Building savings loans in the Czech Republic: a boom in 2025 driven by renovations
Building savings fuel the housing loan market
In 2025, building savings banks in the Czech Republic recorded significant growth in lending activity. According to data released by ČTK, the five building societies operating in the country granted loans totaling 67.2 billion Czech koruna, marking a 30.4% year-on-year increase compared to 2024. This result confirms the central role of building savings in housing finance, particularly at a time of rising property costs and growing attention to housing quality.
Unsecured loans lead the growth
Driving the market expansion were above all loans not secured by property, mainly used for the renovation of apartments and houses and for energy efficiency improvements. This type of financing accounted for 86% of the 51,258 loans granted during the year. The volume of unsecured loans reached 38.8 billion koruna, recording a 41.5% year-on-year increase, highlighting a growing demand for flexible and fast solutions to upgrade existing housing stock.
Average loan amounts on the rise
In 2025, the average size of loans granted by building societies also increased. While in 2024 the average loan stood at 1,071,200 koruna, last year it rose to 1,310,430 koruna. At the same time, the total number of loans issued increased by 6.6%, indicating not only higher overall volumes but also a tendency among clients to apply for larger amounts, often linked to more complex renovation projects or energy-saving investments.
New building savings contracts decline
Contrary to the strong growth in lending, the number of new building savings contracts recorded a slight decline. In 2025, 437,067 new contracts were signed, 3.4% fewer than in the previous year. The total target amount, which reflects clients’ future intentions to save or borrow, also fell by 5.7%, dropping to 292.6 billion koruna. Nevertheless, according to the Association of Czech Building Societies (AČSS), building savings remain a reliable, safe and predictable financial instrument.
The role of building societies in the housing market
“The 2025 data clearly show that building societies play a fundamental role in financing higher-quality housing in the Czech Republic,” said Pavel Čejka, executive director of the AČSS. The performance of individual institutions confirms a dynamic market, with strong growth for ČSOB and Raiffeisen, while other players posted more moderate results. Overall, the sector continues to represent a key pillar of the Czech financial system, especially for households focusing on renovations, sustainability and improving the energy efficiency of their homes.
Source: Ceske noviny
