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Polish property developers report strong sales in 2023

REAL ESTATEPolish property developers report strong sales in 2023

Was there more apartment sales last year than in 2022? How did the fourth quarter of the previous year turn out? What decisions made in 2023 can companies proudly reveal? The survey was prepared by the property website

Angelika Kliś, Board Member Atal

The sales plan for 2023, due to the market situation reigning in 2022, had to be cautious by default. However, thanks to an improvement in the economy from the second quarter and our good preparation for increased demand, we significantly exceeded this plan.

Based on the dynamics of sales in recent months, we can conclude that we will close 2023 with a result of about 2700-2800 sold apartments. This would represent a year-on-year increase of about 30 percent.

Our previously mentioned proprietary reservation program, “Time for an apartment”, with which customers were guaranteed the price, plenty of time to handle formalities, and which did not involve any costs for them in case of withdrawal, had a significant impact on this great result.

Andrzej Oślizło, President of the Board Develia S.A.

We will be able to provide accurate results for the whole of 2023 in early 2024, but unfortunately, we can sum up this period as very successful. After a clear slowdown in 2022, when sales fell by half, buyers returned to the real estate market. Both cash customers and credit buyers were very active. In the case of credit customers, the relaxation of S recommendation provisions and the introduction of the 2% Safe Credit government program helped.

This revival is visible in our results. In the first nine months of 2023, we sold 2060 apartments compared to 1225 units in the corresponding period of 2022, which means an increase of 68 percent. In the third quarter of 2023 alone, we sold 876 apartments, or 236 percent more than in the third quarter of 2022. Thanks to the favorable economic situation, we updated our sales targets in September. By the end of 2023, we planned to reach sales and the number of transfers at the level of 2500-2600 apartments.

A key event for our company in 2023 was the takeover of Polish Nexity companies. Thanks to this acquisition, we significantly increased the supply potential in Warsaw and Krakow and entered the Poznan market, where we had not been present before. In this way, we consolidated our position among the leading Polish development companies.

Cezary Grabowski, Sales and Marketing Director Bouygues Immoblier Polska

In the past year, we exceeded our planned goals and sold 36 percent more apartments than in 2022. This result satisfies us greatly, as it confirms that we are designing and implementing investments in line with customer expectations. The most popular in our offer were new investments put up for sale in Bemowo – Lumea 2 estate, where customers bought 124 apartments, and Lumea 3 – where we sold 65 apartments. We also closed the sale of M Bemowo. Nova Talarova on Białołęka, which we introduced for sale at the beginning of 2023, was also successful. Currently, out of 142 apartments on offer, only 21 are left. Lune de Malta estate in Poznan also sparked great interest, where we sold over 115 residential premises this year.

In 2023, we handed over to residents the estate made of eco-friendly concrete in the Mokotów district of Warsaw – Aparté Mokotów and the Le Vert investment in Wrocław’s Pilczyce. We are currently carrying out 5 investments in the capital city – Lumea 2 Estate, Nova Talarowa, Novélia Bemowo, Linde Résidence II, and M Bemowo. Lumea 3 Estate and our newest project in the Włochy district – Rêve will join them soon.

This year we also decided to introduce the Appartme home automation system in our new investments. It increases the security of the apartment and also allows for energy saving. The first apartments to have Appartme as standard will be those in the Lumea 3 estate.

Małgorzata Ostrowska, Director of the Marketing and Sales Division at J.W. Construction

We will end the year with very positive statistics. I expect that we will close sales at a level about 50 percent higher than last year. It is worth noting that the last quarter of 2023 was a special period for our sales. In the face of the vision of the end of funds from the Safe Credit program, our sales offices were working at full speed. They were also stormed by investment customers, treating the purchase of an apartment as a way to optimize taxes at the end of the year.

Among the successes, it is worth mentioning the thriving investment project being implemented on the basis of frame technology and prefabricated buildings. We found a very promising and full of potential niche. We successfully introduced energy-efficient multi-family estates for sale. This is also a special year for us, as we are celebrating our 30th anniversary.

