Jacek Furga: Housing loan market poised for record-breaking year

The Polish housing loan market is on track for a record year, with the value of loans potentially reaching PLN 85 billion in 2024, according to Jacek Furga, President of AMRON. This marks a significant increase from PLN 65.3 billion recorded in the first quarter of the year. The total number of loans granted is expected to surpass 205,000, up from nearly 156,000 in the first three quarters.

“Results for the third quarter show stabilization, with a modest 1% rise in the number of loans granted compared to the previous quarter,” Furga said during a teleconference. “However, compared to the same period in 2023, which saw the introduction of the ‘Safe Credit 2%’ program, this represents a 12.6% increase, demonstrating that the market can thrive even without government support.”

Furga estimates the year will close with approximately 205,000 loans issued, comparable to figures from 2020, a pandemic year. “This is a significant leap from the crisis year of 2022, which recorded only 126,000 loans,” he noted.

Q3 Loan Trends and Market Dynamics

According to the AMRON-SARFiN report, banks granted 45,897 new housing loans in the third quarter of 2024, reflecting a 12.63% quarter-on-quarter rise and a modest 1.02% increase year-on-year.

The total value of loans granted in Q3 reached PLN 19.32 billion, up by 1.03% quarter-on-quarter and a remarkable 22.92% year-on-year. This growth was driven by a steady increase in the average loan value, which has been climbing consistently over the past several quarters.

“The average loan value continues to stabilize, with a slight 1% quarter-on-quarter increase and a 22% rise year-on-year. This reflects the sustained demand for housing loans in Poland,” Furga explained.

2024 Outlook: A Record in Sight

Furga expressed optimism about the year-end results. “We anticipate at least PLN 83-84 billion in new loans, but there is a strong possibility of surpassing the previous record of PLN 85 billion set in 2021,” he said.

The market’s impressive performance signals a robust recovery and growing confidence among borrowers, even as the sector faces challenges like fluctuating interest rates and economic uncertainty.

Source: AMRON and ISBnews