Residential Property Finance

By the fourth quarter, loan commitments totalling €64.9 billion had been granted for the construction and purchase of single-family homes and apartments, representing an increase of 16.1% over the same period last year. Loan commitments for multi-family homes also increased, with a stronger growth rate of 27.4%. Overall, the volume of loan commitments for residential property amounted to €92.6 billion by the fourth quarter of 2025, representing an increase of 17.5% compared with the same period of the previous year. Compared with the third quarter of 2025, the volume of loans rose slightly from €22.3 billion to €22.7 billion in the fourth quarter. The cumulative annual figures show that, despite construction costs remaining high, vdp member institutions significantly increased their lending for residential property in 2025. However, the persistently high construction costs are likely to have prevented an even sharper rise and, at the same time, are limiting growth potential in the medium term, particularly in the area of financing new housing construction.

Source: vdp based on information provided by vdp member banks