Decline in developers earnings

Property developers profit margin, in next two years, can drop even 50%. Companies are looking for profits in other additional services. More and more choose flats furnishing. Companies want to save profits by suggesting additional services – finishing and even furnishing flats.

According to Kacper Żak, analytics of developers companies DI BRE Bank, opinion, from projects which are in starting phase, developers have a profit margin around 15 – 20 %, while from these which are ready to reside it is around 30 – 40 %.

Developers companies are giving up selling flats in so called developer standard. That is with bare walls, without floors, inside door, white instalment and so on.