Boaz Haim, President Ronson Development

The sales results of our company, recorded in successive quarters of 2023, show that 2023 is a time of total rebound after a very difficult 2022 for the real estate industry. We received an impulse for development and boldly implement investment plans, and looking at our sales results, we hope for a record balance for the last 12 months in the history of our company.

In just three quarters of 2023, we sold 801 apartments, which is an increase of 169 percent compared to the corresponding period in 2022. This significant result, not only confirms our forecasts regarding the market rebound but also reinforces the effectiveness of the largest sales offer in the history of the company, introduced in mid-2022.

Anna Bieńko, Sales Director at Wawel Service

This year we will close with an impressive sales growth of 20 percent, which represents significant progress compared to last year. This is the result of our ability to effectively adapt to changing market conditions and continuous improvement of both development and sales strategies.

The fourth quarter of 2023 turned out to be one of the best in terms of the number of properties sold. This positive trend greatly influenced the final results of 2023 and our ambitious approach to this year’s goals.

Speaking of specific successes, we would like to emphasize the implementation of several prestigious projects like New Spring in Krakow and Czorsztyn Settlement, which received very positive reviews from our customers. In addition, we introduced many innovative solutions that gained market approval and contributed to enhancing the attractiveness of our offer.

Mariola Żak, Sales and Marketing Director at Aurec Home

We have had a satisfying year in terms of sales. The demand for apartments does not decrease, mainly due to the government’s 2% loan, which enables young people to purchase their first apartment. We see a lot of activity among cash customers, a large pool of apartments from the Jutrzenki Town investment was sold to individuals who wanted to invest their savings well. We also observe an increasing interest in the premises among foreigners. The most active buyers are Ukrainians and Germans, Belarusians, and the Dutch.

Apartment sales in 2023 exceeded our expectations and increased by 30 percent YoY compared to 2022. The industry appreciates the pro-ecological solutions we implement, which is confirmed not only by the high purchase of apartments but also by the prestigious Symbol of Modern Construction 2023 award, which we received for the second time in a row for our achievements in innovative architecture and sustainable construction development.

Damian Tomasik, President of the Board Alter Investment

The year 2023 was a demanding year in terms of the dynamics of changes. After a difficult year for the industry in 2022, sales of apartments slowly returned to the market from the beginning of 2023. As a land developer, we collected the effects of actions from 2022 in 2023. This resulted in our clients negotiating new terms of already concluded contracts, or in extreme cases, non-fulfillment of contracts. It was a demanding situation, but by overcoming these difficulties we came out of them stronger, better prepared for new challenges. We ended the past year with two land sale agreements and this is an identical result as in 2022. In 2023, we also concluded three preliminary land sale agreements with settlement in the first quarter of 2024. This is a result one third better than in 2022. 80 percent of these transactions were concluded in the fourth quarter of last year.

Waldemar Olbryk, President of the Board at Archicom

We can affirm with full confidence that 2023 was a successful year for Archicom. We regard the inclusion of Echo Investment’s residential business into Archicom, ordering the structure of our Group and, in the long run, is to lead to Archicom achieving a leading position in the housing market, as the most important success and milestone. We have thus become a nationwide developer with ambitions to achieve the status of a first choice development company in Poland.

Responding to real market demand, we launched the ongoing sale of successive and premiere stages of many development investments in Wrocław – Awipolis, Gardens above the Green, Meridian 17, Planty Racławickie, in Łódź – Zenith, and in Warsaw – Modern Mokotów.

We successfully implemented our financial strategy, we finalized the issue of D and E series shares for PLN 220 million, the issue of bonds worth PLN 210 million, and also signed an annex to the overdraft facility agreement, which increased available funds to PLN 160 million. Thanks to this, we consistently built our land bank, purchasing land in Wrocław, Warsaw, and Łódź.

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