0% credit. It’s certain: in a few days we will find out the offer. It will be hot

The Ministry of Development and Technology confirms: next week, a package of projects concerning the real estate market (including subsidies for loans) will go to the Economic Committee of the Council of Ministers. As part of the prepared projects, the ministry wants to propose:

• cheap apartments for rent,

• support for families with average incomes in the form of housing loans,

• removing investment barriers,

• release of land for development.

Zero Percent Loan and Other Proposals

“The three main pillars are: the development of municipal housing and social rental housing (apartments for cheap rental), support for households with average incomes in purchasing apartments using a mortgage loan in the conditions of its extremely high interest rate, solutions supporting supply, aimed at eliminating investment barriers and releasing land for housing development,” the ministry wrote in a statement sent to PAP.

The Economic Committee of the Council of Ministers is a body consisting of ministers and deputy ministers responsible for economic and financial matters. It is chaired by the Minister of Finance. Its task is to consider proposals for government initiatives concerning the economy and public finances.

A fierce discussion is coming, because while the coalition partners: the Left and Poland 2050 are ready to talk about building cheap apartments for rent (although everything depends on the specific proposals), they are staunch opponents of subsidies for loans. This is nothing new: the Left announced a few months ago that it would not support subsidies, because in its opinion they primarily support developers, and in addition they result in an increase in property prices.

“Start-up loan” – assumptions

According to the original proposal (we do not know to what extent it was maintained), the condition for obtaining subsidies under the project is to meet the income criterion, which is based on the first tax threshold, i.e. an annual income of PLN 120,000 gross.

In the program, this criterion is to be modified as the number of household members increases. However, exceeding the limits will not mean exclusion from the program – borrowers whose households exceed the limit will also be able to receive a new loan, but in their case the subsidy will be reduced. Childless people will receive a subsidy for installments with an interest rate of 1.5 percent. Families with one child – 1 percent, with two children 0.5 percent, and with three or more – 0 percent. The “Startup Loan” is to be granted for a period of at least 15 years, with an interest rate at a fixed level set for a period of 60 months.

Real Estate Prices: Where Are the Declines, Where is the Stabilization?

Since January, there has been no subsidy program in Poland, so the market is “regulating” itself. Sales have slowed down, the number of loans granted has dropped, and prices have fallen slightly. According to Expander and Rentier.io data, the largest decreases were in Toruń (-7.5%). Other cities where prices fell were Gdańsk (-3.1%), Rzeszów (-3.1%), Łódź (-2%), Białystok (-2%), Sosnowiec (-1.3%), Szczecin (-1.2%), Gdynia (-1%), Poznań (-0.8%) and Warsaw (-0.1%).

The largest price drops were recorded in the segment of small apartments in Sosnowiec (-9% q/q) and Wrocław (-6% q/q). In turn, the largest price increases occurred in the case of small apartments in Toruń (+14% q/q) and medium-sized apartments in Radom (+13% q/q).

In July, the number of apartments introduced for sale on the primary and secondary market increased significantly. The largest number of offers was in Warsaw (17.4 thousand), Wrocław (9.4 thousand) and Kraków (9.4 thousand).

According to GetHome.pl data, the first symptoms of stabilization of the average price per square meter appeared in May. However, it is only based on data from July that we can state that stabilization has already come to all metropolises. The average price per square meter has not changed for the third month in a row in Krakow (PLN 17.7 thousand/sq m) and the Tri-City (PLN 15.3 thousand/sq m) and for two months in Łódź (PLN 8.7 thousand/sq m). It also slowed down in Wrocław (PLN 14.1 thousand/sq m) and Poznań (PLN 11.7 thousand/sq m). A drop in apartment prices per square meter, by as much as 2 percent, occurred in Warsaw (PLN 18.3 thousand/sq m) and in the Upper Silesian-Zagłębie Metropolis (PLN 8.4 thousand/sq m).