Since the launch of subsidized housing loans for young people, around 3,000 individuals have expressed interest in the program. The key advantage is the reduced down payment requirement of just 1%, compared to the usual 20% demanded by banks. The loans also offer a subsidized fixed interest rate of 2% for the first six years, with the government covering an additional 1.5%. After six years, the interest rate becomes variable.
Despite the program’s appeal, real estate experts warn that many young applicants may not qualify. Banks are likely to prioritize solvent clients with stable incomes, even though the program allows unemployed individuals to apply with a guarantor.
The most significant obstacle for many young people, especially in Belgrade, is finding eligible apartments within the price cap of 100,000 euros. New apartments that meet the requirements are scarce, often limited to older buildings or state-funded projects.
Some experts have raised concerns about potential abuses within the program. Issues such as improper real estate appraisals, inflated property prices, and possible misuse of loans could undermine the program’s effectiveness. There is also the risk of problematic loans if young borrowers default on their payments.
So far, the state-owned Poštanska štedionica and several private banks, including Unicredit and OTP, have joined the program, but some private banks remain hesitant due to the perceived risks.
