Turnkey evolution

Developer Dom Development has announced that it will change its sales strategy and make all its apartments available in turnkey standard. The move is perceived as an answer to the growing supply of new apartments and slowing demand. The company believes that this will constitute a very attractive offer for potential buyers and will mark the beginning of a new trend in the Polish residential development sector.

Company officials admitted that the new strategy has been necessitated by changing conditions on the Polish residential market. At the same time, however, they said that this was the natural path of evolution in any maturing market. 

"We believe that the Polish real estate market is mature enough to offer fully finished and full-value apartments, so that the process of buying is a pleasure and the price, inclusive of the finishing work, is predictable," said Jarosław Szanajca, the president of Dom Development.

The company will still sell apartments in the so-called developer's, or unfinished, standard on request, but expects the benefits of its turnkey offer will make such requests rare.

"By using our turnkey offer, buyers will save both time and money. Thanks to the fact that the price of the finishing-work is included in the price of the apartment, it can be financed with a mortgage," said Jacek Orkisz, director of the investment department at Dom Development.

The company will offer three finishing standards: Klucz, Komfort and Premium. Each will have a catalog of finishing materials to choose from. Prices start at zł.400 per sqm.

Dom Development currently has over 2,800 units under construction, and another 7,700 apartments and houses in the planning stage. The total value of these projects is estimated at approximately zł.4 billion.

The WSE-listed company's Q1 2008 revenues rose by nine percent y/y to zł.187.5 million, while net profit jumped 21 percent to zł.45.4 million.