Housing development

The housing gap (i.e. in simple terms: the difference between demand and the existing number of dwellings) is between 400 thousand and even 3 million dwellings in Poland, according to various estimates. Bank Gospodarstwa Krajowego has supported the housing development since its inception. Residential construction – providing Poles with access to dwellings and driving the economic growth – was the second largest area of BGK’s pre-war activities after lending to enterprises and state institutions. After almost one hundred years, the Bank’s mission has remained the same. We fulfil it through three main programmes.

Social and Municipal Construction Programme

Since 2007, using the Subsidy Fund BGK has implemented a government programme of non-repayable financial support for construction of residential property for rent, formerly called “social and municipal construction”. The programme produces residential units for rent, including those which are included in municipal housing resources, as well as social housing and accommodation, such as assisted accommodation, lodging houses, houses for homeless, warming centres and temporary shelters.

Resources created in the programme are intended to meet the needs of people with low and average income and, as a very important and necessary goal – the homeless.

Thanks to the provided non-repayable support, as at the end of 2020 the construction of nearly 22 thousand housing units and 1.4 thousand social welfare units had been completed.

At the end of 2020, 4.9 thousand housing and social welfare units were under construction.

PLN billion
value of financial support
PLN billion
total amout of projects

Social Rental Housing Programme

In our country, there is a group of people whose income is too high to be eligible for the allocation of an apartment from municipal resources and, at the same time, it is too low to enable them to rent or purchase an apartment on the commercial market with a mortgage loan or for cash. Bank Gospodarstwa Krajowego facilitates activities for the reduction of the social problem of the accessibility of apartments for this group.

BGK advances long-term preferential loans to investors in the social rental housing (SRH) sector, i.e. social housing associations, housing cooperatives and municipal companies. The programme produces turnkey rental housing units with a moderate regulated rental rate. As part of the programme, in 2015–2024 the Bank can provide financing of PLN 450 million each year. By the end of 2020, BGK granted 140 loans with a total amount of more than PLN 811 million for the construction of more than 6.4 thousand apartments, of which 4.4 thousand had already been completed. Since the beginning of the programme, the largest number of rental apartments have been completed in the Silesia, Mazovia and Lower Silesia regions.

loans advanced
PLN million
total amount of loans
apartments completed by the end of 2020
apartments to be built under the SRH programme

In addition to the SRH programme, the Bank provides loans to investors in the sector on arm’s length terms. The added value in this case was, among other things, the possibility of financing lease-purchase apartments or apartments, the title to which may ultimately be transferred onto the tenant, permitted also in the SRH programme after the amendment of the act. A total of 5 thousand apartments were financed with 101 loans for more than PLN 423 million.  This promotes so-called social mix that facilitates sustainable development of towns and cities.

An example of a project promoting both social and environmental objectives is the one in Oława. The project, co-financed by BGK with SRH preferential loans of more than PLN 7 million, consisted in comprehensive regeneration and adaptation for residential and commercial purposes of the 19th century historic stable and riding hall. It fulfils the mission of Social Housing Associations and BGK in terms of creating and renewing urban fabric and providing apartments with a regulated rental rate to persons with moderate income. 76 such premises were completed as part of the project. In addition, it performs a social function – in the renewed buildings there are premises intended for an organisation providing assistance to disabled children, as well as a kindergarten. It also has environmentally friendly features – renewable energy sources in the form of heat pumps were installed. In 2019, the project received an award for the best residential project in an international competition organised by a German development bank Kreditanstalt für Wiederaufbau (KfW), and in 2020 it was awarded at the PLGBC Green Building Symposium for the best environmentally friendly multi-family residential building.

Mieszkanie na Start (Housing for a Start)

“Housing for a Start” is a government system of subsidies to apartment rent implemented by BGK since 2019.

The rent subsidy programme has two main objectives: social and investment. The former consists in the provision of assistance to households with difficulties to meet their own housing needs, while the latter is to offer an incentive to pursue rental housing construction projects.

Bank Gospodarstwa Krajowego is the keeper of funds of the Subsidy Fund earmarked for subsidies to apartment rents.

Since the launch of the programme until 31 December 2020:

projects were covered by the programme
apartments were covered by subsidies
PLN million
of reserved funds for 15 years
PLN million
was disbursed

“Clean Air” guarantees

In the second quarter of 2021, BGK intends to extend its guarantee offer to include “Clean Air” guarantees from the Ecological Surety and Guarantee Fund.

These will be guarantees for the repayment of loans for financing expenses related to the replacement of air-polluting coal furnaces and for improving the energy efficiency of a single-family house or an apartment in a single-family house with a separate entry in the land and mortgage register. This will make it possible to receive support in the form of a guarantee for loans provided to finance projects related to the replacement of outdated, inefficient heat sources with modern ones that meet the highest standards and to carry out the necessary thermal modernisation works to improve the energy efficiency of the building (Clean Air programme).

Importantly, the beneficiaries of the guarantee will be natural persons. The new guarantees will cover up to 80% of the loan principal, whose maximum amount may be PLN 100 thousand.