bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 22.04.2019 | Name days: Armanda, Armands
LatviaLatvia

Swedbank: Latvian residents prefer private homes and new project buildings

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUCurrently there is 10-15% growth observed on Latvia’s real estate market. Residents mostly prefer private homes and new project buildings, according to information from Swedbank.

The average mortgage loan amount last year was EUR 66,000, which means 10% grown when compared to the previous year. The majority of real estate objects were bought in Riga – 60%. Demand in Pieriga and regions is similar – 20%, according to the bank’s information.

Residents prefer private homes and new projects

As construction of private homes develops the ratio of apartment purchases declines. Generally 23% of residents decided in favour of purchasing private homes (an increase of two percentage points). As for the apartment segment, residents mostly prefer new project buildings (built in 2017 or 2018), where an increase of three percentage points was observed, according to data from Swebank.

Generally, one fifth of apartments bought last year were in buildings built between 2000 and 2016. Every tenth apartment was bought in new project buildings. However, there is still a distinct preference for buildings built before 2000 (69%). As for the private home segment, 35% of purchased homes are new (built in the past two years). As for the second-hand market for private homes is active – 27% of residents have purchased buildings built between 2000 and 2016, whereas 28% of purchased buildings were built before 2000, the bank reports.

As for the size of housing, demand for relatively large homes has returned – 23% of homes purchased in 2018 were larger than 250 m2. As a comparison – the ratio of such houses in Estonia and Lithuania is only 9% on the market. At the same time, however, demand is on a rise for housing smaller than 150 m2. Swedbank experts note that the average area of newly-built private homes is usually around 170 m2, which is considered optimal for a family home. As for the apartment segment, smaller area apartments are in demand the most (38% prefer apartments that are 36 m2 or 55 m2), as well as apartments with an area 75 m2 (35%).

«We can see that Latvia’s real estate market is becoming more active. New housing and commercial areas continue popping up, property purchase prices are also on a rise. However, positive changes in the economy, residents’ more responsible attitude towards housing purchase and a reasonable lending policy helps maintain balanced growth of the market,» says Swedbank Head of Mortgage Support Department Normunds Dūcis.

«It is notable that caution is generally higher in Latvia, where real estate market grows slower than it does in Lithuania and Estonia. This caution is both rational and emotional, because income of households is on a rise, apartment price rise is moderate and housing accessibility in Riga is better than it is in Vilnius and Tallinn,» said Dūcis.

Trends in demand for new multi apartment projects

In recent years there has been an increase for economy-class apartments (priced EUR 1,550 per 1 m2) in the new multi-apartment project segment. Last year, 65% of all purchase transactions in new projects were performed in the economic segment. There is active development of new projects in this segment. 2,000 new apartments are currently under construction. Another 3,500 are planned for the next three years, Swedbank notes.

Much fewer purchase deals have been noted for business-class apartments (up to 2,500 EUR/m2) and exclusive apartments (more than 2,500 EUR/m2) – 24% and 11% of all purchase deals. The average price of 1 m2 for business-class apartments was EUR 2,100 last year. An average of 30 purchases was made every month. There are 800 apartments of this class currently under construction. The number of purchases made in the exclusive-segment is very small – about 15 purchases of apartments whose average price per 1 m2 is EUR 3,100, the bank reports.

Trends in the private home construction sector

Currently the majority of all built private homes have only one floor (70%). Wooden frame houses are also on a rise popularity-wise (40%). This means wooden panels are manufactured based on special orders at factories, Swedbank reports.


Leave a reply

Forevers: 615 tonnes of grilled meat was consumed in Latvia last year

615 tonnes of meat products for grilling was sold in Latvia in 2018, according to sales data from meat processing company Forevers.

Every day hens in Latvia produce an egg for every resident

The number of laying hens in Latvia, when compared to 2017, had increased 19.2% in 2018, reaching 3 million, according to data from the Central Statistical Bureau of Latvia. Compared to the previous year, the total number of domestic birds has increased 9.3%, reaching 5.4 million, which is the largest index since 1992.

73% of residents believe they benefit from Latvia’s membership in EU

Approximately 73% of residents believe Latvia benefits from membership in the European Union. Interviewed residents mainly outline job opportunities, economic growth and security, according to the latest data compiled by Eurobarometer.

General government budget deficit in Latvia reached EUR 295.4 million last year

In 2018 general government budget deficit accounted for EUR 295.4 million or 1 % of the Gross Domestic Product and general government consolidated gross debt amounted to EUR 10.6 billion or 35.9 % of the GDP.

Egils Levits optimistic about his chances becoming Latvia’s president

Presidential candidate and European Court of Justice Judge Egils Levits is optimistic about his chances of becoming Latvia’s next president.

