Polish banks grant record amount of mortgage loans in 2021
The total value of mortgage loans provided by Polish banks in 2021 reached a record of PLN 85.76 billion (EUR 18.31 billion), a property researcher has reported.
However, new mortgage loans dropped by 3.3 percent in the fourth quarter of 2021 compared to the third quarter as the central bank hiked interest rates.
The 2021 result was 41 percent higher compared to the pre-pandemic year of 2019, according to the property researcher Amron.
Last year the Polish banks offered 256,456 new mortgages to consumers, the best result since 2008, Amron said.
However, this year may prove weaker as Poles have to struggle with rising inflation and, consequently, rising interest rates, a new comprehensive tax reform and the war in Ukraine. According to Amron, the total value of new mortgage loans could fall in the range of PLN 65-70 billion (EUR 13.9 - 14.9 billion) while the number of loans could be close to 200,000 in the next few years.
The total mortgage debt in Poland reached PLN 511 billion (EUR 109 billion) as of end-2021.