The demand for housing loans in Cyprus saw an increase in the third quarter of 2024, marking the first rise since early 2022, according to the Central Bank of Cyprus’ (CBC) October 2024 Bank Lending Survey (BLS).
Stable Business Loan Demand
While demand for housing loans grew, the survey found that business loan demand remained unchanged for the second consecutive quarter. Despite fluctuations in other financial sectors, businesses maintained a steady borrowing pattern, reflecting stability in the corporate lending environment.
Lending Criteria and Loan Terms Remain Unchanged
The survey also revealed that credit standards for both household and business loans remained consistent during Q3 2024, with no significant changes in lending terms. This marks the third consecutive quarter where lending criteria for housing loans have remained unchanged, suggesting a stable lending environment without tightened restrictions or eased requirements.
Furthermore, the factors influencing lending criteria—such as risk perception, economic outlook, and financial conditions—had a neutral impact on loan approvals.
Market Trends in Lending Demand
Outlook for the Lending Sector
The rise in housing loan demand signals growing consumer confidence and potential recovery in the real estate market. Meanwhile, steady business loan demand reflects a balanced corporate lending climate. As financial conditions evolve, future trends will depend on interest rates, economic policies, and overall market confidence.
Source: Stockwatch Cyprus