Dom Development recorded PLN 174.48 million of consolidated net profit attributable to shareholders of the parent company in Q1 2021 against PLN 38.54 million of profit a year earlier, the company stated in its report.
The operating profit amounted to PLN 215.85 million compared to PLN 49.72 million profit a year earlier. Consolidated sales revenues reached PLN 807.91 million in Q1 2021 compared to PLN 314.14 million a year earlier. In Q1 the developer delivered 1,336 flats and commercial premises compared to 549 a year earlier.
In the first quarter of 2021, the group’s operations proceeded smoothly, and the market situation was favorable. The COVID-19 epidemic, which started in 2020, resulted in an increase in volatility in the economic environment and a significant diversification of the economic situation in individual industries. The demand for apartments was high in all market segments, and Its main support was the persistently low interest rates, which encouraged investors to invest in real estate, which, despite the difficult situation on the rental market, was still a more attractive form of investment compared to bank deposits with negative real interest rates. criteria for financing by banks, translated into increased availability of mortgage loans.
The market supply of flats in the first quarter of 2021 was under strong pressure due to the shortage of land, allowing for a quick start of investment and generating a satisfactory margin. The time for obtaining permits and administrative decisions was also noticeable. This is largely a consequence of restrictions in the activities of offices in connection with the COVID-19 epidemic. The Group did very well compared to the industry, efficiently supplementing the offer of new apartments and starting the construction of new projects.
On a standalone basis, the net profit in Q1 2021 was PLN 132.95 million compared to PLN 39.14 million in profit a year earlier.
Source: ISBnews
