Will Loan Subsidies Raise Housing Prices? “The Trauma of a 2 Percent Loan”
– The situation where demand meets supply is no longer the case. Now we are dealing with the opposite situation. Supply is definitely higher, which has caused a slowdown in prices – Marek Wielgo, an expert from the Rynek Pierwotny portal, tells Wprost, predicting that the new loan subsidy program will not cause a sudden increase in prices.
Housing prices, although still growing, have started to slow down in the last quarter. According to an expert from the Rynek Pierwotny portal, there is no risk of a sharp increase in prices, even if the parliament passes another program of subsidizing loans.
A sharp increase in prices
Concerns about a wave of price increases on the real estate market after the possible introduction of a new support instrument for borrowers, similar to last year’s 2% loan, seem to be justified. This program led to a huge increase in demand for apartments and, as a result, a price jump of even several dozen percent.
– The situation where demand meets supply is no longer the case. Now we are dealing with the opposite situation. Supply is definitely higher, which has caused a slowdown in prices – says Marek Wielgo, an expert from the Rynek Pierwotny portal, in an interview with Wprost.
The expert also points out that in the last year developers have started to invest in cheaper, more easily accessible apartments, which has significantly influenced the supply of real estate most often purchased on credit.
0% loan subject to change
The Civic Platform’s 0% credit subsidy program was one of the most important promises in the election campaign. However, everything indicates that it will not come into effect in its planned form, because the coalition parties — Trzecia Droga and Lewica — do not agree to it.
We are to learn the details of the new housing policy in the coming week. 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 on top of that they result in an increase in property prices.