We present to you an article in which the Latvian bank "Swedbank" analyzes the main trends in the real estate market.
Activity in the mortgage market
Mortgage lending market activity is increasing this year, however geopolitical instability and income uncertainty continue to hold people back from realizing their dream of a new home.
Popular types of real estate
The most sought-after are compact apartments (36-75 m²), where the average loan amount is 59 thousand euros. Buying an apartment in a new building costs twice as much - 113 thousand euros, buying a private house - 109 thousand euros, and building a new house requires an average of 150 thousand euros. Additionally, you need to add the down payment amount.
Profile of a mortgage borrower
The average loan amount is 80.8 thousand euros (2% less than last year). Family gross income - 2635 euros per month. More than half of clients spend no more than 30% of their income on loan payments. Average loan term - 16-25 years.
Secondary market and new construction
Housing sales this year increased in the secondary market and in series houses, while in the new construction segment there is a decline of one third. In the economy class (2700 euros per m²) there are about 1800 ready apartments and 2500 are under construction. In the business segment (2700-3500 euros per m²) demand remains stable, however the share of reservations for apartments under construction has decreased to 28%.
Price expectations
Approximately 45% of respondents believe that real estate prices will continue to rise next year.
Forecasts for next year
A decrease in EURIBOR rates to 2% is expected, which will make loans more affordable. Household purchasing power has recovered (as inflation has decreased), strengthening confidence in financial stability and stimulating the housing market recovery.
Have questions? We are waiting for your email or call!
Phone number: +371 29774775 (Viber, WhatsApp)
Email: info@kominvest.com