Polish housing loans increased by 28.3% y / y in August

For a housing loan in August this year. a total of 41,880 potential borrowers, compared to 32,650 a year earlier, which means an increase by 28.3%. However, compared to July this year. there were 2.8% less of them, the Credit Information Bureau (BIK) reported. Average value of the requested loan in August this year was PLN 330,200 and was higher by 13.9% y / y.

The value of BIK Index - Demand for Housing Loans (BIK Index - PKM) amounted to 39.4% in August this year. This means that in August this year, as per business day, banks and credit unions sent BIK inquiries about housing loans for an amount higher by 39.4% y / y.

"The value of the Index was positively influenced mainly by the increase in the average amount of the requested housing loan, which once again achieved a historic record. In August 2021, the average amount of the requested loan was PLN 40,260 higher than a year ago. The value of the Index was positively influenced by There was also an increase in the number of applicants Compared to August 2020, 9,230 more people applied for a housing loan than in August last year. It should be noted, however, that there was one more working day in August 2021. Analyzing the current value of the Index , it should be noted that in August last year we still had a negative (-3.2%) pandemic reading of the Index. The number of people applying for a loan at that time was 6.9% lower than in August 2019," said the chief analyst of the Credit Information Bureau, Waldemar Rogowski.

Compared to December 2020, the average amount of the requested loan increased by PLN 22,700 (7.4%). The increase in the average amount of the loan applied for is due to rising real estate prices.

"The behavior of the index showing the relationship between the average net salary and the price per square meter of new residential space will be important for a further increase in real estate prices. Since 2018, this relationship has been decreasing. This is one of the factors that may limit demand. The second factor may be the change approach to calculating creditworthiness for loans over 25 years," added the analyst of BIK.

In August this year the demand for housing loans in terms of value continued to be in a strong upward trend that started in December 2020.

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