Primarily operating in Wroclaw, the Lokum Developer Group, signed 7 preliminary and developer contracts in the third quarter of this year. During this time, 34 apartments were handed over to customers.
Lokum Developer, who offers apartments of a higher standard, covered 6 properties in Wroclaw and 1 in Krakow with preliminary and developers’ agreements in the third quarter of 2024. From January to the end of September, the Group contracted 124 properties (-78% y/y): 100 in Wroclaw and 24 in Krakow. The developer also had 30 reservation agreements as of the end of September.
In the third quarter of 2024, Lokum Developer handed over keys to 28 apartments in Wroclaw and 6 in Krakow. This was 75% less than in the same period the previous year. During the first nine months, 224 properties were released (-39% y/y), including 178 in Wroclaw investments and 46 in Krakow. The potential for recognition in 2024 was realized at the level of 60%, which consists of 274 properties that were recognized or covered by developer’s, preliminary, or reservation agreements.
“In the third quarter, we saw a further weakening of demand. Customers are suspending purchasing decisions, which is very visible in our results. Despite the fact that the situation for buyers in terms of market offer is comfortable today – the supply of apartments is growing and their choice is already large, transactions are not happening. Customers are waiting for the launch of the ‘Credit for Start’ program and lower interest rates. With the most expensive mortgage loans among EU countries, the cost of financing is the main barrier to purchasing a home in Poland. On the supply side, we also face many factors inhibiting housing development. Above all, we are faced with the highest production costs in history – due to land prices, wages, materials, and long-term financing. Due to lack of demand, launching new investments with apartments for sale is not justified today. Therefore, we assume that as long as the financial situation of customers does not improve, we will be forced to delay the start of investment. The dire situation of potential buyers naturally increases the need for availability of rental apartments. Therefore, the only new investment that we are launching today is a project with premises dedicated to this part of the market. We also assume that some of the apartments ready from currently implemented investments will also find such use” – says Bartosz Kuźniar, CEO of Lokum Developer.
The Group ended the third quarter of 2024 with 389 properties on offer, of which 171 were ready-to-receive apartments. 584 properties were under construction, which will be completed after 2024.
Lokum Developer has a rich land bank, which, apart from investments currently under construction, will allow the implementation of more than 11,000 properties.
Source: https://managerplus.pl/lokum-deweloper-prezentuje-dane-sprzedazowe-za-iii-kwartal-2024-r-11853
