Future strategy of the Polish leading developerReal Estate Companies
Originally Published in March 2019
Having experience in the development market for 18 years, The Murapol Group is a well-established housing developer possessing a rich portfolio of completed investment projects as well as an extensive portfolio of projects under construction and in preparation. The Company’s first investment project was implemented in Bielsko-Biała in 2001. Currently, Murapol has over 30 ongoing residential investments in the largest cities of Poland, as well as smaller cities, which create an attractive investment climate. As a result of both – diversified map of business activities and the offer containing apartments in popular segment available for people with income ensuring the best credit rating – the Group caters a wide range of clients. This is evidenced by one of the best annual sale of apartments. Murapol has already completed over 100 investments throughout the whole country, with its buildings located in Warsaw, Kraków, Poznań, Wrocław, Katowice, Gdańsk, Gdynia, Toruł, Łódź as well as in Tychy, Bielsko-Biała, Siewierz, and Wieliczka.
In 2018, the Company had over 125% increase of apartments delivered to its customers
In 2018, Murapol was the leading residential developer in Poland with 3,560 apartments sold, which was the second best result among developers in Poland. The Company also delivered 2,593 apartments to its customers – an increase of over 125% in comparison with 2017. Even if the number of apartments sold in Poland may have slightly decreased in general, the demand for new apartments has remained strong. The observed drop in the sale of apartments is caused rather by the decrease in the size of the developers’ offer than a change in demand structure. There is still a need to build approximately 2,5 million apartments in Poland to reach the EU average.
In 2019, Murapol already presented the project called “Offer 2000”, according to which in one day the Company offered 2,000 apartments for sale, with the usable floor area exceeding 85,000 square meters already being built in 13 investment projects in 11 cities. Such operation was performed for the first time on the Polish market and turned out to be the Company’s success. The largest investments are being performed in Kraków and Wieliczka, where approximately 560 new premises will be created. The Group also increases its offer with nearly 360 apartments in Katowice, and 275 apartments in Poznań, 245 new premises will be constructed in Gdynia, about 140 are dedicated to Wrocław and also 140 new apartments is being constructed in Toruń. Murapol is also constantly expanding into new regions of Poland, with the first Company’s investment started in Mikołów.
The total value of Murapol’s landbank at the end of 2018 was PLN 628,1 million. The value of lands already purchased by Murapol equals PLN 396,5 million, which will allow development of approximately 12,200 apartments until 2020. Remaining lands, valued at PLN 231,6 million are already contracted in the form of conditional preliminary agreements and will provide about 8,700 apartments. This number proves that Murapol is constantly developing and that the Group is perfectly fitted in the high market’s demands. The extensive landbank guarantees that within next few years Murapol’s investments will be continued, without the pressure of purchase new lands, which prices are currently inflated. The Company’s constant growth, strong and stable position on the market results in plans of listing its shares on the Warsaw Stock Exchange, which will happen during 2019.
During one day the Company offered 2,000 apartments for sale – such operation was performed for the first time on the Polish market
The Company’s success is based on the unique business model, which gather all competences required to perform new investments within the Group’s structure allows not only to improve the pace of performance, but also to quickly respond to the changes on the market. One of the Company’s main advantages is a geographical diversification of activities, which allows to fully use the potential of housing markets in all types of cities in Poland – big, medium and small. Additionally, usage of prefabricated materials and modular constructions helps keeping the investment costs at the effective level.
The Company has recently introduced a new strategy with reference to conducting its business. The mission of Murapol Capital Group is to implement housing investments in the popular segment, on the domestic market, considering high geographical diversification, at a competitive rate and prices compared to the largest developers in Poland. As a result, the Company’s primary focus will be the construction of new apartments – Murapol’s main business activity, in which the Company is the most experienced. At the same time, the mission of GK Murapol on the financial market is to build a strong position and trust through the issue of financial instruments such as shares on the exchange-regulated market.
The Company wishes to maintain the current potential and highly effective operating model while being ready for new competitive and market challenges. Main domestic markets, in which the demand for development is growing and Murapol plans to focus on are Warsaw, Tri-City, Wrocław, Kraków and Poznań. The expansion of the clientele, with affordable and cost-effective housing, is also Murapol’s development direction. The main benefits of upcoming investments are going to be attractive prices, fast delivery time and high quality.
Murapol also emphasizes it’s investments to use high-end technology solutions, from designing and budgeting 3D to using virtual reality in the sales process. Additionally, in every investment performed in the above mentioned “Offer 2000”, the Company already uses the Home Management System (HMS). These are modern solutions for remote control – for example via smartphone – of lights, heating devices, water and devices ensuring the safety of the apartments, such as window blinds. It also includes monitoring of electricity consumption, intercom and surveillance of the estate’s common space, such as exit gates, car park or playground. HMS is divided into several packages with different functionalities, to be chosen by future residents according to their preferences. The Group is constantly working on new solutions which will soon be introduced to its offer such as anti-smog packages and recuperative ventilation systems.
The Murapol Group was recognized for its business activity, by receiving awards such as Gazelles of Business 2017 and Pearl of the Polish Economy 2018, as well as its development activities by receiving the Leading Green Building Development award in the CIJ Awards 2017 competition and the award for the Family-Friendly Estate during Housemarket Silesia Awards 2019.
Apart from strengthening its position as one of the leading development companies, the Murapol Group also places emphasis on non-business activities. The Company is involved in initiatives promoting professional sport as well as physical activity among children and youth, which was noticed by the jury of the Responsible Business Awards competition, which awarded the Company in the category the Sport’s Patron in 2017.