LISBON, Sept. 25 (Xinhua) -- Portugal's housing credit stock surged 8.4 percent year-on-year in August 2025 to 107.1 billion euros (125.31 billion U.S. dollars), marking the strongest growth since July 2008, according to data released Thursday by the Bank of Portugal.
The Portuguese mortgage market is experiencing momentum unseen in 17 years, the central bank said in a statement, attributing the surge to a recovery in the real estate sector and renewed confidence among households to take on long-term debt.
The housing credit boom is part of broader private lending growth, which reached 8.2 percent year-on-year in August, also the highest in 17 years. Consumer and other purpose loans continued to grow strongly, rising 175 million euros from July to 33 billion euros, representing 7.7 percent annual growth, the bank noted.
The surge reflects more favorable financing conditions and increased public support for young buyers, contributing to sustained housing credit acceleration in recent months. Portuguese families appear confident in taking on long-term debt, financing not only home purchases but also other consumption projects such as automobiles and equipment, the bank said.
The central bank added that the data underscores Portugal's economic recovery momentum, but warned that rapid credit expansion raises concerns about debt sustainability as the country continues to emerge from past financial difficulties. It added that regulators will continue to monitor lending practices to ensure sustainable debt levels across the economy. (1 euro = 1.17 U.S. dollars) ■