What were the sales results of residential developers in the first months of this year? Have shoppers’ preferences changed over the past year? Which apartments are the most popular now? The survey was developed by the real estate website dompress.pl
Andrzej Oślizło, President of the Management Board of Develia S.A.:
The first quarter of 2022 was good for us in terms of sales. We found buyers for 603 premises. For comparison, in the same period of last year, we signed 580 contracts. Such a result was possible thanks to a significant increase in the offer. Since the beginning of the year, we have introduced approximately 1,500 apartments for sale. However, we expect that as a result of further interest rate increases and the entry into force of the amendment to the so-called S recommendation of the Polish Financial Supervision Authority, customer interest in the following months of this year. will decrease.
Andrzej Gutowski, Vice President, Sales Director of Ronson Development:
In the first four months of 2022, we sold 130 apartments. This result is in line with our sales plan this year, although it is no secret that the market has shrunk by nearly 40 percent. This is due to an increase in interest rates and the related limited availability of loans, as well as rising construction costs, which are an additional price factor. As a result, the percentage of investor clients who pay in cash and buy flats with compact dimensions, ideal for rent, is growing.
Adrian Potoczek, development director at Wawel Service:
Our clients are still eager to invest in real estate because they realize that in the event of high inflation, buying an apartment is still a good capital investment. However, we have noticed a shift in the interest of buyers from larger premises to smaller apartments, most often with two rooms.
Zuzanna Dobra, Commercial Director at Eco Classic:
In the first four months of this year, we recorded a decrease in sales of mainly larger, three and four-room apartments. The purchase of such flats was partially or mostly financed by the clients with a loan. The NBP data show that the sale of mortgages in April 2022 fell by nearly 40% annually, which had to be translated into sales.
Edyta Kołodziej, Sales and Marketing Director at Nickel Development:
The first four months of this year were marked by uncertainty. The beginning of the year was promising, but after the Russian aggression against Ukraine, the number of inquiries decreased significantly. The declining traffic of people buying flats for themselves was replaced by investors, even buying a few flats. The latter were attracted by changes in the rental market, where rents increased significantly to the benefit of landlords. The group of potential tenants was joined by Ukrainians and Belarusians fleeing the war, as well as Poles, whose interest rate increases have been successfully excluded from the primary market. In the case of our clients, there is no significant difference in preferences compared to previous years. They are still the most willing to buy two-room flats with an area of up to 40 sq m, regardless of whether we are talking about investors or buyers for their own use.
Michał Witkowski, sales director of Lokum Deweloper S.A.:
In the case of sales results, we can talk about a constant growing trend throughout the year, taking into account also reservation agreements. On the one hand, we observe an unwavering interest in real estate purchased for investment purposes, and on the other hand, still unmet needs in terms of buying a flat for personal use. At the same time, we see a decline in the impact of emotional factors on buyers’ decisions and the presence of cash in the market. We cannot ignore the fact that there is a noticeable slowdown in sales, due to the fact that it results from more difficult access to financing by credit customers. However, we notice the interest of cash buyers, while in the case of credit customers, understanding the amount of installments and determination in implementing their plans. We talk to clients about both apartments and the mechanisms that affect the cost of the loan today and its impact on the purchase price, which is weakened in time.
Buyers’ starting preferences are very similar to those with whom customers talked also in the previous year. This applies to both investors and home buyers. They are verified as soon as we come to the question of financing possibilities. Then, buyers decide to have a smaller real estate area or change the location in order to adjust the price of the apartment to their creditworthiness.
Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at the Robyg Group:
Since the beginning of 2022, we have had many events in Europe and Poland. The war in Ukraine, the influx of refugees, as well as new tax regulations and huge inflation had a significant impact on the market. It is still difficult to assess the long-term trends that will appear on the residential real estate market. In March, the Robyg Group announced an update of its strategy in connection with the acquisition of a new owner and strategic partner – Tag Immobilien. Our goal is to have 20,000 apartments for rent by the end of 2027. We plan to continue selling apartments at the level of 2,500 units per year.
Joanna Janowicz, managing director at Constructa Plus:
It is difficult to compare the period since the beginning of the year with what happened after the Russian aggression against Ukraine. For the first month and a half after the outbreak of the war, sales slowed down visibly, but then we started to make up for this slowdown. We currently have the same pace of sales as last year at this time. Our clients’ preferences remain unchanged. For years, the most popular two-room flats are still the subject of customer inquiries. Nothing has changed in this respect.
Mariola Żak, sales and marketing director at Aurec Home:
Despite major changes on the real estate market, we have been implementing our sales plans since the beginning of 2022. The years 2020 and 2021 have surprised many analysts and developers in terms of demand. We do not compare our sales assumptions to the previous year, but we analyze the market situation reasonably. More expensive money translated into less interest in buying flats. The uncertain offer for borrowers and the still unclear criteria of the government program Flat Without Own Contribution are not helping either. We have noticed, however, that clients do not give up buying an apartment so easily. Some of them decide to buy smaller premises or look for alternative ways to buy their own M. Still the most popular are two-room apartments with an area of 40 – 45 sq m.
Agata Zambrzycka, Director of Customer Relations at Aria Development:
Sales are stable, although we are seeing a slowdown. Credit costs increased and the creditworthiness of buyers decreased significantly. Currently, the majority of clients who do not use financing are choosing flats with a smaller area.
Sebastian Barandziak, president of the management board of Dekpol Deweloper:
Taking into account the first four months of last year and this year, there is no significant difference in the number of contracts concluded. The difference does not exceed 10%. The slowdown in customers’ purchasing decisions was noticeable at the end of February and March 2022, which was caused by the outbreak of the war in Ukraine. In April and May this year, however, we see a return to the pre-war situation.
In the housing market, the key issue in the decision is the price due to increases in interest rates and changes in customers’ creditworthiness. For the purpose of living, the most frequently chosen premises are relatively small space and a low total price, but which allow the arrangement of two, three and, slightly less frequently, four rooms. Clients consider the purchase of large-area flats more carefully due to the price, but cash buyers still choose them.
People looking for investment premises for rent, due to the reflection of the rental market, most often choose two-room premises with the smallest possible space with a living and sleeping area, because it gives them the widest group of recipients and a satisfactory rental price. In the premium segment, the preferences have not changed, but due to the outbreak of the war in Ukraine and in the face of economic changes, customers are more cautious when making decisions that weigh heavily on their wallets. Some have given up purchasing in Poland and are considering other markets.
