BIK: Demand Index for Housing Loans was 91.5% in May

The value of BIK Index - Demand for Housing Loans (BIK Index - PKM) amounted to 91.5% in May this year. This means that in May this year, on a business day basis, banks and credit unions sent BIK inquiries about housing loans for an amount higher by 91.5% y / y. Demand for housing loans by value in May this year is in a strong upward trend that started in November 2020.

In May 2021, 47.61 thousand people applied for a housing loan. potential borrowers against 28.68 thousand a year earlier, i.e. increased by 66% y / y. In monthly terms, this result is 6.5% lower. The average value of the requested loan was PLN 320.94 thousand. PLN and is higher by 15.3% y / y.

"The value of the Index was positively influenced mainly by the increase in the average amount of the loan applied for, as well as the increase in the number of applicants compared to May 2020. Again, the value of amounts on loan applications (absolute values) is record-breaking in the whole history. In May, the average amount of the loan applied for is by 42.6 thousand (+ 15.3%) higher than a year ago "- said Waldemar Rogowski, chief analyst of the Credit Information Bureau.

Rogowski emphasized that the increase in the average amount of the requested loan to a record amount of over PLN 321 thousand. PLN, reflects the current situation on the housing market, an increase in the average PUM price and the purchase of larger real estate.

According to the analyst, the increase in real estate prices may be stimulated by an increase in labor costs (strong inflationary pressure on wages) and construction materials.

"In the current market situation, developers will not reduce their margins. The lack of investment alternatives (negative real rates of return on non-inflation-indexed treasury bonds and treasury bonds) results in an even higher interest in real estate as investment assets, resulting in high demand for them, which, given the limited supply translates into higher prices," assessed Rogowski.

At the same time, he emphasized that in the context of the current high overliquidity of the Polish banking sector, the lowest level of loss ratio for housing loans among all loan products and the fact that almost 80% of applicants obtain a loan, a high increase in lending in terms of value should be expected in the coming months and a record high in March 7, PLN 3 billion may soon be exceeded

The BIK Index - PKM is calculated per business day, excluding inquiries about housing loans for amounts exceeding PLN 1 million and inquiries about the same client in the next 90 days. The index methodology was developed by the Credit Information Bureau in cooperation with the Institute of Economic Development of the Warsaw School of Economics. The index is published monthly.

Source: BIK and ISBnews