Raising the standard

Dom Development is toasting last year's positive results. The residential developer's consolidated net profit amounted to zł.135 million in 2006 - a 160-percent increase on 2005's figure of zł.52 million. "Last year was a great and very dynamic time for the whole developer sector," said president Jarosław Szanajca.

Consolidated sales revenues for the year also showed healthy growth of 35.9 percent year-on-year, coming in at zł.729.8 million.

Szanajca explained that the good results stem from the increasing affluence of Polish families, the growing mortgage market and the decreasing unemployment rate.

In 2006 the company sold 1,755 apartments and houses and has another 5,869 under construction or at the planning stage. According to Szanajca, the company will focus on delivering standard apartments rather than luxury developments or houses. "We won't have so many luxury projects or renovations," said Szanajca. "We will now be more dedicated to the standard and upper-standard sectors and residential developments because, in our opinion, demand for these kinds of apartments is the most healthy, since there are not so many bulk purchases conducted by foreign investors."

In 2006, 96.1 percent of properties sold by Dom Development were in the standard and upper-standard categories.

These new developments will be built mostly in Warsaw's Białołęka district. However, the company, which has so far only been active in Warsaw, has started considering expanding its operations to other Polish cities. Szanajca revealed that the company has been considering this new direction since its debut on the stock exchange last October.