Dom Development, the largest residential developer in Poland, has scotched hopes among international investors of a large-scale institutional sale in the near future.
Rumours began circulating earlier in the year that the Warsaw-listed company was considering a sale of up to 1,800 units across several major Polish cities similar in structure to a deal struck in France between Kaufman & Broad and Hines.
However, CEO Jaroslaw Szanajca told PropertyEU that although the company considers various options for development in the future, there is no plan on the table currently.
‘As for now, we are focussing on sales to individual buyers, as the demand on the Polish residential market is strongest in years,’ he said.
He was speaking in the wake of a dela to acquire a majority 77% stake in fellow Polish development company, Sento.
The company announced on 1 July the acquisition would expand Dom’s reach into Cracow, the second largest house-building market in Poland.
Dom now operates in the top four markets of Warsaw, Cracow, Tricity, and Wroclaw.
In a trading update, the company said it managed to sell 1,032 units in Q2 2021. At the same time, it delivered 556 units, which was 20% down year-on-year.
The company said: ‘In Q2 2021 sales volume outnumbered new launches in many Polish cities, leading to a supply deficit. As a result, we saw continuing price growth across all four markets we operate in.’
It continued: ‘Low interest rates, fear of inflation, and record household savings resulted in strong demand across all market segments, both from mortgage-supported clients and from cash buyers. The proportion of cash buyers at Dom Development Group stayed at approximately 40%.’
