Poland: How many apartments did developers sell in 2022

by   CIJ News iDesk III
2023-01-31   16:50
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What results did real estate developers achieve in 2022?
How did sales develop compared to 2021?
How many apartments do developers currently have on offer?
Is the choice smaller than a year ago?

Angelika Kliś, Atal board member:
The Atal Group concluded 2091 development and preliminary contracts in 2022. Due to unfavorable political and macroeconomic developments for the entire industry, 2022 turned out to be worse than expected. Although we recorded a y/y sales result lower by about half, it should be noted that we relate it to 2021, which was a record year throughout our and the market's history.

According to aggregate data as of 12/01/2023, Atal S.A. Group will recognize a total of 3380 residential and commercial units net handed over to buyers in the 2022 revenue period. We currently have about 4,500 apartments on offer in Poland's 7 largest markets.

Boaz Haim, president of Ronson Development:
Last year, we sold 442 and handed over 746 units, compared to 877 units sold in 2021 and 1007 handed over. Our offer defended itself thanks to its diversity, even though the downward trend was evident across the industry. In 2022, we introduced quite a number of new projects - 11 luxury villas in Nova Królikarnia, Grunwald Między Drzewami in Poznań, which generated a great result at the pre-sales stage, Vola Estate in Warsaw, which is yielding stable sales thanks to its premium standard. In addition, the Nowa Północ investment in Szczecin, where we will build 550 apartments in 6 stages, and EKO Falenty near Warsaw, where we are building compact single-family homes. We have sold the most units in our flagship Warsaw projects Ursus Centralny and Miasto Moje. These are self-sufficient estates, surrounded by transportation, medical and commercial infrastructure, ecological and innovative solutions. And also well located in relation to the city center.

We have prepared a very interesting and diverse offer for 2023. We will be launching further phases of existing popular segment projects, such as Ursus Centralny, Miasto Moje, Nowe Warzymice, and Viva Jagodno, but also launching brand new ones, such as Zielono Mi in Warsaw's Mokotow district. We also have plans to introduce more stages of Nova Królikarnia in 2023. As of today, we have 1,094 apartments and houses to offer.

Damian Kapitan, president of Spravia
Spravia concluded 966 preliminary contracts for the sale of residential units in 2022, compared to 1524 contracts concluded in 2021. In the fourth quarter of 2022, 310 contracts were signed, compared to 362 contracts in the fourth quarter of the previous year.

On the other hand, the number of notarized contracts for the transfer of ownership of a residential unit in the whole of 2022 amounted to 1585, compared to 1890 contracts concluded in 2021 (Q4 2021 - 338; Q4 2021 - 555).

All in all, we are satisfied with the results achieved, as we met 75% of the budget in 2022. The budget provided for pre-sales of 1,279 apartments and was based on the number of projects we had prepared and earmarked for introduction. At the same time, one of the biggest challenges last year was the situation in the mortgage market. By comparison, lending on the purchase of apartments from our offer in 2021 was at about 50 percent, while in 2022 it dropped to about 30 percent.

Michal Witkowski, sales director of Lokum Deweloper S.A.:
The year 2022 was difficult not only for the development industry, but especially for those interested in buying apartments. High inflation, successive increases in interest rates, and the FSA's updated creditworthiness examination recommendation last March made real estate purchases virtually only available to people with very high incomes or cash.

As late as 2021, the proportion of our customers making transactions with cash was about 30 percent, with the remaining 70 percent being buyers who mostly realized their own housing needs financed with mortgages. In 2022, on the other hand, the proportions reversed dramatically. Those supporting the purchase with a mortgage are only less than 20 percent of our customers, while more than 80 percent of sales transactions are for cash. This situation has led to an overall decline in apartment sales.

