Everything about the announced state measures that help young people buy their first property with only 1% down.
The youth housing loan programme has been adopted: a housing loan with only 1% down, to start on 14 March 2025, for Serbian citizens aged 20 to 35 buying their first apartment or house. Here is what was known at the time and how it may affect the market and prices.
What the subsidies include
- A down payment of only 1% instead of the usual 20% or more.
- Subsidised instalments for the first 6 years: 1.5% interest for the client, with the remaining 2% covered by subsidies; after six years the rate rises to 2% plus EURIBOR.
- Repayment over up to 40 years, longer than any Serbian bank currently offers.
Which banks?
All banks may take part; at the time Poštanska štedionica, the only state bank, was named, with others expected to join.
How will it affect supply and demand?
Miloš Mitić, director of City Expert, expected demand to grow for properties of about 100,000 euros, the frame of the programme. For that budget a 50 m² apartment can be bought on the outskirts of Belgrade. In the long run, mass lending to people with uncertain creditworthiness could destabilise the market within 3 to 5 years.
New builds and the first-home loan
Developers are often reluctant about loan buyers, who can only get a housing loan once a building is 80% complete. Key details were still missing, such as priority criteria; 400 million euros of subsidies had been secured, so not everyone interested would get one.
Frequently asked questions
Who can apply?
Serbian citizens aged 20 to 35 buying a property for the first time.
Can I apply if I am unemployed?
It was announced that the unemployed and students from 20 could apply with a creditworthy guarantor.
