In the first quarter of 2025, Polish real estate developer Develia reported sales revenue of PLN 253.5 million, a 37% decrease compared to PLN 401.6 million in the same period of 2024. The decline was mainly attributed to a lower number of apartment handovers, particularly from wholly owned projects.
The net profit of the group amounted to PLN 65.2 million, down 23% year-on-year from PLN 84.4 million. The gross profit from development operations reached PLN 79.2 million, with segment revenues totaling PLN 251.9 million.
Residential Development Activity
Between January and March 2025, Develia sold 951 residential units, compared to 1,038 units in the same period of 2024. The most successful projects in terms of sales included Aleje Praskie and Bemowo Vita in Warsaw, Traugutta Vita and Orawska Vita in Wrocław, Przemyska Vita and Południe Vita in Gdańsk, Centralna Vita and City Vibe in Kraków, and Królowej Jadwigi in Poznań.
During the same period, 524 units were handed over (including 156 under joint ventures with Grupo Lar Polska), down from 598 units last year. The company’s 2025 target is to hand over 2,900–3,100 units, with a handover peak expected in Q4.
“We recorded solid sales in Q1 and a significant improvement over Q3 and Q4 of the previous record-breaking year. It confirms our strong market position and provides a good base for achieving our annual targets. The recent interest rate cut in May is a positive market signal and significantly improves mortgage affordability, which we expect will support housing demand,” said Andrzej Oślizło, CEO of Develia.
Acquisition of Bouygues Immobilier Polska
In late April, Develia signed a preliminary agreement to acquire 100% of shares in Bouygues Immobilier Polska for EUR 66.5 million (approx. PLN 283.6 million). The deal will expand Develia’s development pipeline and land bank in Warsaw, Poznań, and Wrocław.
At the end of 2024, Bouygues Immobilier Polska had approx. 1,300 units under construction or preparation (with 1,098 already under development agreements), and around 2,800 units secured through preliminary land contracts. The acquisition will be financed with internal funds, with an option to refinance through a bank loan. The transaction is expected to close by June 30, 2025, pending antitrust clearance from Poland’s competition authority (UOKiK).
Commercial and PRS Activities
In Q1, Develia continued efforts to finalize the sale of Arkady Wrocławskie, with completion targeted by the end of August. The company has already obtained the necessary demolition permits.
As part of its diversification strategy, Develia is also building competencies in the PRS (Private Rented Sector) and PBSA (Purpose-Built Student Accommodation) markets. In January 2025, the company acquired a plot in Wrocław’s pl. Orląt Lwowskich for PLN 40.6 million, where it plans to develop a student housing complex with 600 rooms and two commercial units. Construction is scheduled to start in 2026, with completion planned for 2028.
Financial Performance Overview
| Metric (PLN ‘000) | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Revenue | 253,530 | 401,612 | -36.9% |
| Gross profit from sales | 80,814 | 133,496 | -39.5% |
| EBITDA | 47,515 | 109,942 | -56.8% |
| Adjusted EBITDA | 49,589 | 112,699 | -56.0% |
| Net profit | 65,176 | 84,400 | -22.8% |
| Adjusted net profit | 67,160 | 87,788 | -23.5% |
| ROE | 3.65% | 5.16% | -1.51 pp |
| Adjusted ROE | 3.80% | 5.4% | -1.60 pp |
Develia’s results reflect a higher proportion of apartment handovers from joint ventures, which are reported under the equity method and not included in sales revenue, gross profit, or EBITDA. In Q1 2025, the company reported PLN 13.3 million in profits from JV operations, compared to a PLN 0.7 million loss a year earlier.
“Our Q1 results reflect a lower volume of handovers and a handover structure dominated by JV units. We anticipate a significant increase in deliveries by year-end, aligned with our project schedules. The cash position at the end of March confirms our strong liquidity and readiness to finance the Bouygues acquisition from internal resources. We may consider refinancing later via bank debt,” said Paweł Ruszczak, Vice President of Develia. “In line with our shareholder return policy, we’ve recommended a record dividend payout of PLN 265.5 million (PLN 0.58 per share) for 2024.”
In February 2025, Develia issued PLN 160 million in bonds with a four-year maturity and a variable interest rate based on 3M WIBOR + 2.4% margin.
As of March 31, 2025, Develia held PLN 682.5 million in cash and short-term financial assets, down from PLN 840.6 million at the end of 2024. Financial liabilities totaled PLN 893.2 million, compared to PLN 915 million at the end of 2024.
Source: ceo.com.pl