Estonia’s government to be formed by standing Prime Minister Jüri Ratas

On Thursday, 17 April, Estonia’s parliament entrusted formation of the country’s government to Centre Party’s chairman and standing Prime Minister Jüri Ratas.

At least 29 die as German tourist bus runs off road in Portugal

At least 29 people were killed and 27 were injured when a German tourist bus ran off the road on Madeira Island in Portugal, as reported by BBC.

EY: businessmen show very positive outlook towards global economy

The latest Ernst&Young EY Global Capital Confidence Barometer reveals a generally optimistic outlook businessmen have around the world – 93% of interviewed company CEOs believe the economic situation in the world is steadily improving. The same opinion was voiced by 73% of interviewed CEOs last year.

Orkla Latvija signs contract for construction of Laima manufacturing plant in Ādaži

On Wednesday, 17 April, Orkla Latvia signed a contract worth EUR 8.9 million with construction company Merks on the construction of a Laima manufacturing plant in Ādaži, BNN was told by Orkla Latvija representative Lineta Mikša.

As police arrive, Peru’s ex-president commits suicide

Ex-president of Peru Alan García committed suicide on Wednesday, 17 April, when police arrived to arrest him for corruption.

Estonia’s president to meet with Putin; the two will discuss Baltic security

On Thursday, 18 April, Russia’s President Vladimir Putin will meet with Estonia’s President Kersti Kaljulaid, as reported by Estonian public media ERR.

Europe’s borders to be reinforced – a specialist corps to be formed by 2027

On Wednesday, 17 April, the European Parliament approved a new law to strengthen Europe’s border and coast guard, as reported by EP representative in Latvia Signe Znotiņa-Znota.

Latvian residents engage in marriages more often than before

Over the past three years the number of registered marriages has risen slightly. In 2018, 13.4 thousand marriages were registered, which is 200 marriages more than in 2017 when the increase recorded over the year constituted 148 marriages.

Ventspils City Council fever. Symptoms, treatment and preventive measures

Ventspils City Council fever. Symptoms, treatment and preventive measures

Turnover of Fazer Latvija reached EUR 25.36 million in 2018

The turnover of Fazer Latvija reached EUR 25.36 million in 2018. The company has also increased its bread market share to 20.9%, as reported by the company.

Saeima lawyers: media council failed to comply with law when composing LTV board

When organizing LTV board selection process, Latvia’s National Electronic Mass Media Council failed to comply with requirements of the law, as concluded by Saeima’s Legal Affairs Office, stressing that dismissal of council members requires serious and legally backed reasons, LTV programme Panorāma reported on Tuesday, 16 April.

President Macron wants to restore Notre Dame Cathedral in five years

France’s President Emmanuel Macron says Notre Dame Cathedral will become ‘even more beautiful’ after renovation, and wants restoration work to be finished in five years, BBC reports.

Riga City Council asked to explain why they think Deglava Bridge is safe to use

Riga City Council has to immediately provide detailed explanations to the State Construction Control Bureau why Deglava Brige is still open for public use. The city council is also asked to provide justified reasons for limiting the mass of vehicles. This request was submitted by Latvia’s Economy Minister Ralfs Nemiro.

Estonia’s president entrusts government’s formation to Ratas

Estonia’s President Kersti Kaljulaid decided on Tuesday, 16 April, to entrust formation of the country’s new government to Centre Party representative Jüri Ratas, as reported by public media ERR.

Egils Levits could secure at least 55 votes in presidential elections

If Saeima deputies vote as the have promised, European Union Court of Justice Judge Egils Levits could secure at least 55 votes in presidential elections.

Whistle-blowers to receive protection across all of Europe

From now on EU legislation will offer protection to people reporting information regarding illegalities and general criminal activities, as decided by European Parliament on Tuesday, 16 April.

Municipality in Estonia wants a nuclear reactor

Viru-Nigula municipality in Estonia is interested in becoming the home for the nuclear reactor Frmi Energia is planning to build in the country, as reported by Estonian public media ERR.

OECD: Latvia’s labour market policy has a positive effect on the unemployed

The measures employed by Latvia’s labour market policy have positive influence on opportunities of the unemployed. However, there is also more need for support of people at risk of social exclusion, as concluded in the study performed by the Organization for Economic Co-Operation and Development «Connecting People with Jobs: Latvia».

Latvia's Prime Minister: government’s action plan may be clarified in time due to shortage of funds

Because of the shortage of funds, the government plan may be clarified after some time, said Latvia’s Prime Minister Krišjānis Kariņš during a meeting of the National Council for Trilateral Cooperation on Tuesday, 16 April.

Supreme Court proposes attorney system to improve situation with cassation complaints

The Senate is interested in quality cassation complaints. This is why it may be prudent to consider adopting a Supreme Court Attorneys System, says the Senate’s Civil Cases Department chairman Aigars Strupišs.