Echo Investment maintains sales target of 4,000 flats per year

Listed developer Echo Investment maintains its long-term sales target of 4,000 flats per year. Echo Investment sees customers returning to sales offices after the summer holiday break and assesses that the slowdown in the market is temporary, company representatives told a conference.

"We believe that we are in a period of price stabilization, and we need to adjust to this. We are in a period of uncertainty - customers don't know if there will be a new support programme in place, which can hold back purchasing decisions," deputy CFO told a conference.

"But in September, we see that customers are coming back, and we believe that the market base is strong and that the slowdown is only temporary," he added.

In the entire first half of 2024, the group, under the Archicom brand, sold 882 units, an increase of nearly 10 percent compared to the same period a year ago and delivered 480 flats.

The long-term goal is to sell 4,000 flats per year. The group aims to reach 2,600 by the end of 2024.

The portfolio of the Resi4Rent platform, a subscription housing provider, grew in the first half of the year to 4,400 finished rental flats in 15 locations. By the end of 2024, the group plans to have more than 6,200 operational flats of this type and another 4,000 under construction.

In the presentation, the company said it is focused on reaching a sales level of 4,000 units per year from 2025.

"We introduced plenty of units for sale in the second quarter, and we will see the effects of this in the following quarters (...). We see that after the holidays, customers are coming back," CEO Nicklas Lindberg said.

"Smaller developers may be struggling, so we are likely to see consolidation in the market," he added.

In the commercial segment, as stated in the presentation, the projects for sale are React I in Lodz, City II in Wroclaw (developed by Archicom), Brain Park I in Krakow, Brain Park II in Krakow and Libero in Katowice.

doa/ han/ nl/