0% mortgage won’t boost housing prices? “There will be no trips to sales offices”
In the autumn, the act on 0% housing loans is to be submitted to the parliament for consideration. According to the expert, unlike the previous government program, this time the subsidies for loans will not cause a sharp increase in housing prices. – We will have a specific limit of funds granted on a quarterly basis – explains Michał Kijewski, advisor to the Polish Association of Developers, in an interview with Wprost.pl.
The draft of the government program “Kredyt na start” is to be submitted to parliament immediately after the summer holidays, Deputy Minister of Development and Technology Jacek Tomczak announced in the Senate. He added that the ministry wants the act to be passed this year, and the program to enter into force on January 15, 2025. With the resumption of work on the program of subsidies for loans, concerns about the increase in real estate prices are returning.
Demand drives up prices
The previous government’s program of subsidized loans, according to many experts, caused a sharp increase in real estate prices. This time, however, it is supposed to be different.
– We will have a specific limit on the funds granted on a quarterly basis – explains Michał Kijewski, advisor to the Polish Association of Developer Companies, in an interview with Wprost.pl. – This will prevent us from having to visit sales offices and developers who will suddenly be able to throw a large number of apartments on the market, which they will want to sell as quickly as possible.
High housing prices
According to Eurostat data, in the first quarter of this year, housing prices in Poland grew the fastest in the European Union. And for now, there is no indication that they will start to fall, although the growth dynamics are starting to slow down a bit. For prices to start to fall, supply must increase. However, for this to happen, it is necessary to eliminate some barriers.
– There is a lot of talk about releasing land owned by the State Treasury and streamlining the administrative side in terms of shortening the period of preparing the documentation necessary to start the building permit process. Imagine that a developer who purchases land, pays for it, can only start the construction process after 1-1.5 years, and in the case of large investments even several years. During this time, these funds are not in use – says Michał Kijewski.
