Victoria Dom developer sells 1,014 flats in 2024, down from 2,020 in 2023

The developer said in the press release that it is hoping for lower mortgage rates and higher sales in the coming months. It added that Victoria Dom is introducing new properties in the Warsaw agglomeration, Cracow and the Tri-City according to the plan, helped by a land bank that is expected to allow the construction of several thousand flats.

According to the company, 2024 has proven to be a difficult year for the real estate market, especially in the popular segment, which includes mid- and low-priced flats.

Victoria Dom also pointed out that high-interest rates and the high cost of living, meant that the availability of mortgages decreased significantly, which in turn affected the creditworthiness of potential buyers and, as a result, the decrease in demand for flats.

It added that despite rising construction costs and material prices, demand for flats in the popular segment, especially in large cities, remained relatively stable, although less dynamic.

"As expected, last year's sales were within the lower bounds of the plans for 2024. The restrictive policy of the central bank, the postponement in the introduction of several projects to the offer and the increase in the cost of construction, which translated into price increases in 2023 and 2024, successively inhibited the sale of flats in the segment that is most sensitive to the level of mortgage credit," said the company's deputy CEO Waldemar Wasiluk, quoted in the press release.

"The months-long unclear situation regarding the plans to introduce a support programme for young borrowers caused purchase decisions among customers entering the housing market to be postponed for several quarters. Recently, we have seen increased traffic in sales offices and are optimistic about the future. Interest rate cuts in the near future and the solid condition of the Polish economy will have a positive impact on the residential property segment. The last two quarters have allowed us to complete our residential offer in Warsaw, Cracow and Gdynia, where we are launching our first project," he added.

In addition, Victoria Dom reported that the new investments that it intends to launch in the coming months, will incorporate more flexible financing terms and innovative solutions to meet customer expectations.

"In 2025, we expect a recovery that will allow us to regain our sales momentum," Wasiluk said.

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