In recent years, the number of loans issued for the construction of wooden houses has increased by about 25%.
It shows Luminor information collected by the bank. Most often, such houses are chosen to be built in Riga and Pieriga, however, interest is also growing in other regions of Latvia.
The number of mortgage loans issued by Luminor has grown by a third during the pandemic, and with the overall market growth, the demand for loans for the construction of wooden frame houses has also increased.
In recent months, the funding allocated for the construction of wooden houses has reached up to 45% of all bank-financed construction transactions for individuals. The trend is upward, as only a few years ago only one in five loans was granted for the construction of wooden houses.
“Most often, when thinking about building a house, the construction of a stone building is considered, however, more and more Latvians are also choosing wooden buildings, which is a modern solution. The growing interest in wooden frame houses can be explained by the fact that their construction costs are more predictable, and the installation takes place in a shorter time compared to the classic construction process. Luminor The data show that customers prefer companies that have many years of experience in this field and that work to the highest quality standards – and there are more and more of them in Latvia, ”points out Luminor bank housing lending expert Kaspars Sausais.
The construction of wooden frame private houses is mainly popular in Riga and Pieriga, however, the interest is also increasing in other regions of Latvia.
According to the data of the Latvian wooden construction cluster, there are currently about 100 companies operating in Latvia that are engaged in the construction of wooden houses. The products are mainly exported to the Scandinavian countries, especially to Norway and Sweden, but wooden buildings manufactured in Latvia can also be found elsewhere in Europe.
The construction of wooden frame houses is considered to be one of the most sustainable ways of housing construction. “We saw an increase in the demand for private houses especially last year, when during the pandemic people began to appreciate the advantages of private houses over apartments, but in general, stable growth in the production of wooden houses has been observed for at least four years. Most often, wooden frame houses are chosen by young families living in Pieriga or in the seaside area. For several years, customers have most often chosen wooden houses with an area of 107m2, but now the interest is also growing for larger living areas, which are about 130m2 to 160m2. The most popular choice is one-storey houses, moreover, if the land is large enough, then such a house can also be more ergonomic than a classic two-storey house, ”says the company. Līva Group owner Agris Smelteris.
K.Sausais adds that when evaluating the construction of a house planned by the bank’s customers, the use of wood is not assessed more conservatively than other materials, nor are additional financing restrictions set for the purchase or construction of wooden houses.
–
