Loan and Credit program limits are increasing

Price limits in the Flat for Young program in most locations have increased by more than 10% since the beginning of the program. Among the most important capitals in the primary market of the voivodship, limits fell only in two cities. This means an increase in the availability of housing, increased supply, but may also result in an increase in property prices.

Almost two years of the program is a good time to summarize the changes in the limits in the program, especially since the current limits, with the exception of the Pomeranian Voivodeship, will be in force until the end of March next year.

In addition to the criteria verifying the buyer

The possibility of using the Flat for the Young program is also determined by property price limits. In each voivodship 3 areas have been separated – the capital of the voivodship, communes neighboring the capital and other communes in the voivodship.

For each of these locations, maximum price limits are set for 1 square meter of purchased property. Theoretically, the limits are set at the beginning of each quarter, but in practice, due to the basis for calculating the limits, the relevant indicators published by the relevant voivods change every 6 months in each location.

One of the voivodships in which limits have dropped in all locations since the beginning of Loan and Credit are the Łódź and Pomeranian voivodships. There, the decreases are extremely large, amounting to over 10%. 

Important provincial cities

Important provincial cities

When analyzing the limits on the primary market, it is worth paying special attention to voivodship cities. Due to the high concentration of the development market in these cities, Loan and Credit for the primary market is the most popular. Of the 18 cities analyzed (headquarters of the voivode or voivodship parliament), limits have only dropped in Łódź and Gdańsk since the beginning of 2014.

However, these are extremely large decreases of 13.94% and 7.88% respectively. However, despite such large changes, the supply of apartments eligible for Loan and Credit is still high in these cities. In other locations, price limits have increased, although the scale of variation in changes is very large.

As a result, the capital of Warmia and Mazury is the third city with the highest limits after Warsaw and Poznań. When analyzing changes, it is also worth paying attention to the largest markets. In Warsaw, limits increased by 9.43%, in Wrocław by 9.84%, and in Poznań by 5.71%. Despite the 7.20% increase in limits in Krakow, these values ​​are still so low that finding a property that meets the program criteria in the capital of Lesser Poland remains troublesome.

Increases in regions

Increases in regions

In the context of the Loan and Credit program for the primary market, it is also worth analyzing the limits for communes neighboring voivodships. They increased most in the Lubelskie (15.40%) and Świętokrzyskie (11.35%) voivodships. Noteworthy are also changes in Greater Poland (8.71%) or Mazowieckie (7.62%).

In these locations, many investments are being built in areas adjacent to the capital of the voivodship, and raising the limits will certainly increase the availability of apartments in Loan and Credit. Very significant increases are also made in communes that are not adjacent to voivodship capitals: in Lubelskie, the limits increased by 20.43%, Podkarpackie by 14.58%, Podlasie by 12.93% and Świętokrzyskie by 12.15%.

However, large increases in these locations are unlikely to bring any change in Loan and Credit for the primary market. There are very few or even cities being built in these places where we will not find any development investments.

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