The Central Bank of Estonia has released its May 2025 statistics for banks and leasing companies, highlighting a seasonal pick-up in housing lending and continued portfolio growth. Banks issued EUR 219 million of housing loans in May, 23% more than a year earlier, while the housing loan portfolio was 9% larger than in May 2024. The release links the stronger issuance to the typically busy second quarter and a recovery in real estate activity after a quieter period in 2023 and the first half of 2024. Demand was supported by declining Euribor and a lower average housing loan interest margin, which is now at its lowest level in a decade, while an increase in value added tax in July 2025 may have brought some transactions forward. Loans have also financed a higher share of housing market transactions than usual, rising to around 50% in recent months compared with a typical 40%. Eesti Pank notes that loan growth is expected to remain relatively strong as the economy recovers, but that conditions differ from the 2021–2022 mini-boom driven by rapid income growth, accumulated savings and withdrawals from the second pension pillar. The statistical release covers the volume and structure of assets, loans and leases, deposits, and interest rates, and is presented separately from economic policy communications.
Central Bank of Estonia 2025-06-30
Central Bank of Estonia publishes May 2025 bank statistics showing housing lending up 23% year on year to EUR 219 million
The Central Bank of Estonia reported a seasonal increase in housing lending for May 2025, with banks issuing EUR 219 million in housing loans, a 23% rise from the previous year. The growth is attributed to a recovery in real estate activity, declining Euribor, and a lower average housing loan interest margin. Loans now finance around 50% of housing transactions, up from the typical 40%, ahead of a VAT increase in July 2025.