Analytics, Baltic, Banks, Financial Services, Real Estate

Tallinn followed Riga by the housing affordability index, and Vilnius was third. Housing affordability deteriorated in Tallinn last year, but improved in Riga and Vilnius, said Swedbank economist Linda Vildava told the press.

The economist said that the housing affordability deteriorated in Tallinn because of the steep rise in apartment prices, the situation improved in Vilnius because of increase of wages, and the situation improved in Riga because of the drop in interest rates on housing loans.

Still, Riga was in the sixth place by housing affordability in Latvia. Housing affordability index was higher in Daugavpils, Liepaja, Cesis, Jelgava, Valmiera.

Despite the wage growth, apartment prices in Riga have also risen, reflecting higher demand in separate housing market segments and increase of construction costs.

Vildava also informed that there are about 521 housing transactions a month on average in Riga, 74 transactions in Liepaja, 69 in Daugavpils, 44 in Jelgava, 12 in Valmiera.

The time necessary to save up for the downpayment is nine months in Daugavpils, 11 months in Liepaja, 14 months in Vesis, 16 months in Jelgava and 17 months in Riga and Valmiera.