Housing Loans Fall by 16 Percent, Cash Loans Continue to Soar

The number of approved housing loans in the first eight months of this year is down by 15.8 percent compared to last year. This is evidenced by data from the Croatian National Bank, which shows that by August 2024, 14,077 housing loans were disbursed, while in the same period last year, the number of newly approved loans was 16,715. In addition to the decline in residential real estate transactions, this is further proof of the slowdown in the Croatian real estate market.

– In the first eight months of this year, an average of just under 1,800 housing loans were disbursed monthly, which is about 15 percent less than in the same period in 2023. The average disbursement was around 110 thousand euros – stated the HNB.

And while the demand for housing loans is waning, cash loans are an absolute hit. From the beginning of January to the end of August, the total value of newly approved cash loans reached 2.3 billion euros, which is 47 percent more than new housing loans, which were valued at 1.5 billion euros. In the same period, more than 257 thousand cash loans were disbursed, representing a growth of 28.7 percent compared to last year’s 200 thousand loans (in the same period).

– In the first eight months of this year, an average of about 32 thousand loans were disbursed monthly, which is about a third more than in the same period in 2023. The average disbursement was around 9 thousand euros. Cash loans to households increased in October by 16.3 percent year-on-year, measured by transactions, compared to the same month of the previous year, and as of October 31, 2024, the balance of cash loans amounted to about 9 billion euros – stated the HNB’s response.

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