BAKU, Azerbaijan, July 21. Iranian banks' lending to the housing and construction sector declined by 31 percent during the three months of the current Iranian year (from March 21 through June 21, 2025), compared to the same period last year (from March 20 through June 20, 2024).
Data obtained by Trend from the country's Central Bank (CBI) indicates that banks extended 409 trillion rials (about $708 million) in loans to the housing and construction industries during this period, down from 592 trillion rials (about $1.03 billion) in the previous year’s comparable timeframe.
The data reveals that of the total loans granted, around 194 trillion rials (about $336 million) were allocated as working capital, while nearly 197 trillion rials (about $342 million) were directed towards construction projects.
Further breakdown shows that credits for development activities in housing and construction reached 9.3 trillion rials (about $16 million). Additionally, loans for home purchases and self-employment in housing stood at 6.62 trillion rials (about $11.5 million) and 980 billion rials (about $1.7 million), respectively.
Banks also provided smaller amounts of credit for purchasing personal vehicles and repair work in the sector, totaling 222 billion rials (about $384,000) and 289 billion rials (about $500,000).
Despite the downturn in housing and construction loans, overall lending by Iranian banks and financial institutions across all sectors increased by 41.3 percent, totaling nearly 13.5 quadrillion rials (about $23.4 billion) during the same period.
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