Develia bets on housing — exiting commercial, entering PRS and student housing

The decision: less commercial, more housing

On 18 February 2021 the supervisory board approved the “Develia Group Strategy for 2021–2025”. It assumed a focus on housing and a reduction of capital involvement in offices and retail, with the recovered funds returning to housing and institutional rental. The starting point matters here: Develia grew out of the former LC Corp, a developer with a strong commercial leg. The change of model therefore concerned the core of the company, not just cosmetic changes to the portfolio.

Selling off commercial: the Wola Retro example

The declarations were followed by transactions. In 2023 Develia sold the Warsaw office building Wola Retro to a fund managed by Adventum Group — for about EUR 69.8 million (about PLN 329 million). At the same time the company was tidying up its retail portfolio and gradually selling smaller commercial assets. The divestment is spread over years, because offices and retail are harder to sell at market price than apartments. The freed-up capital goes where Develia grows fastest — into land for housing.

Growth through acquisitions: Poznań and Warsaw

The other side of the strategy is expanding the housing portfolio through acquisitions. In July 2023 Develia finalised the purchase of the Polish companies of the French Nexity group — 100% of the shares in 19 subsidiaries and control over 10 limited partnerships, for EUR 100 million. It thus entered Poznań and increased its scale in Warsaw and Kraków: by about 1,400 apartments under construction and about 2,200 units in the land bank. In July 2025 the company bought Bouygues Immobilier Polska for EUR 65.9 million (about PLN 279.4 million), strengthening its position mainly in the capital — the acquired developer brought about 1,300 apartments in delivery and preparation and about 2,800 units on land secured by contracts (Warsaw, Wrocław, Poznań). The development market is consolidating, and Develia is on the buying side.

Goals to 2028: PRS and student housing

The direction is confirmed by the “Develia Group Strategy for 2024–2028”: sales of over 4,500 apartments a year by 2028, growth above 11 percent a year and an increase in its share of the markets where it operates to 7–8 percent. Part of the strategy is entering the living segment — the company assumes at least two PRS projects and student housing on average each year, and by 2028 is to complete the divestment of commercial assets and reinvest capital mainly in housing and rental. It is worth clarifying: Develia is not a “purely residential” developer. It is in the process of exiting commercial and, in parallel, building a living leg — it is not abandoning rental in favour of apartment sales alone.

Scale and dividend

For 2025 the general meeting decided to pay a dividend of PLN 0.73 per share (record date 25 September, payment 30 September 2026), up to PLN 342.8 million in total. Develia is therefore narrowing its model to housing and rental while maintaining a regular dividend. For an observer of the primary market, the mechanism underneath matters more: acquisitions and commercial sales are not one-off events, but a consistent shifting of capital into the fastest-growing segment.