While work on the government’s program to support the purchase of apartments is still underway in parliament, portals with apartment listings are recording a several dozen percent increase in traffic, reports Business Insider Polska. In March, the number of inquiries for apartments relative to December was 40% higher, according to real estate expert at Morizon, Marcin Drogomirecki.
“Throughout 2022, the situation in the housing market was deteriorating. Now we are seeing a clear rebound,” – Drogomirecki said in an interview with Business Insider.
He pointed out that the rebound is coming from a fairly low ceiling, but there is nevertheless a significant increase in traffic.
“The activity of those looking for an apartment is increasing, they are browsing offers more intensively and making more inquiries. This is due to several factors. First of all, people are seeing some positive changes after a long period of rising inflation, rising loan installments and declining creditworthiness.” – The expert added.
He pointed out that those customers who expect rising housing prices due to the 2% loans introduced by the government have also entered the market. “It’s a bit of a game changer,” he said. – he stated.
According to Drogomirecki, there may be about 20,000-30,000 beneficiaries of the program at first, but not all of them will buy apartments from developers. Some will build houses.
“Let’s assume that there will be 15 thousand developer transactions thanks to government loan subsidies. This is a drop in the ocean,” – The expert assessed.
On Friday, the Sejm passed a law on state aid to housing savings, providing for the introduction of 2% loans and housing accounts for people under 45 who do not own their own apartment. The bill will now go to the Senate, whose next session is scheduled for May 10-11.
A loan with a fixed interest rate of 2% for the purchase of a first apartment is to be eligible for those under the age of 45. The loan is to reach a maximum of PLN 500,000 for a single-person household and PLN 600,000 for multi-person households (married couples, or a parent with a child). The maximum own contribution can amount to PLN 200 thousand.
The program does not include any limits when it comes to the price of 1 sqm of housing, nor restrictions on the location or the limit on the square footage of apartments and houses. Both primary and secondary market apartments are to be eligible for the program. The subsidy from the state is to cover a period of 10 years.
Source: Morizon, Business Insider and ISBnews
Photo: Bogusławskiego, Morison
