The past year has tested all participants in the residential real estate market. High interest rates, declining creditworthiness of Poles, and the lack of a government support program created a mix of challenges that required developers to be flexible and adapt their strategies to a rapidly changing reality. Simultaneously, 2024 saw a rise in interest in premium investments and sustainable construction. Has the development industry found a recipe for stability in turbulent times? The portal RynekPierwotny.pl asked representatives of development companies about the key events and changes that had the greatest impact on the past months.
Andrzej Gutowski, Sales Director at RONSON Development
The year 2024 was a period full of challenges for the residential real estate market, requiring thoughtful and careful decision-making. At RONSON Development, we consistently pursued a strategy aimed at maintaining project efficiency and profitability. Thanks to this, despite the difficult market situation, we were able to achieve stable financial results and retain flexibility in adapting to dynamic changes.
Overall, the industry experienced lower sales compared to previous years. Early in the year, a temporary wave of optimism came from the announcement of a government subsidy program. However, in the following months, market realities tempered customer sentiment. Demand remained low, and the pace of sales weakened in the second half of the year.
Certain trends emerged in purchasing patterns. About 40% of clients opted for cash purchases due to caution in taking out mortgages and the influx of clients with higher financial means, including Ukrainians and Belarusians, who made up around 15-20% of our buyers. Additionally, more clients purchased homes for personal use rather than for rental investments.
The final months of the year brought a brief resurgence in sales due to promotional efforts and developers’ need to meet sales targets. Clients, seeing attractive offers, were more willing to make purchasing decisions, which led to a slight increase in market activity.
Anna Skotnicka-Ryś, Board Member and Sales Director at PROFBUD
We view 2024 as a year full of inspiration for the residential real estate market. At PROFBUD, it was a time of key initiatives, such as sponsoring the Polish Olympic Team and donating apartments to gold and silver medalists from Paris. This coincided with the launch of the “City of Polish Olympic Champions” investment near Warsaw, which garnered significant interest and recognition from both clients and industry experts.
Despite challenges that contributed to slower sales compared to the previous year, understanding market dynamics was crucial. Although interest rates stabilized, mortgage costs remained high, and the required down payment limited many Poles’ creditworthiness. Furthermore, the “Safe 2% Credit” program quickly exhausted its benefits, and uncertainty around new government programs discouraged decision-making.
However, the premium segment remained resilient. Wealthy clients are less sensitive to economic shifts, and luxury real estate remains a safe investment. Looking forward to 2025, we plan ambitious premium projects to expand our portfolio and strengthen our market position.
Tomasz Kaleta, Sales and Marketing Director at Develia
The numerous challenges and uncertainties in 2024 demanded great flexibility from developers. According to JLL data, sales fell by 35% compared to the same period last year. High interest rates and uncertainty around government support programs dampened buyer interest. Additionally, limited availability of new properties early in the year led to price increases, especially in Q1. Prices have since stabilized, and the market has returned to pre-pandemic levels.
Despite the challenging market, Develia surpassed last year’s sales record by October, meeting our 2024 target. This success was due to an attractive offering that met diverse buyer needs. The trend towards sustainable and responsible construction gained momentum in 2024. Our Warsaw project, Lizbońska, developed with Grupo Lar Polska, adhered to these standards and is undergoing BREEAM certification. We also implemented the “15-minute city” concept in projects like City Vibe and Centralna Vita in Krakow.
Mariusz Gajżewski, Head of Sales, Marketing, and Communication at BPI Real Estate Poland
2024 was a dynamic year for us. We completed three projects: Bernadovo in Gdynia, Panoramiqa in Poznań, and Czysta4 in Wrocław, with sales ongoing. We are building Chmielna Duo in Warsaw and Cavallia in Poznań, the latter in collaboration with Revive Poland. Our latest project, PianoForte in Warsaw, is also set for launch.
Sustainability has become increasingly important to our clients, who now emphasize eco-friendly and energy-efficient buildings. Market-wide, high interest rates impacted mortgage availability, and expectations around the “Housing Start” program delayed purchasing decisions. Despite these challenges, we remain optimistic about future stabilization and growth in 2025 and beyond.
Tomasz Łapiński, CEO and Managing Director of Residential Investments at Cordia Polska
2024 was less dynamic than the previous year, which saw the “Safe 2% Credit” program supporting first-time buyers under 45. The unfulfilled “Housing Start” program created uncertainty, causing many buyers to delay decisions.
Cordia Polska maintained stable growth, delivering projects like Leśna Sonata in Sopot and Modena by Cordia in Poznań. We began premium projects like Haffnera Residence in Sopot and Hi Mokotów in Warsaw. In 2025, we plan new investments in the Tri-City, Warsaw, and Poznań.
We advocate for a long-term housing policy to stabilize credit regulations and housing supply. Despite challenges, real estate remains a safe investment for Poles.
Mirosław Bednarek, Regional Business Director, CEO of Matexi Polska
2024 brought stability after recent market fluctuations. In Warsaw and Krakow, demand and supply balanced, leading to price growth in line with inflation. Matexi Polska launched five projects, delivering 587 apartments. Despite high inflation and limited government support, we signed contracts worth nearly PLN 400 million, only 10% less than last year.
We invested PLN 200 million in land acquisitions, preparing for future growth with over 3,000 planned apartments.
Zbigniew Gościcki, CEO of Unidevelopment SA
2024 highlighted the challenges of residential development, including prolonged administrative processes and limited land availability. Demand fluctuated due to the “2% Credit” program and uncertainty over new government support.
The market’s potential remains strong. Simplified administrative procedures and land-use reforms are needed. Despite challenges, more clients are ready to buy, anticipating lower interest rates and new housing policies.
Renata McCabe-Kudła, Country Manager, Grupo Lar Polska
2024 was a good year for Warsaw’s housing market. We completed Lizbońska in Saska Kępa and Ursynów#22 near SGGW. Sales were steady, and mortgage market disruptions had minimal impact.
We anticipate strong demand for well-located, well-designed projects in 2025, especially with expected interest rate cuts improving credit availability.
Zbigniew Juroszek, CEO of ATAL
High mortgage rates in 2024 affected demand, especially for mid-range housing. Despite challenges, developers achieved better-than-expected sales. ATAL launched around 20 new projects and expanded our land bank, securing financing for continued growth.
We opened our eighth branch in Szczecin, preparing for future expansion and strengthening our internal capabilities.
Author: RynekPierwotny.pl
Source: ManagerPlus.pl
