The value of residential loans in Poland fell by 31.9% year-on-year (YoY) to PLN 6.727 billion in November 2024, representing a 9.5% month-on-month (MoM) decrease, according to data from the Credit Information Bureau (BIK). The volume of housing loans granted also declined sharply, with 15,700 loans issued last month, a drop of 35.7% YoY and 10.5% MoM. Despite the November decline, housing loans for the January-November period showed strong growth. The number of loans granted rose by 31.9% YoY to 192,600, while their total value surged by 45.8% YoY to PLN 80.72 billion. “Even without a new support program, housing loans are performing well. November’s lending value of PLN 6.72 billion remains at a solid level. The projected annual loan volume of PLN 81 billion is likely to be exceeded, as we’ve already reached PLN 80.72 billion after 11 months,” said Waldemar Rogowski, Chief Analyst at BIK Group. However, Rogowski noted that this year’s figures include loans from applications submitted in 2023 under the ‘Safe 2% Loan’ program, amounting to PLN 13.6 billion. Without these contributions, the January-November lending total would be PLN 67.12 billion, representing a more modest 21.2% YoY increase. The increasing value of housing loans, despite fewer loans being issued, indicates that borrowers are taking on higher loan amounts. This trend reflects rising property prices in Poland, Rogowski pointed out. “The main driver of the January-November credit growth is improved creditworthiness, allowing borrowers to take out higher loans. This trend aligns with the relatively high housing loan levels in the EU and longer loan repayment periods. It also indicates that higher-income individuals are dominating the market,” Rogowski explained. In November 2024, the average housing loan reached a record PLN 429,200, marking a 6% increase YoY. This figure is the highest recorded in Poland’s history, emphasizing the impact of escalating property prices on the housing loan market. While the November slowdown highlights fluctuations in the housing loan market, strong year-to-date figures suggest robust demand driven by improved creditworthiness and the enduring appeal of real estate investment in Poland. Source: BIK and ISBnews