The “Safe Credit 2 percent” government programme has contributed to a dynamic increase in interest in purchasing apartments in Poland, including among foreigners. Data show that the largest group of foreigners who took advantage of this chance are Ukrainian citizens. What are the reasons for this phenomenon and what are the consequences for the Polish real property market?
Foreigners on the Polish real property market
According to last year's data, the number of apartments purchased by foreigners in Poland has increased significantly. A crucial group among them are Ukrainians who acquired over 7.7,000 properties. The Safe Credit 2 per cent programme provided them with attractive credit terms, which became an additional incentive to purchase.
Ukrainian Preferences: Property Over Lease
According to experts, many Ukrainians took advantage of the chance to turn the flat into its property. The government program offered favorable credit terms, which made paying lower credit instalments more profitable than regular rent.
Effects on the Polish real property market
The increase in interest in apartments by foreigners, especially Ukrainians, influenced the dynamics of the Polish real property market. More and more housing is purchased for investment purposes, not just as a residence. Ukrainians who settle and work in Poland are increasingly buying apartments besides in smaller cities, which may affect the improvement of local real property markets.
Trends in the labour marketplace and purchasing decisions
Changes in the labour market, specified as the spread of distant work or the increase in the number of foreigners employed in Poland, besides affect purchasing decisions. More and more foreigners choose Poland as a permanent residence due to favourable surviving conditions and attractiveness of the labour market.
Consequences for the Polish real property market
Although the number of apartments purchased by foreigners represents a tiny percent of the full transaction on the Polish real property market, their presence is increasingly noticeable. Government programmes specified as Safe Credit 2 percent can attract abroad buyers, which can have both affirmative and negative consequences for local real property markets.
Opening the Polish marketplace to foreigners
The Polish property marketplace is comparatively open to foreigners, especially from countries of the European Union. The condition for the acquisition of real property by foreigners is frequently only to have permanent income in Poland and creditworthiness. This makes Poland an attractive place for foreigners seeking stableness and investment opportunities.
Summary
The interest in housing in Poland by foreigners, especially Ukrainians, is the consequence of favorable credit terms offered by the government's “Safe Credit 2 percent”. This trend can have crucial consequences for the Polish real property market, both in terms of the dynamics of the transaction and the improvement of housing prices. At the same time, the openness of Poland to abroad investments can benefit the improvement of local real property markets and the economy.
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Increasing interest in housing in Poland by Ukrainians
