Number of Home Loans in Latvian Regions Triples in Three Years

Mortgage Activity in the Regions

According to Luminor bank, the number of home loans in Latvian regions has tripled in the last three years, surpassing 700 transactions. The strongest growth is seen in Jūrmala, Liepāja, and Ogre region, while demand remains stable elsewhere. The average loan amount in the regions is €104,000, and the average household income of borrowers is €2,900 per month.

Demand and Supply Specifics

42% of these loans were issued for the purchase or construction of private houses. Stable interest is maintained in Jelgava, Sigulda, and Valmiera regions, while activity is relatively low in Daugavpils, Ventspils, Cēsis, Jelgava, and Tukums regions. Luminor's head of housing lending, Kaspars Sausais, notes that interest rates in the regions do not differ from those in Riga – the main criteria are the borrower's financial situation and property quality.

Pierīga and Riga Market

Pierīga accounts for 23% of all loans, with the most popular areas being Mārupe, Ropaži, and Ķekava. There, 60% of loans are issued with a co-borrower, the average amount is €140,000, and household income is €3,800. In Riga, apartment purchases dominate, often compact three-room apartments in standard series buildings with an area of about 60 square meters.

Housing Choice Trends

Increasingly popular are energy-efficient and compact homes – 60% of clients building a private house choose factory-made wooden frame houses. The area of new builds has decreased from 145 square meters in 2021 to 132 square meters last year, while outdoor space (terraces, awnings) has grown from 40 to 48 square meters.

Loan Volume

In the first quarter of this year, an average of 270 households per month purchased or built a home with Luminor support, and the volume of new loans increased by 23% compared to the same period last year. Sausais attributes this to residents' need for new homes and greater confidence in personal finances.