Serbia unveils new housing program for youth with subsidized mortgage payments

Serbia is set to introduce a new youth housing program, expected to be adopted by January next year. The initiative includes a guarantee scheme that will subsidize interest rates, ensuring that the monthly installment for purchasing a first property will not exceed 200 euros. Finance Minister Siniša Mali announced that the program is in the final stages of preparation, with the law expected to be presented to the National Assembly by mid-January. Mali emphasized that such a program is only possible in a country with stable finances and strong economic growth.

Key details of the new housing program:

• The program will allow young people to buy their first property with low initial costs. For example, a 75,000-euro apartment would require just a 750-euro down payment, with the state covering a significant portion of the interest rates.
• The repayment structure includes a grace year, followed by reduced installments for the first five years, which gradually increase according to the current market interest rates. In the first year, the installment will be just 93 euros, rising to 198 euros from the second to the sixth year, and reaching 357 euros from the sixth year onward.
• This housing program is unique, with Mali stating that no similar scheme exists globally. It has been in development for years, with the state now having the necessary financial space to fund it.

State’s role and financial support:

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• The program will be funded with 400 million euros from the state budget. Mali pointed out that Serbia’s stable financial situation, with a substantial reserve in the national account, makes this initiative feasible. Serbia’s status as the second-fastest-growing economy in Europe further supports the execution of such ambitious projects.

Participation fees and future prospects:

• The program aims to address the challenge of raising money for a down payment. President Vučić revealed that the government will collaborate with the National Bank to create guarantee schemes that will only require a 3-5% participation fee from young buyers.
• The goal is to ensure that monthly payments do not exceed 200 euros, providing significant relief for young people trying to enter the housing market.

This program is part of the government’s broader initiative to support Serbia’s youth by addressing housing challenges and providing affordable pathways to homeownership.