The value of housing loans in Poland surged by 21.2% year-on-year (YoY) in August 2024, reaching PLN 6.26 billion, according to data from the Credit Information Bureau (BIK). However, the value saw an 11.9% decrease month-on-month (MoM). In terms of volume, 14,800 housing loans were granted last month, marking a 10.3% YoY increase, though this was down by 12.2% MoM.
Between January and August 2024, the number of housing loans issued rose by 80.2% YoY to 143,700. In terms of value, there was an impressive 108.5% jump YoY, amounting to PLN 59.95 billion.
“Despite the absence of a borrower support program, demand for housing loans remains robust. Since the beginning of the year, the number of loans granted has grown by 80.2%, and their value has surged by 108.5% compared to the same period in 2023,” commented Waldemar Rogowski, Chief Analyst at BIK Group. He explained that three key factors have driven this strong growth.
Firstly, the impact of last year’s loan applications under the “Safe 2% Loan” program, which accounts for PLN 13.6 billion of the total, still plays a significant role in this year’s figures. Without these loans, the credit value for January-August 2024 would have been PLN 46.4 billion, representing a 61% increase compared to last year.
Secondly, Rogowski pointed to the low base effect from 2023, when high interest rates and the anticipation of the borrower support program stifled lending activity in the first half of the year.
Lastly, he noted that despite the lack of a current support program, borrower activity has significantly increased compared to last year. “The rise in the value of housing loans more than in their number indicates that borrowers are taking out larger loans, driven by higher property prices in a persistently expensive market,” Rogowski added.
In August 2024, the average housing loan amount hit a record high of PLN 421,997, up by 9.8% from the previous year. Additionally, by the end of August, around 189,000 individuals had taken advantage of new credit holiday provisions introduced on 1 June 2024, covering 112,000 housing loans totalling PLN 33.1 billion.
Source: BIK and ISBnews
