Record half-year for Dom Development
ResidentialThe company sold most of the apartments in its Saska, Żoliborz Artystyczny, Ursynovia and Wilno projects. The company’s total sales in H1 amounted to 1,316 apartments compared to 1,056 in H1 2015 (a y-o-y growth of 24 pct). In Q2 Dom Development handed over 564 apartments compared to 375 apartments in Q2 2015 (a 50 pct growth). Its Q2 financial result was mostly affected by apartments handed over in its Wilno (199 units), Klasyków (118) and Saska (99) projects. The company handed over a total of 820 apartments in H1 2016, an increase of 45 pct compared on H1 2015, when 565 apartments were handed over.
“The demand has still been very strong, despite factors that have been having a negative impact on the current sales of apartments, such as the reduction of the availability of mortgages, the drying up of funds for the governmental ‘Apartments for the Young’ scheme, as well as the announcement of the Apartment+ programme, which could encourage people to postpone their purchase of apartments, hoping for the support from the state. The continuing strong demand confirms its healthy basis and the market’s entry on the new ‘normal level’. The potential of the Warsaw market is particularly promising, since it is the largest job market and a migration destination, with a significant proportion of single-person households. In Q2 2016 we observed a growth in cash-based purchases from Dom Development, to app. 40 pct of the total number of transactions. The attractiveness of real estate as a form of capital investment is certainly not without importance here – increasing insecurity and changeability on the global capital markets could translate into a greater interest in apartments considered as ‘safe havens’ among investment options,” believes Jarosław Szanajca, the president of Dom Development.
“In spite of the greater activity among the main players, the market remains balanced in terms of demand and supply. The factor that is stabilising developers’ activity is the trickier access to investment land and financing. Thanks to this the demand and the supply are balanced and the main beneficiaries of the market’s strength are companies such as Dom Development, which have a lot of capital and large and diversified land banks,” explains the head of Dom Development.
An open door to redefining the commercial real estate market in Poland
An open door to redefining the commercial real estate market in Poland
Walter Herz
The investment slowdown in the commercial real estate sector that we have been observing in Poland for over a year is primarily the result of the tightening of monetary policy arou ...
The retail sector is not slowing down
The retail sector is not slowing down
Walter Herz
The pandemic, conflict in Ukraine as well as inflation and high interest rates that recent years have brought have reshaped the real estate market around the world. The global slow ...
Retail parks – current opportunities
Retail parks – current opportunities
Avison Young
Over the last few years, retail parks in Poland were mostly developed in smaller formats, around 5,000 sqm, either adding to the existing retail landscape or introducing modern ret ...