The Develia Group is reporting that it achieved a net profit of PLN 65.2 million in the first quarter of 2025, a decrease from PLN 84.4 million net profit in the first quarter of 2024.
The group’s sales revenues in the first quarter of the year decreased from PLN 401.6 million last year to PLN 253.5 million in 2025, and, as reported by CEE Real Estate Matters on April 8, 2025, the developer reported selling 951 units in Q1 compared to 1038 in the same period last year. According to Develia, the group also “delivered 524 apartments, i.e. 12% less y/y, which had an impact on the decline in sales revenues. The goal of deliveries for 2025 is 2900-3100 units, and their accumulation is expected in the fourth quarter of this year.”
At the end of March 2025, Develia reported having a total of PLN 682.5 million in cash and short-term financial assets compared to PLN 840.6 million at the end of 2024.
“In the first quarter, we recorded a solid sales result and a significant improvement compared to the third and fourth quarters of the previous, record-breaking year,” said Develia CEO Andrzej Oslizlo. “This result strengthens our position at the forefront of residential developers and provides a good basis for achieving this year’s goals. The May interest rate cut is the first positive signal for the market. This is a significant jump in the creditworthiness of buyers, which, as we expect, will support the demand for apartments in the coming months.”
In the first quarter of this year, Develia sold 951 apartments (including four units in investments carried out with Grupo Lar Polska). The largest number of apartments found buyers in the Aleje Praskie and Bemowo Vita projects in Warsaw, Traugutta Vita and Orawska Vita in Wroclaw, Przemyska Vita and Poludnie Vita in Gdansk, Centralna Vita and City Vibe in Krakow, and Krolowej Jadwigi in Poznan.
As reported by CEE Real Estate Matters on May 1, 2025, at the end of April this year, Develia signed a preliminary agreement to acquire 100% of the shares of Bouygues Immobilier Polska, a branch of French developer Bouygues Immobilier. According to Develia, as a result of that deal, the developer “will increase the number of apartments under construction and the potential of the land bank in Warsaw, Poznan, and Wroclaw. At the end of 2024, Bouygues Immobilier Polska had about 1300 apartments under construction and preparation, of which 1098 had already been signed development contracts. In addition, the company owned approximately 2800 units in land secured by preliminary agreements. Develia will finance the transaction from its own funds with the option of refinancing with a bank loan. The agreement should be finalized by June 30, 2025, subject to the approval of the President of UOKiK for the concentration.”
In the first quarter of this year, Develia continued its efforts to finalize the sale of Arkady Wroclawskie, which is expects to wrap up by the end of August this year. This past January, the company bought land at Orląt Lwowskich Square in Wroclaw, where it plans to build a dormitory with approximately 600 rooms and two commercial premises. According to the preliminary plan, construction on the dormitory at Orląt Lwowskich Square in Wroclaw will begin in 2026, and is expected to last two years.
According to Develia, “the decrease in revenues is due to a smaller number of apartments delivered, in particular units completed by Develia (i.e., without joint-venture). Apartments developed in cooperation with Grupo Lar Polska accounted for 30% of all deliveries in the first quarter of this year. In the first quarter of 2025, the share in profits of entities accounted for using the joint-venture equity method amounted to PLN 13.3 million, compared to a loss of PLN 0.7 million in the corresponding period of the previous year.”
“The result for the first quarter reflects a lower number of units delivered compared to the same period last year, as well as a handover structure characterized by a large share of units completed as part of joint-ventures,” explained Pawel Ruszczak, Vice-President of Develia’s Management Board. “We expect an accumulation of handovers at the end of the year, which is in line with the schedule of projects we are implementing and will build our financial result in the last quarter of this year. As we announced, we do not rule out the possibility of refinancing the purchase with a bank loan at a later date.”
“In line with our policy, we want to share last year’s record profit with shareholders,” Ruszczak continued. “In May, we recommended to the General Meeting the payment of the highest dividend in the company’s history at the level of PLN 265.5 million, i.e. PLN 0.58 per share.”
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