How many flats have developers sold in the second quarter of this year? How do this year’s results compare to last year’s? What’s the demand? How do companies assess sales opportunities in the coming months? The survey was developed by the real estate website dompress.pl.
Andrzej Oślizło, President of the Management Board of Develia S.A.
In the context of the market situation, the sales result achieved in the second quarter of this year. we consider it satisfactory. In the entire first half of 2022, we contracted 966 apartments, which means on a year-to-year basis. less decline than 10 percent Like other developers, our company faces many challenges. First of all, with a further increase in interest rates and a reduction in customer creditworthiness. The market will be supported by the demand from investment buyers – both individual and institutional. The former will continue to invest their capital in real estate, because despite the increases, with double-digit inflation, the real interest rate remains deeply negative. Flats that have become 10-12 percent more expensive in recent years. per year, they work well as assets to protect savings against impairment.
In 2021, cash buyers were responsible for 50 percent. of all transactions, and currently this percentage is as high as 70-80 percent. On the other hand, investment funds operating under institutional lease (PRS) should be more interested in purchasing large packages of premises or even entire housing estates. We expect that the demand for this type of real estate will increase as a result of the migration of Ukrainian citizens to Poland and the transition to the rental market of those who have lost their creditworthiness. For the home sales market in the second half of the year, the monetary policy and its actions may be of key importance, in particular the level of NBP interest rates and announcements as to the directions of their changes in the near and long term.
Bartosz Kuźniar, president of the management board of Lokum Deweloper S.A.
In the first half of the year, we contracted 177 apartments, 104 of which in the second quarter of this year. This result was 53 percent. lower than in the same period last year. However, it should be added that our offer was also halved in this period. Sales were significantly influenced by the introduction of the Polish Order, which lowered salaries, high inflation, the outbreak of war, but above all, a series of sharp increases in interest rates and the updated, restrictive recommendation of the Polish Financial Supervision Authority regarding the examination of creditworthiness.
As a result of the activities of the National Bank of Poland and the Polish Financial Supervision Authority, today transactions on the primary market are carried out only by people with high earnings or cash. Part of the transactions, due to the dynamically growing rental rates, are investment purchases. At the same time, a large increase in the costs of materials, salaries, land for development or investment financing inevitably translates into an increase in housing prices, regardless of low demand.
Understanding today’s difficult situation of potential buyers, we decided to postpone the start of new investments until the customers’ creditworthiness improves. This means, of course, an even more modest offer and lower planned sales volumes in the second half of the year.
Angelika Kliś, member of the management board of Atal
In the second quarter of 2022, the company concluded 587 development and preliminary agreements. In six-month terms, the decrease is around 35%. When interpreting these results, however, one must remember about a very high comparative base, as the previous year was record-breaking in terms of sales. We expect similar results in the second half of the year. In our case, the recent launch of sales in new investments, expected by the market, for example in the Atal Olimpijska skyscraper, should be positive. The recipients of prestigious investments, such as the one in Katowice, are customers who finance the purchase with a loan to a lesser extent or not at all.
Cezary Grabowski, Sales and Marketing Director of Bouygues Immobilier Polska
This year’s situation has changed a lot compared to the previous year. This mainly concerns the elements shaping the dynamics of demand. However, we still observe a lot of interest in flats. Our sales result in the second quarter of this year was better than that achieved in the first quarter of this year, which of course makes us very happy. Due to the increase in interest rates and more difficult access to loans for individual clients, there is a noticeable decline in interest in the purchase of premises by people using this type of financing.
However, the availability of loans is not the only factor determining the level of demand in the housing market. It is worth noting that in 2021, 6 out of 10 of our clients purchased a flat with cash. This year, along with a smaller number of customers using loans, we recorded a large increase in purchases for cash, which resulted in the above-mentioned good sales results.
Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at the Rob Groupyg
In the first half of 2022, the Robyg Group signed 1,241 development and preliminary agreements and 1,083 reservation agreements in Warsaw, Tricity, Poznań and Wrocław. The company recognized 785 premises in revenues.
The first half of 2022 was difficult for the entire economy and for Poles. We all supported the citizens of Ukraine. The housing market has also changed suddenly due to rising interest rates and high inflation. Nevertheless, the company achieves its goals by introducing new investments for sale. In accordance with the strategy announced together with the results for 2021, we changed our goals and redirected our activities partially to the PRS market. All our construction works are carried out according to the schedule. We strive to maintain a stable and smooth activity in terms of both construction and sale of apartments. We are also looking for land in various locations and we do not rule out entering new cities. Now we are waiting for the announced government actions to support borrowers and home buyers. It is very important for buyers to be able to build their future responsibly. Owning an apartment largely determines family decisions, and thus directly affects demographics.
Boaz Haim, CEO of Ronson Development
In the second quarter of 2022, we contracted the sale of 114 units and delivered 77 units. Our sales results are a natural result of the current economic situation, in particular the slowdown in the granting of mortgage loans to clients. At the same time, we see an improvement compared to the first quarter of this year. We recorded 15 percent. growth, therefore we remain optimistic.
The experiences related to the pandemic and the outbreak of war in Ukraine have taught us to flexibly react to market changes. We also diversify our offer even more to meet the changing needs and financial possibilities of our clients. Some of the apartments in the Miasto Moje and Viva Jagodno projects will qualify for government support programs, and next year we will commission the first 100 apartments dedicated to the PRS segment in the Ursus Centralny investment. Our sales statistics show that currently around 30 percent. customers are supported to a small extent by credit, and 70 percent. carries out a purchase for cash.
Sebastian Barandziak, President of the Management Board of Dekpol Deweloper
In the second quarter of 2022, we implemented the planned sales plan. Compared to last year, contracting was lower by about 30 percent. Considering the type of offer available in the first half of 2022 and the company’s further plans for the current year, as well as this year’s economic situation in the country and internationally, the noted difference in the level of contracting was not surprising and was anticipated.
Due to the diversified offer and many years of experience in the market, we assess the sales opportunities moderately positively. A large part of our projects are investments in the premium standard, which are mostly purchased by cash clients. In addition, thanks to our long-term presence on the market, we have an extensive customer base, as well as the ability to create new paths for acquiring buyers, which allows us to reach people with a budget that allows you to purchase both with and without external financing.
Zuzanna Dobra, Commercial Director at Eco Classic
This year’s sales results are significantly lower than last year’s. We are seeing a decline, not so much in the interest in purchasing, as in the reservations made and, as a result, in the concluded contracts. Many clients are forced to resign from buying flats due to lack of creditworthiness. In the case of our company, the decline in sales was also affected by the delay in introducing new investment stages. Due to the expected costs of project implementation, we decided to wait a few months to be able to verify the costs, and thus the profitability of the investment. In such a situation, the inability to supplement the offer naturally entails a decrease in sales. According to information from the market, it is now a fairly common strategy used by development companies.
Małgorzata Ostrowska, director of the Marketing and Sales Division at J.W. Construction Holding S.A.
The first half of the year ended with slightly weaker results than the year before, but still strong demand, especially investment demand, stimulated to a large extent by cash customers. The second half of the year and new challenges are ahead of us.
