In the first half of 2024, Dom Development Group strengthened its leading position in the Polish housing market, selling 1,954 net apartments, which is 6% more than in the corresponding period of 2023.
In the same period, the Group handed over 1,637 apartments to buyers compared to 1,998 a year earlier. Despite the lower volume of handovers, revenues from sales for the first half of this year were 7% higher year-on-year and amounted to PLN 1.37 billion. The net profit generated in the first six months of 2024 increased by 4% year-on-year to over PLN 231 million. In the second quarter alone, the Group’s revenues reached PLN 664 million, and net profit almost PLN 94 million, which in both cases means an increase of 47% year-on-year.
The Board expects record volume of apartment handovers in 2024, which will have a positive reflection in the Group’s results for this period.
Jarosław Szanajca, President of the Management Board of Dom Development, commented, “Following a very strong 2023 in terms of sales and the first quarter of 2024, the second quarter brought a cooling down of demand, coupled with a further gradual recovery of apartment supply in the primary market in the largest agglomerations. The result is a significant slowdown in apartment price growth, observed in previous periods, and a decrease in apartment sales volume at many of our competitors. In these market conditions, Dom Development Group achieves very satisfactory results, strengthening its leading market position.”
The average transaction value in the Dom Development Group, including the price of the apartment along with any finish, tenant’s cell and parking space, in the first half of the current year amounted to PLN 840,000 gross and was 17% higher year-on-year.
“In the first half of 2024, we maintained high profitability indicators at every level of the income statement. We are also very pleased with the high satisfaction of our customers, expressed by the net promoter score (NPS). In the second quarter of this year, the NPS for the Dom Development Group was 70 points, which is an excellent result, considering that its value can vary from -100 to 100 points,” emphasized Leszek Stankiewicz, Vice President of the Management Board and CFO of Dom Development.
During the first half of 2024, Dom Development Group began the implementation of 25 projects, totaling 2,963 apartments in all four agglomerations where it operates, i.e. in Warsaw, Tri-City, Wrocław and Krakow. As of the end of June, the Group’s offer included 2,915 apartments available for sale, i.e. 13% more than a year ago and 21% more than at the end of 2023.
The scale of the investments implemented at the end of June this year included a record number of 8,371 apartments under construction, which means an increase of 24% year-on-year. The Group also had a land bank with the potential to build over 18.7 thousand apartments. Most of them were in Warsaw (over 10.6 thousand apartments) and Tri-City (over 4.7 thousand apartments). The largest increase in the land bank’s potential was recorded in Wrocław (over 2 thousand apartments) thanks to the purchase of attractive land in the second quarter of this year.
In the first half of this year, Dom Development Group recognized revenues of PLN 1.37 billion and generated over PLN 231 million net profit. These results are respectively 7% and 4% higher than in the corresponding period of 2023, despite the smaller number of apartments handed over to buyers in the discussed period.
Anticipating that the financial results presented by developers depend mainly on the number of apartments handed over to buyers in a given period, we expect very good results also in the second half of this year. Considering that the potential for handovers in 2024 is higher than in the record 2023, when our customers received keys to 3,831 apartments. All our constructions are being carried out on time. From the schedules of investments being carried out, it follows that a very large number of handovers will fall in the fourth quarter,” pointed out Leszek Stankiewicz.
As of the end of June, the Dom Development Group had a total of over 4.9 thousand sold apartments (with a total sales value of over PLN 3.5 billion) that had not yet been handed over to buyers, of which 260 are already ready, and the construction of approximately 3,000 more is to be completed this year.
“Our ambition is to strengthen our leadership position in the Polish housing market not only in terms of scale of operations, but also efficiency. Thanks to cost discipline, our own general contractors and the hard work of the entire team, we have maintained high profitability rates at every level of the income statement in the first half of 2024.”
The important event of the past half-year in the Dom Development Group was also the establishment of the Our House Foundation, which will gather in one place the Group’s initiatives in the field of responsible business. The Foundation’s goals include supporting local communities, educational institutions, sports ventures, cooperation with cultural institutions and charitable organizations, and helping the Ukrainian community.
“Our company has been carrying out social and charitable activities for years, which are carried out by individual Group companies. This is also an element of our ESG DOM 2030 strategy. The establishment of the Our House Foundation will allow them to be integrated into one place, and thus facilitate the management of our initiatives in the field of responsible business. Just in 2023, our Group allocated over PLN 8 million for charitable activities,” says Leszek Stankiewicz, president of the Our House Foundation.
The grand inauguration of the activities of the Our House Foundation was the signing in August of a cooperation agreement with the Ukrainian Housing for IDPs Foundation. In 2024, Our House Foundation will transfer PLN 3.2 million to them to implement a housing project near Vinnytsia for internal refugees in Ukraine.
The investment will include the construction of 14 apartments and an air-raid shelter. Last year, Dom Development carried out a renovation of a ruined building in Irpin together with the Housing for IDPs Foundation. 19 families who lost their homes as a result of the war settled in the renovated facility.
Source: https://ceo.com.pl/dom-development-zwieksza-sprzedaz-mieszkan-o-6-w-pierwszym-polroczu-2024-r-78848
