If you need interpretation, select the interpretation button, and choose the language. Mr. Zbigniew Juroszek, CEO, is participating in today's conference. After the presentation, he's going to talk a little bit about the situation on the market, and of the Atal Group, and he'll be answering questions during the Q&A session. My name is Andrzej Biedronka-Tetla. I'm member of the Management Board for Finance. The plan is, as usual, after a brief presentation that I'm going to give, we will ask the CEO to comment on the current situation, and then we will request you to ask your questions by using the Q&A section. Let's start traditionally with a presentation, summarizing the results for Q3 2023. Let's start from operating activity.
Our portfolio, investments in progress, and in the pipeline at the end of September, we had 28 development undertakings, 6,639 flats altogether, and we are planning 51 new investments, encompassing 13,680 flats. What we're very happy about is that we can notice that these investments are distributed quite evenly in all the cities where we are present. Seven biggest agglomerations in Poland, that you are very well familiar with. As for something that is of interest now, this is sales of flats. Here in this top diagram, we're presenting sales by quarters. Contracts signed, preliminary contracts, were at a level of 760 flats. This is a level that is reaching those levels from before the war. And as we said, this level will be quite stable or even growing.
We've already started observing increased sales of flats purchase of flats due to the secure loan that is made available now, so the number is slightly more than in Q2. Now, number of flats sold net and in the bottom diagram, we see the division by years and the comparison of an increase by in sales by 11% as compared to the previous year comparable period. Now, sales of flats among the biggest developers was still quite high. Our offer at the end of Q3 2023, we offered free flats to the customers, and the level was quite typical for us, 4,170 flats.
As you can see, though, Q3 in 2022, this number is a little bit lower, so the sales decreased the number of flats in the offer, in other words. Handovers in the first three quarters of 2023, here, the revenues were contributed mainly by flats issued in, handed over in Wrocław, almost 500 flats, but also in the Tri-City and in Poznań. In the first, three quarters, we handed over 1,606 flats altogether. Handovers in the first three quarters, in comparison to the, the analogous period the previous year, the three quarters of 2023, there's a drop compared to the previous year by almost 40%, but this is, this was predictable. We were aware of that, and we reported to you.
Because this is dictated by the completion of investment and the schedules of completion, because majority of the construction works that we were to finalize this year have been completed, so we are just to give one more permit for use. That should be given to us shortly, so we'll be handing over those flats, majority of those flats, in Q4. And now, the handovers in the first three quarters of this year, in terms of total saleable area, so the number is almost 90,000 square meters, as compared to 152 square meters in the comparison period previous year. New land, this is something of interest, usually, to everybody. By the end of Q3, we purchased land for PLN 132 million, and the land that we've purchased will allow us to build-...
85,000 square meters of total sellable area. We purchased the land in all the cities, and the average price per square meter in the first three quarters was 1,554 PLN, so we're quite happy to have achieved that. As you can see, we buy land not only selectively, but we buy the best land that will allow us to build attractive, buildings, buildings in attractive locations. But the purchase price is maintained at a very decent level, I think better than that of the competition. The land bank of Atal will allow us to implement projects for 752,000 square meters. Dividend. We spoke about dividend last quarter.
Let's just mention that in Q3, we paid out the dividend in the amount of PLN 193.5 million, which was 54% of the net profit of Atal in the previous year, and the dividend rate was almost 11%. And let me just remind you that since our IPO on the Warsaw Stock Exchange, we've paid out PLN 950 million of dividend. Potential of handovers in 2023, I've already mentioned that. These are the projects that we're presenting in the slide that we've already built, finalized. Practically all of them, the gray ones are those that have the permit for use, and one project in Łódź has not received it yet, but we are anticipating to receive it shortly.
Now, the premises we've built, like 2,756, we've already contracted 91% of them. Now, it's probably higher because these numbers refer to the end of September, so it's 2,510 flats that are contracted. And the number of flats that were not transferred, it's 1,157, and this will populate the fourth quarter, and the handovers will be increased due to this number. So by combining these two numbers, 1,157 plus the 91% of contracts, that will give you the answer on handovers for Q4. The potential of handovers in 2024 is presented in the next slide.
