Developers in Poland have as much as 47 percent. share in the housing sector. In no other large European country is the interest in apartments on the primary market so high. After initiating the “Secure Credit 2%” program sales started, but apartments also began to become more expensive.
According to the latest Eurostat data, developers in Poland have as much as 47 percent of share in the housing sector and it is the largest percentage among large European countries. Only in Cyprus and Malta is the share of new housing in the real estate market higher and approaching 80%. Estonia, Slovakia and Bulgaria were off the podium. In Denmark, new housing accounts for only 1 percent. sold, which means a really marginal importance of developers on the local housing market, informs the PropertyNews industry website.
The website lists several reasons for such a large interest in apartments from the primary market. In recent years, the purchasing power of Poles has increased and the availability of loans has improved. Data from Heritahe Real Investments show that from 2010 to 2021, the median of Poles’ creditworthiness has been steadily increasing, reaching its peak value of over PLN 700,000. PLN for one family. Due to interest rate increases, the interest in loans decreased, because they became very expensive. This has brought the real estate market to a standstill, but the situation is slowly turning around. May was already the 10th month in a row with an increase in this aspect. Currently, a statistical family can afford up to PLN 613,000. zloty. bank loan. This is a result of almost 6 thousand. zlotys better than a month ago.
Property prices are rising
Unfortunately, the increase in creditworthiness is accompanied by an increase in real estate prices. Some market analysts link this fact with the government subsidy program called “Safe Credit 2%”.
The first banks started accepting applications for loans with a subsidy on July 3. During the first five weeks of the “Safe Credit 2%” program, Poles submitted approx. 24,000 applications. conclusions. At that time, banks signed agreements with 1,192 borrowers taking advantage of the government programme. The subsidies will benefit the beneficiaries, but there are more winners: the demand for flats has increased, so sellers can raise prices. And they did not fail to take advantage of this opportunity.
“Browsing through real estate offers on advertising portals, it can be noticed that the percentage of offers in the price range of PLN 700-800 thousand has increased significantly. PLN (i.e. the maximum possible value of funds at the disposal of the borrowers of the Secure Credit 2 percent)” – we read in the latest AMRON-SARFIN report, which is devoted to the impact of the program on the real estate market. “therefore, we can see how the market is adjusting to the new credit conditions,” its authors conclude.