Serbia’s Minister of Finance, Siniša Mali, announced that President Aleksandar Vučić will present the final version of the government’s subsidized housing program for young people. The proposal is expected to be submitted to the National Assembly by mid-January, with implementation set for March 1, 2025.
Mali emphasized the significance of the program, calling it one of the most important initiatives aimed at addressing the housing challenges faced by young people in Serbia. The goal is to help them overcome the two major obstacles in purchasing their first home: the down payment and high-interest rates.
In this program, the typical 20% down payment required for a loan is drastically reduced to just 1%. For example, a 75,000-euro loan would only require a down payment of 750 euros, while a 100,000-euro loan would need only 1,000 euros. This represents a major shift, allowing young people to secure a loan with far lower upfront costs—avoiding the need to save tens of thousands of euros for a traditional down payment.
Additionally, the state will subsidize the loan interest through a guarantee scheme. The minister explained that for a loan with a 750-euro down payment, the first year’s monthly installment would be as low as 93 euros—significantly less than the rent many young people pay. From the second to the sixth year, the monthly installment would rise to 175 euros, and from the sixth year until the end of the loan, it would be based on the six-month Euribor rate plus 2%. With the current Euribor rate, the installment would be around 350 euros, and as the Euribor decreases, so too will the monthly installment, which would remain at or below the typical cost of apartment rent.
This program aims to make homeownership more accessible for young people, offering them an affordable path to their first home.
