Banks approved €46 million in loans during July.

This figure shows that demand for purchasing apartments remains high, but the restrictions set on lending levels have contributed to a drop in loan issuance. Compared to June, the value fell by nearly 40%.

The decrease was expected, since a citizen looking to buy an apartment worth €100,000 can no longer borrow more than €85,000, whereas before July they could borrow 90–100% of the property’s value from the bank.

Meanwhile, the monthly loan repayment installment is tied to income, with banks calculating that they can take up to 40% of monthly earnings—meaning €400 for someone earning €1,000 a month.

By limiting the monthly repayment capacity of borrowers, the overall loan amount is also reduced, as the maximum repayment period remains capped at 30 years.
According to the Central Bank, the lending restrictions were introduced to normalize property prices, which have risen by 180% over the past five years.