Poland mortgage market shows high activity despite down payment barriers

The Polish mortgage market remains active, with credit sales reaching 13.54 billion PLN in August. While this represents an 8.2% decrease from the record-breaking July, the monthly value has consistently exceeded 13 billion PLN since March. The average value of a granted mortgage reached a new record of 489,000 PLN, driven by rising property prices and improved household creditworthiness.

Refinancing older, more expensive loans now accounts for nearly one-third of new credit activity. Analysts attribute the market strength to lower financing costs compared to the previous year and rising wages.

Despite high activity, significant barriers to homeownership persist, particularly for younger buyers. Data indicates that 26% of individuals aged 18-35 abandon property purchases due to a lack of a down payment, compared to 17% of those aged 36-55. The requirement to accumulate between 100,000 and 150,000 PLN often necessitates financial assistance from parents.