Credit 2%, which is how PiS subsidizes developers

politiks.pl 1 year ago

Credit 2%, which is how PiS subsidizes developers

The Polish housing marketplace has been constantly warmed up over the past fewer years. Initially, the mass-print of money, and consequently inflation, then millions of refugees and labour migrants. All of this in fresh years has been the main origin that has been a growth origin in the housing marketplace in Poland, constantly raising rental and acquisition prices. erstwhile request began to weaken at the turn of 2023 and developers begged the government for help, a 2% debt appeared on the horizon as a flagship pillar of the party's run for the next election. How did it work on the housing market, and why did the government decide to introduce it?

Reasons

According to the NBP report, the transaction prices of housing on the secondary marketplace at the turn of the second 4th of 2022 and The first 4th of 2023 fell by about 8%. This was the first signal previously in Poland to indicate that the real property marketplace is “cooling”. late specified declines occurred before 2013, erstwhile this stagnation was caused by the 2008 global crisis (the alleged Subprime crisis). As developers and contractors began to announcement what was happening, they wrote to the government complaining of an unimaginable bad situation and a possible increase in unemployment. “The Polish real property marketplace is on the verge of a crisis not recorded since 2008. Measures should be put in place urgently to reduce the declines in residential investment. The deficiency of government intervention can consequence in 100 000 employees of companies straight linked to the construction of fresh buildings, as well as in housing-related industries.“ We read. Interestingly, 5 recommendations were given in the paper that the group sent to the government:

– Restoration of building relief for rental

– Helping young families to get their first apartment, for example, by restoring
Family program on Your or introduction of fixed low rate loans
percent

– Support for thermo-modernisation projects in the existing housing resource

– Support for fresh low and zero energy construction

– simplification of KNF's 5% buffer advice for fixed or periodic fixed rate loans

"Crash" visible in the second 4th of 2022 on the secondary marketplace at transaction prices (source zometer.pl)

Government decisions

As you can see for now 3 of the 5 given sub-sections have been implemented, the first 1 is to soften the advice on February 7, 2023, then “Helping young families to get their first apartment, for example, by restoring Family program on Your or introduction of fixed low rate loans percent” introduced as a 2% debt presented on 8 March 2023 by Waldemar Buda and yet “Support for thermo-modernisation projects in the existing housing resource“as a task “Friendly Settlement” proposed by Prime Minister Mateusz Morawiecki on September 4, 2023.

Today we are launching a programme offensive, which is to present fresh specifics for another term.
1⃣ circumstantial PiS: a large program “Friendly Settlement” - modernization and revitalization of settlements and blocks from the alleged large plate #PiS Concretes pic.twitter.com/xo9Ss3KN6r

— Law and Justice (@pisorgpl) September 4, 2023

Effects

The announcement of the program's credit 2% and its accompanying housing account caused panic among buyers and euphoria among sellers. Since its announcement in March 2023, there has been a clear increase in the prices of the period to the month. erstwhile the program started, the supply of premises decreased significantly, and developers were flooded with phones. The proposal is presently being examined for a long time due to the fact that banks are not keeping up with their processing. This leads to the fact that young Poles are actually getting more and more hard to scope their own place and this leads to further increases in inflation.

A visible almost linear increase in bid prices on the example of Warsaw (source zometer.pl)

Voting on the Act (update)

In the vote, 386 Members supported the bill, against 48, mainly from the Confederation, Poland 2050, Left and Freedomists. It should be noted that the majority of the Members of the Law and Justice Council both supported this project.