Dom Development sold 931 net units in Q2 this year, including: 345 in Warsaw, 282 in the Tri-City, 194 in Wrocław and 110 in Kraków, the company said. The developer handed over 648 units in the period, including: 181 in Warsaw, 375 in the Tri-City, 59 in Wrocław and 33 in Kraków.
“Q2 2023 turned out to be another quarter in which we observed an improvement in the economic situation and a gradual recovery of sales in the residential real estate market. It was one of the calmest quarters in recent times since the pandemic. A key aspect was the search for a ‘new balance’ between demand and supply. The activation of the property market has been influenced by several factors, which have translated into a good sales performance. There has been a stabilisation of interest rate levels for many months. In addition, demand is positively influenced by the easing of creditworthiness assessment conditions by the FSA, which, combined with the significant increase in the average salary recorded in the last six months, has increased the availability of flats for customers in the popular segment,” commented CEO Jarosław Szanajca.
“Investing in residential property continues to be supported by the high inflation rate and strong rental market, as well as negative real interest rates on bank deposits. Interest in new flats is also increasing due to customers’ anticipation of the launch of the government’s ‘2% Secure Credit’ programme. This, combined with the still limited offer from developers after a difficult 2022, is translating into higher prices. At Dom Development Group, the share of mortgage-financed transactions in sales accounted for 46% of transactions in Q2 (compared to 40% in Q1 this year and around 30% in Q2 2022). Cash transactions accounted for 54% of sales, confirming the still high level of investment transactions,” Vice-President and CFO Leszek Stankiewicz added.
In response to the ever-growing demand, the group is successively launching further projects in line with market expectations, thus completing the range of available flats in all cities of its operations. This is facilitated by the stabilisation of construction costs, which gives greater predictability when launching new projects and thus limits the threat to margins. This ensures satisfactory profitability of the development projects under construction. The realisation of all the Dom Development Group’s investments by its own general contractors further promotes the profitability achieved while maintaining high quality, it was also stated.
“In the second half of 2023, we plan to continue to systematically expand our offer,” – Szanajca concluded.
Source: Dom Development and ISBnews
