Developers predict what will happen to real estate prices in the coming months

Developers predict what will happen to real estate prices in the coming months

The Safe 2% Credit program has led to an increase in real estate prices in some cities by over 20%. in just a year. It has been impossible to submit applications for subsidies for a month and a half, but another government program is to be launched in a few months. This is certainly a windfall for developers who sold very few apartments in the previous two years, and in July 2023 they literally came back to life.

A new government loan subsidy program is scheduled to launch in mid-year. The concept of the starter apartment is similar to the previous 2% Safe Credit program: subsidies to loan installments will be available for 10 years from the signing of the loan agreement. This program is intended to enable the purchase of an apartment or house, the construction of a house and the purchase of a housing contribution in a cooperative or participation in SIM/TBS.

Starter apartment – ​​what do we know about the program?

The age limit for singles in the program will be 35 years. Other farms will not have such a limit. However, there will be income limits, the thresholds are to be:

  • 10 thousand PLN gross for a single room

  • 18 thousand for 2 persons

  • 23 thousand for 3 people

  • 28 thousand for 4 people

  • 33 thousand for 5 people.

The amount of subsidies for loans will depend on the size of the household. The largest subsidies will go to large families, who can even count on a loan with an interest rate of 0%. Financing mortgage loans translates into lower loan interest rates in the following ranges:

  • 1.5 percent for a 1- or 2-person household,

  • 1 percent for a 3-person household,

  • 0.5 percent for a 4-person household,

  • 0 percent for a household of 5 or more.

No start date has been given for Starter Apartments

The previous version of the government program led to a significant increase in real estate prices. After two years of market stagnation, when developers limited the construction of new residential buildings, suddenly there were tens of thousands of customers interested in making a purchase as soon as possible. Both sellers on the primary and secondary markets could risk raising prices by several percent – and they still found buyers.

At the end of last year, the program was phased out because the money for subsidies ran out. The previous government definitely did not expect that the 2% Safe Loan would be so popular and allocated far too little money for subsidies.

Anyone who has not managed to submit an application within 6 months but wants to benefit from the subsidy must be patient. The only question is whether “throwing” subsidies will not lead to another wave of property price increases. The real estate website asked developers whether they expect that the entry into force of the “Apartment to start” program will once again increase prices per square meter.

Developers on forecast real estate prices

Andrzej Gutowski, vice-president and director of the sales department of Ronson Development, admitted that the current interest in apartments is lower than at the end of 2023. -Some potential buyers are holding off on purchasing decisions, waiting for a possible successor to the Safe Credit 2% program. It is worth noting, however, that the housing market is still functioning, offering opportunities also for those clients who cannot take advantage of preferential financing programs, he said.

Cezary Grabowski, sales and marketing director of Bouygues Immoblier Polska, noted that people using BK2 were primarily interested in apartments up to PLN 700,000. PLN, which is why currently there are the fewest 2- and 3-room apartments in this price range with compact layouts.

– In the current situation on the housing market, customers do not wait too long to sign a contract, because they see that the offer of apartments on the primary market is shrinking every day. People who decide to buy an apartment often finalize the transaction quickly. They know that an extended waiting period may result in the number of available apartments decreasing even further, he added.

Tomasz Kaleta, director of the sales department of Develia SA, admitted that after banks stopped accepting applications for Safe Loan 2%. questions began to appear about the offer under the new support program. – However, until the details of this solution are known, we will not be able to talk about them with customers. We expect that buyers, taught by the experience of recent months, will not wait with their purchase decision. Many people are afraid of even greater exhaustion of the offer and further price increases, which in 2023 increased by an average of 18% in large Polish cities. – he said.

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