In 2024, we're anticipating to finalize the construction of 2,195 flats, out of which 1,123 flats are already sold. So at the end of September, the sales contracting was at the level of 51%, so it's a very good level. And total potential of planned projects from 2025 onwards, these are all the cities where we are present, where we're planning on implementing 64 new projects, including 17,450 flats. And let me emphasize that this is to be built on land that we have as owners, or we have the Perpetual Usufruct right to it. We've got some preliminary contracts signed.
I mean, the land is not subject to some preliminary contracts, but we already have rights to that land, so that's good news. Now, the second part of the presentation, consolidated financial results. Revenues from sales as at the end of September, that's PLN 861 million. It's a drop by 39% as compared to the analogous period of the previous year, but this is the result of a smaller number of handovers by the end of Q3, and we are to catch it up in Q4. If you look at the gross result of sales, PLN 266 million for those three quarters, we observe, again, a drop as compared to the previous year, but it's just by 18%.
We obviously need to refer to the diagram on the right-hand side, where you can see gross margin on sales at the level of 31%. So this is a very decent, strong level that we're very happy to see, versus the previous comparable period, where it was almost 26%. Now, net result, it was 196 million PLN, so it generated net margin at the level of 23%, as compared to 20% in the comparable period of the previous year. Now, a comparison of those results in diagrams. The gross margin on sales increased by five percentage point. Net result, even though it dropped in nominal terms by 22%, the net margin increased by 2.7 percentage point. And here you can see gross margin on sales by quarters.
Obviously, we see this Q3 2023 with the lowest margin this year, which was obviously due to a small number of handovers in Q3 2023: there were two investments that were a little bit less profitable. They contributed the most to the results as regards of profitability of Q3 2023. And combined with the flats that we handed over with high profitability, but specifically arranged, this generated this profitability that we see. But if we handed over more of those flats in Q3, the total profitability would be probably higher, and in Q4, we are to improve the profitability. Mainly based on the fact that we'll have a lot of projects, and there'll be the result will be more averaged. Net margin by quarter, 16%, as a result of what I have said.
This is the lowest margin this year. Now, the balance sheets, financial standing, the main changes, assets increase, inventory increased. I will mention it in a moment. The balance sheet amount also increased. What happened here, and what we want to emphasize, is an increase in equity by 19% due to the issuance, due to the issue of July, an increase of share capital by PLN 252 million. We issued a new series of shares at the value of PLN 252 million. The nominal value is PLN 5 per share, and the issue value was PLN 56. This is the main change in the balance sheet. We'll define it and describe it in detail.
Net debt ratio for the group is 0.06, according to the definition provided by the banks. Now, if you look at these diagrams in terms of the balance sheet, you can see an increase in inventory, so ongoing construction works. Cash dropped due to the investments that are being carried out, but on the other hand, liabilities increased and... Sorry, equity, equity increased and liabilities decreased. So we can say that in this last quarter, the increase in inventory, so the construction production was financed from our own funds. And let's have a look at inventory once again. This increase in inventory, as you can see, by the end of 2022, it was lower. At the end of Q3 2023 was PLN 2,823 million.
This was mainly due to work in progress to PLN 387 million. So you can see an increase. And finished products, this number is almost doubled as compared to the end of last year. But let's go back to finished but not handed over flats. That's 1,152 flats and contracting 91%. So these are flats that we did not manage to hand over, but they are already sold. So there's not much finished products left. And structure of debt maturity. As of thirtieth of September 2023, we had PLN 120 million to be redeemed in Q4, and these bonds were purchased at the end. We redeemed them on the fifth of October, PLN 120 million.
Next, deadline is 70 in 2024. That's PLN 70 million. And in Q4, we issued a new series of bonds, PLN 260 million, with a margin of 1.5, six-month WIBOR. Now, sources of financing for the Atal Group, that's equity, mainly PLN 1,554 million, prepayments from customers, PLN 760 million, corporate bonds, PLN 270 million, loans granted by the shareholder, and bonds acquired by the shareholder. So to summarize, in this period, we started seven projects. Throughout this year, we launched the sales of six investments. We finalized the work for 14 investments. The number of currently offered flats is 4,170 flats.
