Polish Atal wants to deliver 2,756 apartments this year and does not expect price drops

by   CIJ News iDesk III
2023-03-23   09:29
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Atal plans to deliver 15 projects this year, which will include the construction of a total of 2,756 apartments, the company reported. According to CEO Zbigniew Juroszek, Atal does not expect housing price reductions in 2023.

Throughout 2023, the capital group plans to complete and put into operation 15 projects, which in total will include the construction of 2,756 apartments (about 155,000 sqm of PUM), including:

* 1 project for 121 apartments in Krakow,

* 2 projects for 224 apartments in Warsaw,

* 3 projects for 510 apartments in Wroclaw,

* 3 projects for 629 apartments in the Tri-City,

* 2 projects for 505 apartments in the Silesian Agglomeration,

* 2 projects for 336 apartments in Lodz,

* 2 projects for 431 apartments in Poznań." - reads the management report.

The Group already has adequate land resources to launch or begin preparations for development projects in the coming years. According to preliminary assumptions, on the land it owns so far, it will be able to develop and transfer in 2023-2028 about 83 projects for almost 1.2 million2 PUM.

"In 2023, we do not expect housing price reductions, we do not see conditions for this. This is especially true for the largest cities where our operations are concentrated. The price freeze is influenced by the still high pressure on construction costs, as well as a systematic reduction in the supply of apartments from smaller developers. It takes about two years to produce a product in our industry, so decisions to halt construction will have consequences as early as 2023, as well as in the following years if the situation does not change," said Juroszek.

"In the second half of 2022, sales stabilized at about 125-130 units per month. Currently, our assumed model indicates that the first two quarters of 2023 will be similar to the third and fourth quarters of 2022, with a possible tendency to rebound in the second half of 2023," the CEO added.

Source: Atal and ISBnews