Credit subsidies. Minister wants to present the project after the holidays

Minister of Development Krzysztof Paszyk announced that after the holidays he will present a housing project that will consist of various elements, including a credit program and support for social housing. The idea of ​​subsidizing loans is opposed by the Left and Poland 2050, which believe it will increase property prices – exactly as the previous program did.

Housing project of the Ministry of Development

Paszyk noted that the proposal for the start-up loan will be modified and subject to public consultation. “I think there will be many solutions and proposals close to the marshal’s there (in the project – ed.) and a new space for discussion will appear when it comes to supporting the solution,” Paszyk stated.

The Minister stressed that the supply of land for construction should be increased, because its insufficient quantity is one of the factors driving up the prices of new apartments.

– We are not only focusing on the credit program. A very important pillar of this package of solutions will concern social housing. It will be a balanced offer for all whose housing conditions deserve improvement – ​​assured Paszyk.

Start-up loan and developers’ plans

A start-up loan, or a subsidy for a loan, was promised in the election campaign, but later the idea disappeared somewhere and it seemed that in the face of criticism the Ministry of Development withdrew from it. However, no: it was announced that work was in progress. When this was announced, the Rynek Pierwotny portal asked representatives of the largest development companies in Poland how the proposal of subsidies could affect the real estate market.

Tomasz Kaleta, Managing Director of Sales and Marketing at Develia, believes that due to the postponement of the start date of the “Kredyt na start” program to 2025, we can expect the housing market to stabilize in the coming months.

– In recent years, the market has been characterized by large fluctuations, initially caused by the pandemic, then the war, the introduction of the “Safe Credit 2%” program, and most recently the confusion surrounding its successor, “Start Credit,” the launch of which has already been postponed several times and the assumptions changed. There was even talk of abandoning this idea. Taking this context into account, we do not develop our offer based on announced government programs. Moreover, it takes an average of 2-3 years to prepare a project before it goes on sale, so it is difficult to plan investments for a specific program – he said.

Good sales despite the lack of subsidies

Zbigniew Juroszek, President of the Management Board of ATAL, pointed out that since the beginning of this year, i.e. in the period without the buyer support program, his company has been recording stable results.

– This confirms our position that the government program in its currently proposed form will not be a decisive factor for contracting in our case. What would definitely affect the demand and supply situation is a reduction in interest rates, and as a result, a reduction in the cost of mortgage loans (customers) and investment loans (developers), he said.

CEO of a developer: there is no room to raise prices

Jarosław Szanajca, president of Dom Development, one of the largest development companies in the country, shared an interesting observation in an interview with the industry service PAP. In his opinion, there is no possibility of raising prices significantly now.

– The year started very well. In the first months, demand and sales were high. Now we have a slowdown. It is not entirely clear what causes it. The market is certainly waiting to see what will happen with the announced Mieszkanie na start program – admitted Szanajca.

He argues that this slowdown does not pose a problem.

– Prices have rather stopped rising. With lower demand and sales volumes declared by companies, there is no room to raise prices, but we expected that – assessed Szanajca.

Real estate. Less interest in buying apartments

Could the words of the president of a leading developer company herald the expected price drop by future buyers? Experts from Bank Pekao wrote in an analysis obtained by money.pl journalists that further increases in apartment prices should be expected in the coming quarters. The report indicates that the increases are due to, among other things, the growing real incomes of Poles, aid programs that lower effective interest rates for the most vulnerable households, significant potential for improving lending, and still high structural housing needs resulting from overcrowding.

At the same time, data that reaches us from various sources confirms that developers are having an increasingly difficult time on the market. BIK reported that 16.4 thousand mortgage loans were launched in April – 11.4 percent less than a month earlier. Moreover, this was the third month of declines in the number of loans launched for the purchase of real estate.

The number of apartments sold is also gradually decreasing. According to data from Otodom Analytics, May was the worst month for developers since January 2023. Only 3.2 thousand apartments were sold on the primary market. This is 20 percent less than in the same period last year.