Last year, we concluded 435 preliminary and development agreements, down 42 percent from 2021. We contracted the largest number of apartments from the relatively latest launched stages of Wroclaw's Lokum Porto and Lokum Verde estates, as well as from the third stage of Kraków's Lokum Vista project.
We do not plan to significantly expand our apartment portfolio in the current year. As of the end of 2022, we had almost 800 units for sale. We have a wide assortment of apartments with varied layouts and square meters. The estates in our portfolio are located in the best locations in Wroclaw and Krakow. I am convinced that an offer structured in this way is attractive to potential customers and adapted to the current demand and buyers' purchasing capacity. Of course, we are constantly monitoring the market to be able to respond to our customers' expectations on an ongoing basis. We are counting on the fact that with the drop in inflation and interest rates, as well as the announced correction of the FSA's recommendations, customers' purchasing capacity will improve and they will be able to obtain a mortgage that will allow them to buy their dream home. The revived demand will allow us to launch new investments.

Sebastian Barandziak, CEO of Dekpol Developer:
The number of apartments sold in 2022 based on the concluded reservation, development and preliminary contracts was 341, compared to 490 contracted in 2021. On the other hand, the number of units that will be recognized in the Group's financial result is 380 against 406 units in 2021.

The selection of units in our offer compared to last year was at a similar level. We are supplementing our offer on an ongoing basis and do not intend to slow down. We currently have 680 units on sale, some of which are ready for delivery. The units are offered as part of investments such as Osiedle Kociewskie, Trimare, Osiedle Pastelowe, Neo Jasień, Baltic Porto, Baltic Line, Lazur Park, Villa Neptun, Sol Marina and Grano Marina Hotel.

Anna Bieńko, Sales Director at Wawel Service:
The real estate market in 2022 was not easy for development companies. The situation was peculiar - high inflation, the war across our eastern border, expensive loans and very high uncertainty. The result was a decline in sales of new apartments compared to 2021.

As for 2023, the selection of new apartments and houses on offer in 2023 will be larger. We currently have six developments on offer in Krakow, including two with apartments ready for occupancy: Piasta Park and Zielone Mogilany, two developments in Katowice, which will also soon be ready for pick-up. Customers are also offered investments in the mountains: Osada Czorsztyn on the Czorsztyn Reservoir and Novi Mocarni in Koscielisko, our residential premiere this year. We are also planning to launch another residential project in Silesia.

Damian Tomasik, founder of Alter Investment:
The company is a land developer and in 2022 sold land on which more than 1,600 residential units could be built. It was a record year for Alter Investment in terms of sales. The process of preparing land to begin construction often takes several years. Obtaining agreements and building permits is getting longer and longer, and on the other hand - as we can see from our example - very well-prepared properties meet with great interest from developers.

Zuzanna Należyta, commercial director at Eco Classic:
In 2022, due to a significant increase in the cost of credit and additional restrictions introduced by the FSA on the way creditworthiness is calculated, we stopped the start of sales of 3 planned investments. Sales dropped significantly due to the lack of credit customers, but also due to the reduction of the offer.

Małgorzata Ostrowska, director of the Marketing and Sales Division at J.W. Construction Holding S.A.:
Due to the collapse of the mortgage market, 2022 was a difficult year for the industry. However, we have a very attractive product for investors, we build apartments in very good locations, so the result is satisfactory. In all investments, the choice is smaller than a year ago, because the offerings are decreasing every month. Above all, the last pieces of studios and small apartments remain. We expect a revival of sales in the second half of this year. The demand impetus will undoubtedly be the government program of support for the purchase of the first apartment.

Marek Pawlukiewicz, spokesman for Aria Development
In 2022 we sold slightly fewer apartments than the year before. The record year of 2021 will be difficult to repeat in the coming years. At that time, the macroeconomic environment was favorable and credit was definitely more available with low interest rates. We are currently running a project - the new Osiedle Natura 2 in Wieliszew, which we are implementing in three stages. From the 1st and 2nd stages, there are few units left that are ready and available "off the shelf." In the third stage we have a large selection of apartments, both 30-meter, compact and large.

The poll was prepared by the real estate website dompress.pl
Photo: Stacja Centrum_JW Construction