Housing loans in Cyprus grew by nearly a quarter despite the regional crisis

In the first quarter of 2026, the housing loan market in Cyprus demonstrated steady growth. According to the Central Bank, the volume of new housing loans increased by 24.5% compared to the same period last year, despite ongoing tensions in the Middle East.

The total amount of new loans issued to households reached 437 million euros, compared to 371 million euros a year earlier. This was the highest quarterly figure since 2022.

Particularly notable growth was observed in the mortgage lending segment. New housing loans totaled 353.6 million euros, while in the first quarter of 2025 this figure stood at 284.1 million euros. Analysts note that demand for housing and bank financing remains stable despite geopolitical instability and economic uncertainty.

At the same time, the business lending market showed the opposite trend. The total volume of new loans for companies decreased to 635 million euros compared to 851 million euros in the previous quarter. The most significant decrease was recorded in the segment of large loans over one million euros — from 730.8 million euros to 492.3 million euros.

Meanwhile, loans to small and medium-sized businesses for amounts up to one million euros showed growth, increasing to 142.3 million euros. Experts attribute this to more cautious bank policies and a decline in activity for large investment projects.

Furthermore, the volume of restructured loans for both households and businesses decreased. This may indicate a gradual improvement in the financial stability of borrowers.