Since the middle of last year, there has been a significant increase in prices in the real estate market, especially in new projects; during the year the average amount of the home loan went from 75 thousand euros to 85 thousand euros, according to “Light“banking data.
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However, the market is still active and there is no decline in new housing transactions. Referring to the real estate company “Ampleannounced, the bank recalls that in September the number of transactions increased by 4% compared to August. However, according to data from “Luminor”, the number of new mortgage applications has decreased slightly in recent weeks.
Prices in new projects increased by about 20% to 30% during the year, in other apartment segments the price increase was more moderate – about 10%. This is due to the increase in construction costs and the limited supply of new projects. Since the offer of the apartments in series is much wider, their price increase has not been so rapid.
“For several years, Latvia has been a leader in raising property prices in the Baltic countries, but over the past two years the price increase has been fastest in Lithuania and Estonia. Gradually, Baltic house prices are approaching the average level of the European Union, and this trend should continue in the future as well, “says Luminor Kaspars Lukačovs, head of personal loan in the Baltic states, stating that buying a property can be a good guarantee in the future. as prices will most likely not decrease. However, residents should carefully evaluate the possibilities of the family unit, taking into account the growth “Euribor“, as well as the prices of energy resources, which affect bills and become an additional financial burden.
Rising prices of energy resources have influenced the choice of residents, and in the last year there has been a growing interest in energy efficient housing, however their availability is low, which can be explained by the fact that the The highest energy efficiency class is currently available for a relatively small number of apartments and they are more expensive. According to the bank’s expert, residents are aware that an energy-efficient building is beneficial in the long run, as it will significantly affect future payments. Even in the future, a house with less energy losses will be more attractive on the market.
“With the increase in payments for electricity and heating, the offer of real estate on the market also changes – there are more large serial apartments for sale, for which there will be high utility payments, as well as large private homes. . At the same time, there has long been a demand for living spaces with modern solutions and an orderly layout of the environment. Unfortunately, the number of new apartment projects has been insufficient for a long time and does not meet the high demand, “he explains. Lukacov.
He points out that apartment buyers are starting to consider alternatives, so refurbished properties into serial homes will be in more demand.
