What was 2024 like for Matexi Polska? You sold only 318 apartments in this period, less than the year before (461)…

We view the past 2024 positively. Lower sales than in the previous year were due to our plans, and despite this, we achieved our projected financial results of nearly PLN 400 million. In our key markets - Warsaw and Kraków - a balance was achieved between demand and supply, but it must be emphasised that both markets do not achieve their potential and bthe alance is meet at the low level of the offer. On the other hand, the increase in property prices remained close to inflation.

The stabilisation of the situation in the real estate market is beneficial for all participants - both buyers and sellers. This translates into greater predictability and the ability to plan activities better. Operating in a stable market environment, developers can more effectively implement new investments, matching their scale to demand.

It is worth remembering that last year was a period in which the “2% Safe Mortgage” programme ended and the government announced the launch of a new form of support. As a result, many buyers held back on their purchase decision, which translated into a drop in flat sales compared to the previous year, which was also a high base. This applied not only to Matexi Polska but also to most developers. We are convinced that demand for apartments will increase in 2025. We are planning the highest sales in our 15-year history on the Polish market at the level of almost 500 apartments and the preparation of more than 400 units within the PRS segment.

You have recently introduced as many as five new projects for sale - 3 in Warsaw and 2 in Kraków. You are increasing supply, while most of your competitors tend to limit it. Why such a strategy?

We are launching new development projects to meet the growing demand for modern and functional apartments. The dynamic development of the real estate market and the changing needs of our customers motivate us to realise investments that combine the comfort of living with an attractive location and high-quality workmanship. As a result, we are strengthening our position in the market and consistently pursuing our long-term growth strategy. Our offer is aimed at medium-income customers, both those looking for a place to live and those looking for an investment. They have greater savings and higher creditworthiness. This is a group that is not only guided by price when choosing an apartment but also by quality and functionality. We have good quality products, in convenient locations that stand up for themselves even in tougher times.

At the end of last year, the government finally abandoned the introduction of the “Mieszkanie na Start” programme, also known as the “Mortgage 0%”. What impact do you think the decision will have on the residential market in Poland’

Last year's announcements of the introduction of the “Mortgage 0%” caused customers to hold off on buying apartments, while developers launched new projects hoping for an increase in demand, just as they did during the previous government programme. Eventually, as we know, the government withdrew from its implementation, announcing another form of support. The details will be provided in the first quarter of this year. However, it is known that its impact on the residential market will be very limited. Rather, the key will be the fall in inflation. The expected reduction in interest rates will certainly translate into greater availability of mortgages. As a result, many more people will be able to afford to buy a home without the need for support programmes. A stable economy and a systematic increase in the wealth of society are of far greater importance for the residential market than the launching of further support initiatives. All the more so the effectiveness of such programmes is questionable and often controversial, although they stimulate demand, as the past has shown, they also indirectly contribute to an increase in housing prices.

You are also active in the institutional rental housing (PRS) segment. How do you assess the current investment outlook for this sector?

We expect that the gradual cuts in interest rates will also translate into growing interest in block purchases of apartments from funds operating in the private rental segment (PRS). We plan to sell more than 400 units under this formula this year. We have an extensive land bank with projects for more than 3,000 apartments, some of which we want to target specifically to the PRS sector. We also intend to continue purchasing land in the agglomerations we serve, which will further strengthen our development potential.

In your opinion, what is the biggest barrier to development activity in Poland at the moment?

Above all, it is worth highlighting the positive changes affecting the property market. One of them is the recent amendment to the Aviation Law. The main purpose was to repeal the obligation, introduced a little over 20 years ago, to adopt local development plans for areas covered by the airport master plan (it is worth remembering that it covers both the areas of the airport itself, but also very broad zones around it). Instead, the new legislation merely reinstates the need to agree on the draft zoning decision with the President of the Civil Aviation Authority. This will allow investors to continue with the proceedings for issuing zoning decisions and then obtain building permits. This will unlock investment opportunities and allow investments to be made on land within the airport master plan area.

On the other hand, there are still many barriers. Among other things, the industry is struggling with a shortage of available land, which is driving up land prices. The uncertainty surrounding land-use planning and the long waiting time for building permits further increase financing costs. Here, we are counting on the enactment of the so-called Supply Act, which aims to increase the availability of land for housing and facilitate new developments.

The rising costs are also significantly influenced by persistent inflation and the resulting high interest rates on loans and debt. At the same time, construction costs have been stable for some time, but contractors are badly affected by the shortage of labour. This translates into longer construction periods. Buildings used to be constructed in 15-18 months, but now it takes 21-24 months.