Find out what’s changing in the real estate market in 2024. In this article, we discuss the new tax, the end of the 2% mortgage and its impact, as well as trends and forecasts for property prices and rental rates.
Tax on the bulk purchase of housing
According to the regulations, which became effective on 1 January 2024, an investor will pay a 6 per cent tax (Transfer Tax) on the acquisition of at least the sixth flat in buildings located on a single piece of land.
By default, this tax is 2 per cent and is only paid when buying a property on the secondary market. When buying a property from a developer, you do not pay the tax on civil law transactions, but it is necessary to pay VAT (already included in the price of the property). You can find the PCC calculator on our blog post formalities after buying real estate.
It is worth remembering that at the end of August last year, the exemption from transfer tax (PCC) on the purchase of a first flat on the secondary market came into force.
End of the ‘2 per cent safe mortgage’ programme
8 January 2024 marks the end of the ‘Safe Credit 2 per cent’ programme in its current format. The Ministry of Development has already announced its intention to continue the programme under the name of ‘Housing for Start’, but in a significantly changed form. Income or social restrictions are to be imposed on the programme.
The end of the year brought much excitement about the programme coming to an end. More loan applications were made under the programme in December than had been the case in July, when ‘Safe Mortgage’ was launched. There was concern among consumers that there would be a shortage of either credit or housing.
What's next for housing prices?
There is still time to summarise the effects of the Safe Mortgage, but we can already speak of the first conclusions. In the largest cities, up to more than 20 per cent annual increases in housing prices have been observed.
We have not seen such large increases in the market since 2006-2007. It has been a very difficult time for borrowers who did not qualify for Safe Mortgage or have cash.
Further decisions of the Monetary Policy Council will have an impact on housing prices and the creditworthiness of buyers. For the time being, we expect the interest rate to stabilise at the current level at least until March this year, as assured by NBP President Adam Glapiński at a recent press conference.
What will the rental rates be in 2024?
A large group of people renting flats in Poland are foreigners. This group has declined in recent months by vacating some flats.
As a result, rental rates have ceased to rise and some markets have seen rent falls. The record-breaker is Łódź, where price reductions have reached up to 10 per cent.
Summary - what changes to the real estate market in 2024?
Change is inevitable, and some of it can have a big impact on your housing or investment decisions.
The new tax, the end of the 2% mortgage and its replacement by a new credit scheme, as well as changing trends and market conditions, will affect property prices and rental rates.
Are you planning to sell your property in 2024 or rent it out? Or are you looking for a property for sale or to rent? Our dedicated experts are there for you to answer your questions, provide personalised advice and turn your aspirations into concrete plans. Get in touch with us and we’ll help you realise your 2024 housing plans.
