Thursday, 5 November 2026
ITB Development is using Devina in Bratislava’s Devínska Nová Ves to pursue a residential strategy built around lower initial buyer payments, tighter development margins and construction phases released according to actual market absorption.
In an interview with CIJ.World, Filip Matovič, COO of ITB Development, says buyers at Devina are required to pay just 9.9% of the apartment price initially, with the remaining 90.1% generally payable following occupancy approval. Buyers with additional capital can also opt for ITB’s Profit 5.5% investment product, currently offering a return of 5.5% per annum. These funds and the return can subsequently be used towards the apartment purchase, in accordance with the agreed terms.
CIJ.World: Devina is significantly larger than many of ITB Development’s previous projects, with more than 600 units planned across three phases. How are you deciding the pace at which each phase should be released and built?
Filip Matovič: This was the first time we succeeded in acquiring quite a large piece of land, which gave us considerable flexibility in planning. From the beginning, we knew we wanted to create something similar in philosophy to Čerešne, with residential buildings designed around families, greenery and community. We designed the project from the outset to be flexible in terms of phasing. There are three principal phases, but each can also be divided into smaller stages. The first phase consists of three buildings with around 223 apartments. Instead of bringing all three buildings to the market simultaneously, we started sales with the first building. This allows us to see how quickly the market absorbs the apartments before releasing the next one. The important advantage is that we prepared the permitting for the wider development, so we can add another stage to sales and construction relatively quickly when demand supports it. Sales began in September, and after a little more than a month we are very satisfied with demand. Based on the response so far, we expect to introduce the next building relatively soon.
CIJ.World: So market absorption, rather than simply a predetermined construction timetable, determines when you deploy capital into the next stage?
Filip Matovič: Yes. Market absorption is one of the main factors. You can decide to construct everything at once, but that can create problems on the sales side if the local market cannot absorb that number of apartments. We therefore look at every location individually. It is not really a question of our construction capacity because capacity can be increased. The important question is how quickly apartments can be sold in that particular location. We already know, for example, that we can sell more apartments within a phase at Čerešne because it is an established residential project and the surrounding Dúbravka market is larger than Devinska Nová Ves. In another strong location, such as Petržalka, the market could potentially absorb a much larger number of apartments in one stage. This flexibility means we are ready to accelerate subsequent stages as demand grows, while keeping the pace of development aligned with the market.
CIJ.World: Devina combines relatively accessible pricing with ceiling heating and cooling, heat pumps, photovoltaics and substantial communal amenities. With construction costs remaining under pressure, how have you protected the specification without making the apartments unaffordable?
Filip Matovič: A significant part comes from the knowledge accumulated through previous projects. Because we controlled a large site from the beginning, we could position and design the buildings efficiently. When you acquire a smaller plot and have to maximise the number of apartments within tight constraints, you often have to make compromises to satisfy orientation, sunlight and other requirements, and those compromises can increase construction costs. Here, the characteristics of the site allowed us to optimise the shapes and sizes of the buildings and approach procurement very precisely. We also have experience with technologies such as ceiling heating and cooling. We understand the costs and how to implement these systems efficiently, so providing a higher technical standard does not necessarily have to create an excessive construction-cost premium. There is no magic solution. It comes down to efficiency and the knowledge gained from previous developments.
CIJ.World: You have also indicated that ITB is prepared to accept a lower margin on Devina. Why?
Filip Matovič: We are looking at how quickly we can deliver the project and achieve turnover. Rather than simply trying to maximise the margin, we can decrease the margin somewhat if that helps us move through the project faster and achieve quicker capital turnover. The design of Devina helps us do that because the buildings are relatively efficient and repeatable. The first phase contains three similar buildings.
We have applied the knowledge and experience gained from our previous developments, including Čerešne, to make the project efficient from the outset. Because we were able to plan the entire site as a whole, we could coordinate building layouts, technical solutions and construction methods across the development. The first phase, for example, consists of three buildings that share key design principles and technical solutions. This creates efficiencies in construction and procurement and allows us to respond more quickly to demand.
CIJ.World: Buyers initially provide only 9.9% of the purchase price, with most of the balance payable after occupancy approval. How does that work alongside ITB’s own construction financing?
Filip Matovič: Our financing structure is generally straightforward. We provide our own equity at the beginning and then use bank financing once the required sales conditions have been achieved. Across our projects, the initial buyer installment is generally between 10% and 15%, with the remaining 85% to 90% paid after the occupancy permit. For Devina, we decided on 9.9%. There is actually a marketing reason behind the figure: Devina is our ninth project, so we wanted to work with the two nines. We agreed with the bank that we could go slightly below the usual 10% threshold. It does not fundamentally change our equity requirement. The project is principally financed through our equity and bank financing.
CIJ.World: Why is reducing that initial payment important in the present residential market?
Filip Matovič: The market standard for the initial instalment can be around 15%, while some developments require buyers to provide 20% or even more. We wanted to create an opportunity for customers who might find it difficult to provide 15% immediately, so they can secure an apartment at Devina with 9.9%. For example, if an apartment costs €200,000, the required initial payment is just under €20,000. At the same time, some buyers have more equity available. If that customer has €40,000, for example, they can provide the required amount and place additional money with us. We calculate interest on that additional amount, currently at 5.5%, and when the apartment is ready, the buyer can use those funds together with the accumulated return towards the final apartment payment. From our perspective, we see it primarily as an additional service for the customer.
CIJ.World: What price levels did you introduce when sales started?
