Developers have entered a difficult period

Sales of apartments by developers fell significantly in the third quarter. However, bankruptcy is not threatening them.

Developers sold half as many apartments as they did a year ago at this time. The WIG-Real Estate index fell by 25 percent over the year. However, it should be remembered that last year, in turn, sales were very high, as demand shifted from pandemic 2020. Despite this, developers still sold far fewer apartments than before the pandemic. According to experts, it is difficult to count on an improvement in the real estate market in the near future. Credit customers have practically disappeared from the market after interest rate hikes and the FSA’s requirements for calculating creditworthiness.

However, the risk that any development company will go bankrupt due to the current situation is not high. Developers have hedged themselves with cash during the past boom years. Dom Development is doing particularly well. It is also apparent that developers are limiting new investments. They are anxious not to lower prices and to preserve liquidity.

Source: https://www.pb.pl/trudny-czas-deweloperow-1166894