Finnish builder expands in CEE with acquisition of first Polish residential plot

Finnish builder-developer YIT Corporation has advanced its strategy of growing in the CEE region by acquiring a plot for its first residential project in Poland.

YIT’s Polish unit was established in autumn 2015 to tap into what the opportunities in what the company describes as one of Europe’s biggest residential markets. There is a significant need for new apartments in Poland stemming from the improving living standards and purchasing power of the close to 40 million population.

CEE countries represented 11% of YIT’s revenue in 2015. The revenue from the CEE housing business has grown at a double-digit rate now for several years, YIT said.

'Entering Poland is in key role in our strategic target to increase the weight of the CEE countries in our operations,' said Tom Sandvik, head of the Baltics and CEE business division at YIT. 'We believe firmly that by combining strong local expertise with the proven model of residential development already implemented in our other CEE units we will succeed also in Poland. In the beginning, we will focus on the residential market in Warsaw, but in the longer run we see opportunities also in other cities.'

The acquired residential plot is located in a residential area in Warsaw’s Mokotów district.The project has a valid building permit for around 300 apartments with sellable area of close to 18,000 m2. The project will be completed in three phases. Construction of the first phase comprising over 120 apartments is estimated to start in the second quarter of 2016.