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The Government of the Republic of Serbia

In the service of citizens

Youth housing loan programme a measure for Serbia’s future

Belgrade, 21 December 2024

President of the Republic of Serbia Aleksandar Vučić announced today that the housing loan programme for young people, for the purchase of their first home, is a measure for the future of Serbia in economic, demographic and every other sense.

Addressing the public at the Palace of Serbia, Vučić stated that the conditions for obtaining a youth housing loan are that the maximum value of the property is €100,000 and the minimum down payment is one percent, for a period of up to 40 years, and a maximum of 70 years of age, with the possibility of early repayment.

He said that this is a fight for every parent to keep their child in the country, as well as a fight for the return of those from abroad, and added that the unemployed and university students will be able to buy property.

The President gave an example of a property whose value is €75,000, for which the down payment would be €750, the loan processing costs up to €750 and the loan repayment period of 35 years.

He said that for such a loan, the user's instalments in the first year would be €93, and the state's contribution would be €124.

For example, if the value of a property is €100,000, he added, the down payment would be €1,000, and the loan processing costs would be up to €1,000.

According to him, the condition that must be met for using funds from the housing loan programme is that interested parties are citizens of Serbia, aged 20 to 35.

If we see that this project yields results, given that we still have many young people between 35 and 40 years old who could solve their housing issue in this way, we will work on it in one year, because at the moment it is not financially possible to support the inclusion of members of this age group in the project, Vučić stated.

He said that properties that are registered in the land cadastre can be purchased, old or new.

By this we also mean buying a house. So, we are talking about people who want to buy a house anywhere, not just an apartment in Belgrade, Novi Sad, Niš or Kragujevac. We also talk about people who want to buy an apartment, parts of a residential building intended for housing, a garage or a garage space if it is together with an apartment, in which case their separate purchase will not be possible, the President explained.

He announced that the youth housing loan programme will start to be implemented from 1 March to 15 March, that for now €400 million are planned for 5,500 housing units, of which €130 million are a gift from the state.

The President stated that the law will be completed in February and submitted for the parliamentary procedure, noting that the adoption of by-laws of the National Bank of Serbia is expected, with most of the work already completed.

Vučić announced that the state is working on another project and that within about ten days, by the New Year, it will show how and in what way people from the diaspora can be attracted to return to Serbia.

He stated that it is an incentive programme that includes numerous measures for returnees, some of which have already been adopted, and which could be completed around Christmas.

These are various incentives, the law on personal income tax, incentives for employers, numerous benefits - from customs benefits to subsidies for self-employment of returnees, to support for pensioners from the diaspora, as well as health insurance issues.

Vučić also announced that pensioners in Serbia will receive their December pensions increased by 10.9 percent on Christmas Eve, four days earlier than the regular pension payment day, that from the New Year the minimum wage will be increased by 13.7 percent, as well as the wages of public sector employees by eight and 11 percent.

He also emphasised that efforts will be made to ensure that salary growth in education sector keeps up with other increases.