BIK The Demand Index for Housing Loans rose to a record 94.3% in April

by   CIJ News iDesk III
2021-05-11   08:17

BIK Index - Demand for Housing Loans (BIK Index - PKM), which informs about the annual dynamics of the value of requested housing loans, amounted to 94.3% in April and was a record reading in the entire history of the Index publication . This means that in April this year, as per business day, banks and credit unions sent BIK inquiries about housing loans for an amount higher by 94.3% compared to April last year.

In April 2021, a total of 50.92 thousand people applied for a housing loan. potential borrowers, compared to 27.81 thousand a year earlier - an increase of + 83.1%. However, compared to March 2021, the number of applicants decreased by 9.2%. The average amount of the requested housing loan in April this year amounted to PLN 320.61 thousand and was 6.1% higher than in April 2020.

"The value of the Index was positively influenced by both the increase in the average amount of the loan applied for and, above all, the very large increase in the number of applicants compared to April 2020. The record value in the entire history is the value of the amounts on loan applications (absolute values). that in April 2020 there was, on the one hand, the greatest uncertainty about the course and consequences of the pandemic, as well as the measure of the lockdown itself.The economic security of households seemed to be at risk. housing for 20-30 years. In April 2020, there were only 27.81 thousand applicants, which was the fifth lowest level since 2007. " - according to the chief analyst of the Credit Information Bureau, Waldemar Rogowski.

In April this year. demand for housing loans is still in an upward trend that started in November 2020.

"The increase in the average amount of the loan applied for reflects the current situation on the housing market, the increase in the average PUM price and the purchase of larger real estate. In addition, the increase in the number of vaccinated people causes the optimism about the future among Poles. Increase in real estate prices. Increase in real estate prices may additionally be stimulated by rising labor costs. Moreover, the necessity to make contributions to the guarantee fund for developers (2%) will also lead to higher prices in the future. All this contributes to an even higher interest in real estate as investment assets, causing a high demand for them, which, given the limited supply, translates into an increase in prices "- pointed out Rogowski.

At the same time, he emphasized that the Index describes only the demand side of the housing loan market. The value of lending, on the other hand, is determined by banks' lending policy and their willingness to accept risk.

"In my opinion, in the context of the current high overliquidity of the Polish banking sector, the lowest loss ratio among all credit products, which is characterized by housing loans, and the fact that the level of approval of loan applications is at the level of approx. in terms of value and the March record PLN 7.3 billion may soon be exceeded "- summed up the expert.

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 Index and ISBnews