We redeemed the bonds in April and June, with a total value of PLN 160 million, and obviously, we issued the bonds of worth PLN 260 million, and in Q3, we issued Series F shares worth PLN 252 million. So this is the summary. Now, I would like Mr. Zbigniew Juroszek, the CEO, to tell us a little bit about the current situation on the market and of the ATAL Group. Good morning, once again. Let me start with current ongoing sales. In the last month, it was at the level of 306 flats. In Q4, it's maintained at this level, so this assumption that was increased before the previous conference, the range to 2,700 flats-2,800 flats, this is quite realistic.
I think this will be finalized, this year will be finalized at this level. Current sales are very good. We spoke a lot about the 2%, mortgage loan. It's in operation, it functions well. We know that the servicing of that loan is longer in banks than the standard loan. There's some kind of jam in banks, and we've noticed that it was at the end of August, beginning of September. Now, it's a little bit better in banks, but the first wave of loans is behind us already. And obviously, we see regular other loans being banking, and we see other cash investments as well. They're quite stable. We've got products to respond to those needs. So as for sales, the situation is quite good, normal, but with no single direction, like only 2% loans.
No, it's quite balanced, quite even, because and that fits us because we have very diverse products, not only geographically, but also within one branch, we have more expensive and less expensive products, so it's all stable. We're not expecting major changes here. As for profitability, quarters, handovers, and so on, Mr. Andrzej Biedronka-Tetla, he's already described it in details, margins, handovers, and so on and so forth. I would like to make it all simpler. As a rule, we've been earning 120 PLN net per flat. That's what we should be focusing on, because analyzing each quarter, like a quarter when there were less profitable flat handed over, then there'll be more profitable flats handed over, so these bars will be changing up and down.
On average, in the last three months, we earn about PLN 120 thousand per flat. Probably, this Q4 will maintain this level. Now, the question is, how many flats will be handed over in that, in Q4? And Andrzej also mentioned that we've, we are handing over some flats on the verge of the next quarter. We plan to do it at the end of Q3, but at the beginning of Q4, they are handed over or have been handed over already. And we're also handing over further flats that were planned to be handed over. The whole range of flats that are to be handed over this year, we're just awaiting one last permit for use that we should be getting within the next few days.
Actually, there's no other project that has not been completed, not finalized, or where the permit for use has not been achieved. So I suspect this one will also be granted this permit, so this is quite stable. As for our plans, according to the presentation, we'll be introducing more, and I'm not anticipating any major changes. So much for my general introduction, but obviously, feel free to ask questions. Thank you. Now, I would like to ask you to use the Q&A box to write in your questions, and we'll be back in a minute. We're back after the break, and we're trying to answer your questions. The first question about Q3. Why this huge drop of margin, gross margin on sales? What about the profitability in the last quarter of this year? We've already discussed it, but let me repeat.
In Q3, when we had a small number of handovers, the situation was that we handed over flats at lower profitability, and more profitable products could not balance this margin. But for Q4, majority of projects are of very good profitability. Therefore, the profitability should rebound and increase. What are the plans for land purchase for 2024? Is it going to be a more intense period in terms of, than 2023? And what's the situation concerning the price of that? Let me answer that. In the presentation, we said that 2023, Q3, we already increased the number that was in the presentation by PLN 30 million. Then by the end of the year, it should be even bigger. So in total, we should have spent PLN 200 million for land purchase this year, in total.
As for 2024, we do have quite a lot of land. You could see it in the slides. So the priority is to develop on land that we already have. But to supplement them, the amount of land, to have a similar or bigger number of projects, the purchase will have to be like PLN 200 million-PLN 300 million, probably. That's what we assume, and that's what we require. These are our estimates, but we're still buying land at the end of this year. Another question: on what scale have you increased the price in 2023, and what price rises can you afford in 2024? For example, and what's the trend in increase, for example, the offer by other developers, who compares, taking that into account?
Now, in Q3, as compared to the average price of 2022, the increase was 8%, but that's the average value. Therefore, it's incomparable between projects. We've got different projects. Some have lower, some have higher prices, so you need to remember about that. We think that as for 2024, there's still potential for some increase in prices, and it could be some level similar to this year, so 7%-10% higher, as in terms of prices of flat. Now, the 2% loan. The funds for this program should end in January, probably. Don't you worry that demand might be affected by this fact, and thus, we are not sure about further drop in interest rates also. Obviously, this 2% loan has increased sales for all the developers.
