw, the Tri-City, and Wrocław, key markets for us. Our current land bank, including the joint venture, allows for the construction of over 10,000 flats, providing us with flexibility and comfort in launching new projects in the coming quarters.”

The largest development will take place on Morska Street in Gdynia, where over 1,600 flats will be built under a joint venture agreement secured in March 2024. Additionally, Develia acquired land on Żywiecka Street in Gdańsk in June 2024, planning for 128 new units. Combined, these projects will contribute over 1,700 new flats to the Tri-City market.

In Wrocław, Develia will construct more than 1,000 units on a 43,000 square meter site purchased on Międzyleska Street in January 2024. The developer also completed two land acquisitions on Sochaczewska Street in Warsaw during March and May 2024, aimed at building over 460 new flats on a 46,000 square meter area.

In the first half of 2024, Develia launched 14 new construction sites, comprising more than 2,500 units. The company aims to increase the number of flats introduced by over 20 percent compared to the previous year, with plans to start construction on 3,500-3,700 flats throughout 2024. Currently, nearly 6,400 units are under construction across 43 developments.

Mariusz Poławski highlighted the company’s strategic initiatives: “Despite rising material and labor costs, we are receiving attractive offers in tenders conducted in the general contracting model. Additionally, leveraging our acquisition of Polish company Nexity, we established Develia Construction, which now handles 20 percent of our construction projects. Having our own general contractor offers clear advantages in terms of better control over environmental and quality issues, and it provides an economic advantage by retaining the margin of external contractors within the group.”

Develia’s aggressive expansion and strategic investments underscore its commitment to meeting the growing demand for residential spaces in Poland’s urban centers, promising substantial benefits for both shareholders and future residents.