Polish Government unveils new housing program

The Ministry of Development and Technology (MRiT) has introduced a new housing program aimed at addressing Poland’s housing challenges. While the initiative has been welcomed as a positive move, critical details remain to be finalized in draft laws, according to Katarzyna Pełczyńska-Nałęcz, Minister of Funds and Regional Policy and First Vice-President of Poland 2050.

Key Elements of the Housing Program

The newly announced program, known as “Key-to-Housing,” is based on three main pillars: municipal housing, social housing, and property ownership under the “First Keys” initiative. The plan includes a significant financial commitment of PLN 2.5 billion to support social housing, with the aim of launching investments immediately to meet the growing demand.

“A strong YES for social housing and ensuring that PLN 2.5 billion is allocated – a big plus! If we want housing to be available in 2025, investments must start today. Local governments are ready, and people are waiting. We need to act fast,” Pełczyńska-Nałęcz emphasized.

One innovative aspect of the program is the expansion of housing cooperatives, TBS (Social Housing Associations), and SIM-ymes to construct apartments not only for rent but also for sale. This measure is expected to increase the housing supply while ensuring that no state-funded loans are directed towards private developers.

Concerns Over Secondary Market Loan Subsidies

While the program has received praise for its social housing and cooperative components, there are concerns over the plan’s reliance on subsidizing loans for secondary market purchases. Pełczyńska-Nałęcz cautioned that allowing local politicians to determine which apartments qualify for subsidies could create conflicts of interest and increase pressure from developer lobbies.

Restrictions and Eligibility Criteria

The “First Keys” program will be available exclusively to individuals who have never owned an apartment or house. Applicants must meet legal income criteria and purchase properties from the secondary market, excluding new developments. Further conditions include:

The property must have been in service for at least five years.

The current owner must have possessed it for at least three years.

A price cap of PLN 10,000 per square meter applies, with an increased limit of PLN 11,000 per square meter in major cities such as Warsaw, Gdańsk, Kraków, Poznań, and Wrocław.

Municipalities may set their own price limits based on local conditions.

Future Developments and Legislative Work

Pełczyńska-Nałęcz reiterated that while the strategy is a move in the right direction, the implementation details will be crucial. “The details are super important and will only be clear in the draft laws. We will work on them constructively and reliably,” she stated in a social media post on Platform X.

With a strong emphasis on social housing and cooperative ownership models, the Polish government aims to address housing affordability while preventing speculative price inflation. The coming months will determine how the legislative process shapes the final framework of this ambitious housing initiative.

Source: Inwestycje.pl