Poland: Are housing developers changing their investment plans

Is the lack of support for home buyers with preferential credit causing companies to change their sales assumptions for this year and their investment plans? What projects have entered the market in 2024? What investments are planned to be built?

Tomasz Kaleta, managing director of sales and marketing at Develia:
Our sales target of 2,900 to 3,100 flats in 2024 remains valid. Develia is one of the few developers who have not reduced their sales plans this year. We also maintain our target related to new investments. This year, we plan to introduce and start construction of 3,500 to 3,700 flats.

Zbigniew Juroszek, CEO of Atal:
We are acting in accordance with the adopted plan. Our goal is to have an offer that will meet the needs of customers from different segments of the primary market, in any period of market prosperity. In the event of an increase in the demand side, we will be ready with our expanded portfolio thanks to our consistent construction and sales launch schedules.

This year, we have launched almost 20 new projects or their subsequent phases, and we will launch several more in the fourth quarter of this year. We have recently launched sales of the second stage of the Atal Apollina project in Gdańsk's Kowale and the new Akacjowa Wita project in Kraków.

In the Tricity, we also intend to start selling further stages of the investments already underway. We have similar plans, including completely new projects, in the Silesian agglomeration, Krakow, Wroclaw and Poznan.

Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at Robyg Group:
The results of the first half of the year confirm that our targets set for the whole of 2024 are as realistic as possible. Regardless of government programmes, the demand for flats in Poland will continue for the next few years. We have about 3,900 flats under construction, and we are also planning new projects and phases for about 5,000 flats.

We are steadily expanding our land bank; in June we invested in extensive land in Warsaw and Gdansk. Currently, our land bank is one of the largest among developers operating on the Polish market and includes the potential to build more than 25,000 units. We are introducing new investments for sale and want to increase our market share, strengthening our position as one of the leaders among residential developers in Poland.

Andrzej Gutowski, Sales Director of Ronson Development:
Adjustment of sales plans depends on many factors. In the middle of the year we made changes based on the market situation, which was already shaping up at the end of March and the beginning of April this year.
In 2024, we introduced flats in the Zielono Mi development in Warsaw (92 flats), as well as in our key investments: Miasto Moje (2 buildings, 152 flats) and Ursus Centralny (2 buildings, 191 units).

In Szczecin, we started selling the fifth stage of the Nowe Warzymice estate (39 flats) and the Nowa Północ project (89 flats). In Poznań, meanwhile, we introduced units in the Grunwald Między Drzewami II development. Later this year, we plan to add to the sales offer with the second stage of the Zielono Mi development, which will include 106 flats.

Shraga Weisman, CEO of Aurec Home:
Changes in the property market do not affect our plans. With our own financial resources and land bank, we are implementing our projects in line with our strategy for the coming years. We are currently finalising the next stage of construction in the eco-friendly development of Tomorrowland Town - the Lavender Quarter. In March this year, we also started selling flats in the Fabrica Ursus development in Warsaw, which is characterised by its industrial style, with historical elements of the former Ursus factory integrated into the architecture. We plan to launch the second phase, in which we will put 250 flats on sale, in autumn 2024.

Zuzanna Należyta, commercial director at Eco Classic:
Sales in our investments are lower than at the end of 2023 and the beginning of this year, but stable enough to allow us to continue with our investment assumptions. We were supposed to launch two investments this year, but these dates have changed due to prolonged administrative procedures.

Marcin Michalec, CEO of Okam Capital:
For this year we have assumed the construction of units in the medium plus and premium segments in three cities, Warsaw, Łódź and Katowice. Soon, at the end of 2024, we will complete the construction of the first stage of Cityflow (over 330 flats) in Warsaw's Wola and the first stage of Łódź's Strefa Progress (nearly 260 units), and we are also conducting their subsequent stages.

Construction work around the Now project (over 300 flats) in Łódź is proceeding according to schedule, as is the construction of the fourth and fifth stages of Inspire (about 190 residential units) in Katowice and the Warzelnia by Bohema lofts (67 units) in Warsaw.

In turn, we recently received the occupancy permit for stages D, E and F of Bohema - Strefa Praga, which we were developing as part of a multi-stage complex in Warsaw. We are actively expanding our land bank. This year we purchased land in the Warsaw agglomeration and a plot in Łódź. We are also planning to expand our operations in Katowice.

Dawid Wrona, Chief Operating Officer at Archicom:
Regardless of market circumstances, we are aiming to achieve our medium-term goal of selling 4,000 flats as early as 2025. The intermediate target for 2024 is to achieve sales of 2,600 units. In recent months, we have focused on expanding our land bank, particularly with advanced permissions. Since the beginning of the year, we have secured plots of land enabling the construction of 4,000 flats in major Polish cities. In the first half of 2024, we launched around 2,500 units in 12 projects, including in Kraków, Warsaw and Wrocław.

We also started the construction of several new projects, among which it is worth mentioning Wita in Kraków, Apartamenty M7 in Warsaw and Powstańców 7D in Wrocław. In the coming months, we will continue with the adopted strategy. The company's stable financial situation enables us to continue our dynamic development.

Damian Tomasik, CEO of Alter Investment:
The lack of support for buyers with preferential credit has not fundamentally changed our investment assumptions and sales plans. As a land developer, we implement projects for various purposes, not only strictly residential, and moreover, the process of preparing land for construction, which we specialise in, usually takes several years. We do not operate under the influence of short-term fluctuations in the housing market. We consistently pursue our investment strategy based on diversifying our product portfolio and taking into account long-term trends, including in the context of observing the evolution and direction of mature markets in Western Europe.

This year we have started several important projects. One example is the investment at Madalińskiego Street in Gdańsk, where we are developing sites for multi-family housing and PRS in collective housing. Although we are only at the initial stage of its implementation, we are already seeing a lot of interest from potential investors, for whom the temporary lack of preferential mortgages for individual customers is of no significance. We are also continuing our work in the Warmia and Mazury region, where we have designed investments of a diverse nature, including for the construction of a leisure and residential complex. In the near future, we also plan to launch investments in the attractive location of the eastern Sudetenland. Properties with an ideal location for hotel development.

Source: dompress.pl
Photo: Chmielna, BPI