Atal developer with 2068 residential and commercial units contracted in 2024

In the fourth quarter alone, broken down by month, Atal had 127 development and preliminary agreements in October, 133 development and preliminary agreements in November and 185 development and preliminary agreements in December.

"We see that for several months the demand for flats has remained stable. This does not change the fact that there is also uncertainty on the part of customers due to the high cost of mortgages in Poland, which are the most expensive in Europe," said Atal's CEO Zbigniew Juroszek, quoted in the press release.

According to him, the economic situation in 2025 will be affected by the level of interest rates.

"We assume that rates will be lowered in 2025, which will improve the creditworthiness of buyers, as well as positively translate into decision-making related to the purchase of real estate," Juroszek said.

Atal's CEO estimates that the demand stimulus will not, however, trigger a significant, i.e. beyond inflation, price increase, due to the large supply of new flats.

"Their prices remain stable; we do not observe indications of their dynamic increase or decrease. The costs of workmanship and building materials are currently not changing much," Juroszek said.

"Land prices, which are high in the largest cities, remain a challenge. However, balancing these factors, it is expected that prices will not fluctuate significantly," he added.

Zbigniew Juroszek pointed out that the political and legislative environment is still an unknown. This is because it can affect the market situation, as exemplified by the months-long stalemate over the decision on credit subsidies, which has made buyers refrain from the purchasing decisions.

"It is still difficult to predict what the government's housing policy will look like. Certainly, the housing market needs stability of regulation and streamlining of administrative issues that significantly affect the cost of housing construction," Atal's CEO said.

Atal Group generated PLN 1.215 billion (EUR 284.8 mln) in consolidated revenues from January to September 2024, after releasing 2021 units to customers. This represents a year-on-year increase of more than 41 percent.

Consolidated net profit after three quarters of 2024 amounted to PLN 254.8 million (EUR 59.73 mln), up by more than 30 percent from the prior year period. The net margin in the three quarters of 2024 was 21 percent.

pr/ ao/