In the past year, Archicom has doubled its revenue compared to 2022. The engine for the developer’s expansion has been the successful integration of the housing business within the Echo-Archicom Group, which has led among others to a rapid expansion into Poland’s largest agglomerations. This year, the company plans to continue its dynamic growth by launching 28 new residential projects and expanding its land bank, particularly in locations with the highest supply-demand gap.
In 2023, Archicom generated revenues of PLN 1,101.1 million, doubling its value from 2020, where it had reached PLN 499.7 million. The key to operational efficiency was the consistent expansion of the land bank. Thanks to this, the nationwide developer has launched its next flagship urban projects, meeting market demand. By the end of 2023, Archicom had over 4,000 apartments under construction, 58% of which were sold, as well as land enabling the construction of nearly 10,000 new apartments. The company’s thoughtful strategy, streamlined processes, and current organizational resources translate into financial security and stability, even with such a large increase in scope.
Milestone in the organization’s development
The key moment for our brand in 2023 was without a doubt the successful integration of the housing business within the Echo-Archicom Group. We are a nationwide developer with significantly larger capabilities and ambitions than a year ago. Beyond the Wroclaw market, where we remain the leader, we are also present in Warsaw, Krakow, Poznan, and Lodz. Our presence in the largest Polish agglomerations is evidenced not only by the purchase of new land, but also by the launch of new investments. We believe that activity in this area is essential to reaching our goal of selling 4,000 apartments by 2025. – says Waldemar Olbryk, President of the Board at Archicom.
By implementing flagship urban projects, Archicom sold 1856 apartments in the past year. The developer concentrated on locations with the largest supply-demand gap. The most popular investments included: Modern Mokotow in Warsaw, Poludnik 17, Sady nad Zielona, Planty Racławickie and Awipolis in Wroclaw, as well as Zenit and Fuzja in Lodz.
Effectiveness of financial policy
In 2023, Archicom’s net profit amounted to PLN 245.2 million, representing a year-on-year increase of 122%. The generation of financial surpluses has proven key to building organizational stability with such a significant increase in operational scale, as well as allowing for rational investment decisions.
Summarizing 2023, the consistency in implementing the financial policy by Archicom should be highlighted. The company achieved excellent operational results, recording successes in diversifying sources of investment financing. We successfully carried out a share issue for the amount of PLN 220 million, as well as bond issues totaling PLN 272 million. The funds raised are primarily allocated to the construction of an attractive land bank. In 2023 alone, we purchased land for the amount of PLN 327 million. These will enable us to build nearly 3,250 apartments, which will significantly boost the organization’s development. Our strategy involves selling 80% of the apartments before the completion of a given investment, and the remaining 20% up to 6 months later, which allows us to achieve the optimal property price. At the same time, we are constantly striving to optimize construction costs, including through contracting in construction packages, says Agata Skowrońska-Domańska, Vice President of the Board at Archicom.
In 2024, Archicom will launch 28 new projects or subsequent stages of residential investments. Even before the end of the first quarter of this year, the developer has introduced nearly 1900 apartments on the market in 10 projects, including new flagship urban investments such as Flow in Lodz, Wita in Krakow or Przystan Reymonta in Wroclaw, the next stages of Wieza Jeżyce estate in Poznan, Stacja Wola in Warsaw, and a new intimate project Dabrowskiego in Krakow.
