Housing lending in Latvia rises but still lags behind eurozone
According to the Bank of Latvia's latest Financial Access report, housing lending in Latvia has been increasing since 2024, with continued growth in 2025, but overall market activity remains among the lowest in the eurozone.
The Bank of Latvia's Financial Access report indicates that the overall lending situation, including housing loans, has been improving since 2024. In 2025, the growth in housing lending continued, signaling a gradual recovery in the market.
Despite this positive trend, Latvia's lending activity remains one of the lowest in the eurozone. This highlights that while the market is on an upward trajectory, it has not yet reached the levels seen in other euro area countries.
The data shows that housing credit expansion has been steady but slow. To close the gap with the eurozone average, a faster pace of lending growth and higher market activity would be required.
