Echo Investment expects that the gross margin in the segment of apartments for sale will not fall in 2023, according to CEO Nicklas Lindberg. According to him, the sale of apartments on the Polish market has stabilized at a lower level.
“We do not think [in 2023] there will be lower margins than this year, based on the products we are handing over to customers next year,” Lindberg said at a press conference.
The CEO assessed that in the case of apartments in the centers of the largest cities, prices per m2 will continue to rise as there will be more and more buyers. However, in the popular segment, prices may drop.
“We focus on city centers, not popular flats,” emphasized the president.
According to him, on the residential market in Poland, “sales have stabilized at a lower level. The supply will also be smaller, so the market is balanced with a lower pace of sales,” he said.
“In H1, we sold over 1000 apartments, we have 9 months of sales based on the current offer, we do not have a lot of inventory. The goal is to ensure a stable margin in all projects. The problem is in the popular segment and we are focusing on moving to where there are more cash buyers, “Lindberg pointed out.
He announced that the company will also maintain the strategy of selling 80% of apartments during the investment and 20% after its completion, and that “it will not go down the price”.
In the first half of this year. Echo and Archicom sold 1,027 apartments. In the presentation, the company stated that the offer of 1,635 well-located apartments meets the current demand.
Echo predicts that its second residential segment, Resi4Rent, will also thrive in the face of rising rental rates.
“This year we see an opportunity to start the construction of 4,000 units [in R4R],” said Maciej Drozd, vice president.
In the presentation, the company announced that it has 2,450 Resi4Rent units in completed projects; projects are 100% leased with rent 30% higher y / y. The land bank secures 90% of the target 10,000 R4R apartments.
Source: Echo Investment and ISBnews
