Surge in Young Applicants for Housing Loans in Serbia
Over 1,500 requests for housing loans from young people submitted, with first contracts set to be signed next week.
A significant interest has been noted among young people in Serbia regarding housing loans, with over 1,500 requests submitted under a new initiative expected to facilitate home ownership.
The first contracts are set to be signed next Monday, as the government aims to support young buyers in the housing market.
The program, which has gained traction with institutions such as Poštanska štedionica leading the initiative, has seen NLB Bank join as well.
According to insights from real estate professionals, young applicants are responding positively to the prospect of obtaining their first homes with minimal down payments and low interest rates.
Davorka Tasić, a real estate agency owner, commented on the current market dynamics, indicating that young buyers are focusing less on prime locations and more on properties that meet the eligibility criteria for the scheme, including registered ownership and the willingness of sellers to wait for the loan approval process to conclude.
In the context of government subsidies for properties valued up to €100,000, interest is particularly concentrated on one-bedroom apartments in areas such as Mirijevo and Karaburma, which are more affordable options outside the central zones of the city.
The program, established by the Law on Housing Loans for Young People passed on March 6, 2023, allows applicants aged between 20 and 36 years to apply.
Criteria include citizenship and residency in Serbia, along with the stipulation that applicants must not already own residential property.
This initiative is open to a wide range of individuals, including agriculturalists, entrepreneurs, self-employed artists, and both employed and unemployed individuals, provided they have family member guarantees.
Economic experts have emphasized the significance of the low interest rates and minimal down payments in making these loans viable for young buyers.
Veljko Miljušković, an economist, stated that the program provides a stable repayment structure in its initial six years, transitioning thereafter to a more flexible system based on a formula involving the three- or six-month Euribor plus an additional 2% interest.
As the scheme progresses, the demand for affordable housing solutions is expected to shape the dynamics of the real estate market, reflecting a broader trend among young people in seeking greater independence through home ownership opportunities.
The first contracts are set to be signed next Monday, as the government aims to support young buyers in the housing market.
The program, which has gained traction with institutions such as Poštanska štedionica leading the initiative, has seen NLB Bank join as well.
According to insights from real estate professionals, young applicants are responding positively to the prospect of obtaining their first homes with minimal down payments and low interest rates.
Davorka Tasić, a real estate agency owner, commented on the current market dynamics, indicating that young buyers are focusing less on prime locations and more on properties that meet the eligibility criteria for the scheme, including registered ownership and the willingness of sellers to wait for the loan approval process to conclude.
In the context of government subsidies for properties valued up to €100,000, interest is particularly concentrated on one-bedroom apartments in areas such as Mirijevo and Karaburma, which are more affordable options outside the central zones of the city.
The program, established by the Law on Housing Loans for Young People passed on March 6, 2023, allows applicants aged between 20 and 36 years to apply.
Criteria include citizenship and residency in Serbia, along with the stipulation that applicants must not already own residential property.
This initiative is open to a wide range of individuals, including agriculturalists, entrepreneurs, self-employed artists, and both employed and unemployed individuals, provided they have family member guarantees.
Economic experts have emphasized the significance of the low interest rates and minimal down payments in making these loans viable for young buyers.
Veljko Miljušković, an economist, stated that the program provides a stable repayment structure in its initial six years, transitioning thereafter to a more flexible system based on a formula involving the three- or six-month Euribor plus an additional 2% interest.
As the scheme progresses, the demand for affordable housing solutions is expected to shape the dynamics of the real estate market, reflecting a broader trend among young people in seeking greater independence through home ownership opportunities.
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