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International Internet Magazine. Baltic States news & analytics Monday, 21.01.2019, 22:30

Family in Vilnius can afford smaller apartment than in Riga, Tallinn

BC, Riga, 13.06.2018.Print version
A family with average income in Vilnius could afford buying the smallest apartment among the Baltic capitals in the first quarter, writes LETA, according to Swedbank's Baltic Housing Affordability Index.

A family in Vilnius could afford an apartment of up to 73.2 square meters for an average price, compared to up to 100 square meters in Riga and up to 83.6 square meters in Tallinn.

The housing affordability index is almost all-time high in Vilnius and the western port of Klaipeda, Swedbank's senior analyst Laura Galdikiene says. In her words, wages grew faster than apartment prices in all three Baltic capitals but only Vilnius residents could afford smaller housing.

"Tallinn saw the fastest wage growth, followed by Riga and Vilnius. Vilnius resident's possibilities to afford an apartment weakened due to rather fast growth in apartment prices, slower than in other cities wage growth and a rise in mortgage interest rates over a year. Despite an increase in interest rates in Lithuania, they were still the lowest in the Baltic states dues to large mortgage demand and a rise in riskier loans," she said.

The area of affordable housing saw the largest increase in Riga in the first quarter as residents could afford buying an apartment that was 8.7 square meters bigger than in the last quarter of 2017. The area grew 3 square meters in Tallinn and dropped 1.7 square meters in Vilnius.

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