Interest rates on housing loans declined during 2025, supporting further growth in mortgage lending.

According to data from the Bank of Albania, the average interest rate for lek-denominated housing loans stood at 4.19% in December 2025, down from 4.52% a year earlier.

Meanwhile, the rate for euro-denominated loans edged down to 5.18%, from 5.26% in December 2024, marking the lowest level since mid-2022.

New housing loans reached about 65 billion lek, or roughly €658 million, representing a 17.3% increase compared to 2024.

This growth outpaced the previous year, when new mortgage lending rose by 13%. The trend reflects strong household demand for homeownership and continued confidence in the credit market.