Filip Matovič: When we launched sales in September, we started at relatively accessible levels. For example, three-room apartments were available from €256,000. Naturally, buyers looking at a new price list tend to focus first on the lowest-priced apartments, and those units have already sold. When we introduce the next building within the first phase, however, we expect to bring another selection of apartments to the market at attractive entry prices.
CIJ.World: Who is actually buying? Did you expect demand primarily from local owner-occupiers, employees in western Bratislava or investors?
Filip Matovič: Across our developments, our main focus is on people who are actually going to live in the apartments. We are primarily looking at families. Our apartments can be somewhat above the market average because we try to provide a higher standard, whether through materials, larger windows or technical features such as ceiling heating and cooling. Because of that positioning, we are generally not the first choice for pure investment buyers. Across our projects, investors typically account for less than 10% of purchasers, and we expect Devina ultimately to follow the same pattern. Devinska Nová Ves is also quite a distinctive part of Bratislava. We expected a significant proportion of demand to come from local buyers. The second important group is people who may not currently live there but work nearby, including employees connected with the Volkswagen plant, while investors represent the third group. At the beginning of sales, the investor percentage is always higher because investors react quickly to a new price list and calculate the potential return. At Devina, our first five buyers were investors. After that, we increasingly began seeing people looking for apartments in which they actually intend to live.
CIJ.World: Mortgage affordability remains challenging. What makes a residential development work under these conditions?
Filip Matovič: You have to have the right product. It starts with the land. You need infrastructure, appropriate zoning and sufficient development capacity, but you also need a site where the buildings and apartments can be positioned efficiently. We receive many offers for development land in Bratislava. Sometimes the headline price looks reasonable and the zoning initially appears suitable, but when you analyse the site you discover problems. The orientation may make it difficult to satisfy sunlight requirements, for example, or you can have a well-oriented site where the zoning only permits industrial development. Finding the right land is fundamental. With Devina, our objective was never to create a luxury development. We wanted a good-quality product for people who can afford it. Even when mortgage costs are higher, there is still demand if you combine the right price with good quality. Once buyers have decided on the general location, a difference of five minutes between competing projects may become less important. The product itself then becomes a major factor. That is where we compete, through the apartments, architecture, greenery, communal spaces and sense of community.
CIJ.World: If demand remains strong, how quickly could you complete the entire development?
Filip Matovič: It will ultimately depend on the market and the speed of sales. Construction of the first phase is expected to start next year, and we assume approximately two and a half years for delivery. If demand remains strong and allows us to move quickly from one phase to another, the entire development could potentially be completed by around 2031. But flexibility is important. The first three buildings are defined, while the timing of the following stages will depend on market absorption. If demand is strong, we can accelerate. If the market becomes more difficult, we have the ability to postpone subsequent phases.
CIJ.World: What did you learn from Čerešne that has materially changed how you are approaching Devina?
Filip Matovič: We started Čerešne more than ten years ago. Our focus was on four main elements: quality design, quality construction, greenery and community. We discovered that this matched what buyers wanted, but we also learned a great deal about how people actually use their apartments. In the first phase of Čerešne, for example, we created many different layouts and put considerable effort into making apartments individual. Over time, we realised that customers do not necessarily need so many variations. There are layouts that simply work very well. From phase to phase, we therefore improved the layouts and became much more precise about what customers value, and we have applied those lessons to Devina. Terraces are another example. Buyers want outside space, but they do not necessarily want the largest possible terrace if it substantially increases the purchase price. The objective is to provide enough outside space, storage and room for children while keeping the apartment compact enough to remain affordable. We have also carried forward the elements that worked particularly well at Čerešne, including landscaped common areas, places for children and shared greenery.
CIJ.World: Is creating larger multi-phase neighbourhoods now something ITB wants to replicate elsewhere?
Filip Matovič: Yes. We are constantly looking for locations where we can develop projects over several stages. Our focus remains primarily on creating places where people live rather than developments dominated by apartments purchased purely for investment. One of the most encouraging things at Čerešne is seeing people remain within the neighbourhood as their lives change. Someone may initially buy a smaller apartment and later buy a larger one in a subsequent phase rather than leaving. We also see residents buying apartments for their parents or children, and friends moving into the neighbourhood following recommendations. That tells us the community concept works, and it is something we want to reproduce elsewhere.
CIJ.World: How large can such a development become while still retaining a genuine community?
Filip Matovič: When Čerešne is completed, it will have close to 1,000 apartments. Depending on household sizes, that could mean roughly 2,500 to 3,000 residents, effectively the population of a small village. For us, that remains a scale at which you can still create a genuine community. If I had to identify an approximate optimum for this type of neighbourhood, around 1,000 homes can still work very well. Within an individual building, however, the considerations are different. For a family-oriented project, you do not want people to feel overcrowded. There needs to be air, space and a sense of freedom. We are preparing another project with a partner that could contain approximately 300 to 400 apartments in one building or development stage. It is closer to Bratislava city centre and aimed at a different customer. We would describe that project as more premium rather than luxury. Ultra-luxury residential development is not our core business. We want to develop good apartments for people to live in.
CIJ.World: If we return in three or four years, what would constitute success for Devina?
Filip Matovič: Our ambition is to create a successful residential community with quality construction, good amenities and a higher standard while maintaining a price that remains attractive to the market. We have given ourselves a difficult task because delivering all of those things together is not easy. But I hope that when we sit down again in three or four years and look at what has been completed, we will be able to say that we succeeded in that mission.
Source: © CIJ.World