About 60% of loans that are granted are under the Safe Loan 2% scheme. But we see that some demand is investment demand and traditional loan demand, so there'll be some probably settlement on the market, and it will level this demand, but we don't see any major threat with this regard at present. And then, next question: What are the target sales in 2024? Yes, well, our assumption as of today, with the market environment we have today, we're assuming about 3,000 flats-3,600 flats. This year will finalize with probably 2,700 flats-2,800 flats, and the assumption for 2024 is gonna be above 3,000 flats.
We're assuming it's gonna be closer to 3,500 flats, but we're assuming in our projections, it's gonna be 3,000 flats-3,600 flats. Now, a request for the comment of the structure of sales after the reduction of interest rates, is there more interest from clients? Well, we do see, we think yes, but we don't have hard statistics. We cannot run them, but we're estimating that about 40% of sales funds, that's own funds, and 60%, that's loans. And the 60%, out of the 60% that, another 60% of that amount, that's Safe Credit 2%. That's more or less our estimate.
So since we're talking about the structure of sales, let me add that about 70%-80%, according to our estimates, that's purchased for the buyer's own need, like the first flat or improvement of living conditions. And about 20%-30%, these are flats for rent or typical investment purchases. The next question: why are you capable of buying land at such attractive prices? Are there any flaws to that land that require improvement, or does it depend on the location? Well, we cannot tell you, give you all the details, but first of all, we've got cash, so we can, like, very quickly run a transaction, execute a transaction.
This is, like, our benefit, our advantage, and we prefer to have an underdeveloped infrastructure at lower prices and then improve the infrastructure instead of buying at commercial prices. Because if the price is at start already quite high, there's always some additional cost. Our approach is that we, first of all, prefer to add some money, to invest further money in infrastructure. Remember, the bigger plots are a bit cheaper than small plots. We usually buy very large plots, and we divide them into phases of construction. Very often, you see, like, . This is a famous location in Poland that was divided into six phases of construction, and the purchase was at a low level.
So in the statistics, you will have this, low price of purchase, but this is due to the fact that the preparation process lasted quite some time. It was divided into several phases, and this land is simply cheaper per square meter. We don't like very, very expensive land, and with the assumption that it's to provide 100% of ROI, right? Everything ready. Because sometimes, people think that if they, if you pay a very high price, then everything will be fine, but it's very often not the case, and we need to add some, money to that. And sometimes we do buy land at higher prices, but bigger land plots, that's our business model. Another question about, this Safe Loan, 2%. What was an increase in sales? The prices that-- So we've, we've answered that. What...
Now, the next question: What part of the sales is financed by the 2% loan? Well, about 60%, in general, is bought by funds from loans, and out of that, another 60% is about this Safe Loan, 2%. So 20%-30% in total is financed by this Safe Loan. Now, what can the sales look like if this Safe Loan finishes? We've already answered that. What's the current situation with contracting of subcontractors and the general construction cost? Does their level and perspectives for further months allowed to increase the margins? Well, in the last two to three quarters, the situation was good. We had some increasing prices at the end of last year and the beginning of this year. In Q2, Q3, the prices were stabilized with some drops, actually.
As for the perspective for 2024, the situation might be a little bit worse because the potential of development is measurable, and the potential of subcontractors it depends on subcontractors companies, and logistics centers, and so on. In the next year, 2024, also 2025, because of KPO funds being made available, there'll be probably more such entities, and therefore, subcontracting will have more maneuver to operate, and therefore, the prices, the rates might be higher for labor. As for materials, they will probably be at a relatively similar level. In the budgets, what we assume is about 5%-7% increase as general contracting services as a whole.
And the last question, I also think we've answered it: What do you think, will the sales of flats in 2024, can it be higher than in 2023? Or maybe the demand that would normally be distributed over two years, will it be condensed in 3-4 quarters, and in Q3 2024, there'll be a drop in the sales of flats? We've answered this question, actually. Our analysis shows that the demand will be either the same or even higher. We've assumed 3,000 to 3,600 flats for next year, because the program, 2%, it will be on a smaller scale. It will keep functioning, probably, but this basic level will be growing, I think. This was the last question.
Therefore, thank you very much for participating in our meeting, and next time, we'll probably meet next year, already around March. So feel free to contact us, in the meantime. All the best to all of you for the coming year, and thank you very much. Goodbye.