The year 2024 has introduced substantial shifts in Poland’s credit market. Easing credit policies in selected segments, declining demand for housing loans after the expiration of the “Safe 2% Loan” program, and increased activity in the deposit market are reshaping the financial realities of Polish households, according to the latest InfoKredyt report by the Polish Bank Association.
At the end of September 2024, the total value of mortgage loans in Poland reached PLN 467.6 billion, with housing loans issued in Polish złoty accounting for PLN 433.6 billion—a 10.3% year-on-year increase. Conversely, foreign currency housing loans fell by 37.8% year-on-year to PLN 34 billion. Consumer credit also grew by 7.6% year-on-year, totaling PLN 202.1 billion. The average value of housing loans applied for in September 2024 was PLN 444,740.
The AMRON-SARFiN report confirms the increase in the average value of newly granted mortgage loans in Poland. In Q3 2024, the average mortgage loan value rose to PLN 421,700 compared to PLN 417,400 during the same period in 2023. Real estate prices increased in many major Polish cities, with Kraków seeing a 5.03% rise to an average of PLN 13,676 per square meter. Other cities such as Poznań (3%), Gdańsk (2.48%), Wrocław (2.48%), and Warsaw (1.89%) also reported price increases, while Łódź experienced a slight decrease of 0.45%, with an average price of PLN 7,751 per square meter.
“The ‘Safe 2% Loan’ program was highly popular in 2024. Thanks to government guarantees and support for down payments, the program helped young families and individuals under 45 purchase their first homes. A total of 123,000 clients benefited from the program, with loans totaling PLN 36.5 billion,” says Dr. Przemysław Barbrich, Director of the Communication and PR Team at the Polish Bank Association.
The expiration of the “Safe 2% Loan” program has led to a decrease in demand for housing loans, highlighting the impact of government support on borrowing decisions. Data from the Credit Information Bureau (BIK) shows that 28,510 borrowers applied for housing loans in September 2024, compared to 36,570 a year earlier—a 22% decline. However, there was an 8% increase in applications compared to August 2024, possibly due to relaxed lending criteria for households in Q3 2024.
At the end of Q3 2024, household debt to the banking sector from loans and credits stood at PLN 796.11 billion, marking a PLN 11.01 billion (1.4%) increase year-on-year. Consumer loans were primarily taken for home renovations (84%), followed by debt repayment (52%), current needs (52%), car purchases (61%), and home furnishings (48%). According to a November survey by Minds & Roses cited in the report, 61% of bankers expect a significant increase in demand for consumer loans following the initiation of interest rate cuts by the Monetary Policy Council.
Poland ranks low among eurozone countries in terms of household loans relative to GDP, with a ratio of 20.3%. Only Greece (18.2%) and Lithuania (8.6%) rank lower, while Finland (95%), Spain (82.8%), and Luxembourg (79.1%) lead the list.
Credit Holidays and New Support Measures
Since June 1, 2024, new rules for credit holidays have been in place. These include income criteria and limits on loan value, allowing credit holidays only for złoty-denominated mortgage loans up to PLN 1.2 million. Between 2022 and 2024, credit holidays cost the banking sector approximately PLN 15.5 billion, reducing budget revenues from CIT by around PLN 5 billion. In 2022 alone, credit holidays cut bank earnings by PLN 7.8 billion.
“An additional support measure in 2024 is an extra-statutory moratorium developed by the banking sector under the aegis of the Polish Bank Association and the National Association of Cooperative Banks (KZBS). Following the September floods that caused significant material losses in southwestern Poland, customers affected by the disaster were granted the option to defer loan payments,” adds Dr. Przemysław Barbrich.
Borrowers meeting specific criteria must submit their applications in advance to ensure they are processed by December 31, 2024.
About the Report
InfoKredyt is a publication prepared by the Polish Bank Association, providing a concise presentation and analysis of key trends and data related to the credit market in Poland. The report uses statistical data from sources such as the Bank Monitor, Credit Information Bureau, Financial Supervision Authority, Central Statistical Office, European Central Bank, and National Bank of Poland.
Source: ManagerPlus
