Dom Development Reports 6% Higher Net Profit in H1 2025

In the first half of 2025, Dom Development Group sold 2,033 net units, 4% more than in the same period of 2024, strengthening its position as the leader of Poland’s residential real estate market.

During this period, the company handed over 1,595 units to retail clients, compared with 1,637 a year earlier, in line with construction schedules. Despite lower handover volumes and revenues, net profit rose 6% year-on-year to nearly PLN 246 million in the first six months of the year.

At the end of June, Dom Development had more than 5,400 units sold but not yet handed over, with a combined value of almost PLN 4.1 billion. The company estimates that handovers in the second half of the year alone will exceed 3,000 units.

Strong and Stable Sales Performance

“The second quarter of 2025 was the fourth consecutive quarter in which Dom Development maintained stable, high sales volumes of at least 1,000 net units, making us the only developer on the Polish market to achieve this. While the first half of the year was marked by challenges and mixed market dynamics, interest rate cuts in the second quarter improved mortgage affordability and triggered a cautious recovery in housing sales. As a result, the share of transactions financed by mortgages at Dom Development increased significantly, reaching 58% of total sales in the second quarter,” said Mikołaj Konopka, CEO of Dom Development.

The average transaction value, including finishing, storage units, and parking spaces, amounted to PLN 824,000 gross—slightly lower than last year’s PLN 840,000. This modest decline was mainly due to differences in project structure and unit sizes.

Market Conditions and Expansion Plans

Despite two interest rate cuts this year, mortgages in Poland remain among the most expensive in the EU, making future demand uncertain. Meanwhile, the number of apartments available on the market has reached record levels, extending sales cycles and stabilizing primary market prices.

“In these conditions, Dom Development continues to achieve strong sales performance relative to the market and plans further growth. We maintain our ambition to sell more apartments in 2025 than in our record year of 2024, when we sold 4,269 units. At the same time, we are adopting a more selective approach to launching new projects,” Konopka added.

In H1 2025, the company launched 19 projects with a total of 1,942 units across Warsaw, the Tri-City, Wrocław, and Kraków. At the end of June, the Group’s offer included 3,778 units available for sale, up 30% year-on-year.

The Group’s construction pipeline covered 8,270 units, while its land bank allows for the development of nearly 19,000 units—sufficient to maintain current sales levels for about five years.

Record Potential for Future Revenue

In H1 2025, the Group handed over 1,595 units, slightly below last year’s 1,637, mainly due to project schedules. Average revenue per unit fell to PLN 763,000 from PLN 777,000 last year, reflecting a larger share of deliveries in Wrocław and fewer in higher-priced Warsaw and Kraków.

As a result, recognized revenue for H1 2025 was PLN 1.29 billion compared to PLN 1.37 billion a year earlier. Despite lower revenues, net profit rose 6% to PLN 246 million, highlighting the company’s efficiency.

“Since developers’ financial results depend largely on unit handovers, we expect very strong results in the second half of the year. We plan to begin handovers of around 3,200 units during this period, most of them in Q4. Combined with stable construction costs, this should ensure solid revenues and profitability,” said Monika Dobosz, Vice President and CFO of Dom Development.

At the end of June, the company had a record pipeline of over 5,400 sold but undelivered units worth nearly PLN 4.1 billion. With a strong balance sheet and nearly PLN 1.6 billion in available financing (cash and unused credit lines), Dom Development is well positioned to seize new opportunities.

Selected Consolidated Financial Results (PLN m)

Source: ceo.com.pl