Mortgage interest rate in Poland 2013-2021
Demand for mortgage loans in Poland
Despite the tightening of credit policy by banks, the demand for mortgage loans is not decreasing. The residential market has also seen increases both in sales and in the construction of new premises. The increase in salaries combined with the decrease in the mortgage loan cost results that Poles have no problems of buying apartments despite high prices. Higher wages also affect their creditworthiness, which is essential when applying for a mortgage. The value of housing loans amounted to a record 442.7 billion zloty in 2019. Despite a decrease in 2017, the value of debt in 2019 increased by 6.6 percent compared to the previous year. The increase in wealth has also been reflected in the average value of mortgages. In 2021, Bank Millennium granted the largest number of mortgages to Poles, although Bank PKO BP was the leader in terms of value.
Demand for housing in Poland
Despite a growing number of flats, the prices are not falling, but on the contrary, they are continually rising. An increase in prices was recorded in every major city. The annual rise in prices in many cities went up even by nearly 20 percent. The most significant price increase on the primary market was recorded in Warsaw, while on the secondary market Szczecin prevailed. Nevertheless, Poles pay the most for a flat in the Polish capital Warsaw. In March 2022, the price per square meter of an apartment on the secondary market exceeded 13.7 thousand zloty, while the price per square meter on the primary market was close to 13.4 thousand zloty. However, the coronavirus (COVID-19) outbreak in Poland in March 2020 affected the investment plans on the real estate market. Both individual customers and developers recorded a significant drop in the number of construction projects commenced during this period.