Atal developer revises sales target for 2024 to 2,3-2,5k flats; expects margins of 26-27 pct

Listed housing developer Atal is revising its sales target for 2024 to between 2,300 and 2,500 flats, the company representatives told a video conference. For the whole of 2024, the management expects the gross sales margin to be around 26-27 percent.

"We originally assumed sales of 2,800 units, at the moment we have to adjust to 2,300-2,500 (...)," Atal's CEO Zbigniew Juroszek said.

"Of course, this is not certain, as the fourth quarter may be strong enough for there to be a recovery, but we assume a sales adjustment," he added.

In the first half of 2024, the Atal group contracted 1289 units. A year ago, it was 1136 flats.

"Of course we have a slowdown, especially in the last quarter (...). Weaker sales were in July and August, in September it is already better," the CEO continued.

According to Juroszek, the waiting period is decisive.

"This applies not only to the #naStart programme [state subsidised mortgage programme for first-time homebuyers - PAP ed.], whether it comes in or not (...), but there is also a waiting period for cheaper money, a drop in interest rates," he pointed out.

Atal's gross margin on sales in the first half of 2024 was 28.6 percent. For the whole of 2024, the management expects it to be around 26-27 percent and the net margin at around 20 percent.

doa/ ao/ nl/