After a significant drop in demand last year, Merks mājas sees positive trends in the housing market in the first and second quarters of 2024. Pressure due to rising interest rates and inflation has eased, increasing interest in purchasing new apartments. The situation on the market is explained by the head of the sales department of Merks mājas, Grigory Baratashvili. In the second half of last year, we observed a significant decrease in demand and customer activity. This is because rising interest rates have made mortgages less affordable and inflation has impacted purchasing power, which in turn has affected people's property purchasing decisions. However, interest in real estate remained, and in the first half of this year we see that interest is returning and even beginning to grow, at the same time, final decisions are made carefully and carefully or are postponed until more favorable conditions, in the opinion of clients, occur. This year we are seeing positive trends in demand for the purchase of ready-made apartments. The reduction in the EURIBOR interest rate should have a positive impact on the real estate market, making its purchase more affordable and stimulating buyer demand. At the same time, concerns about unpredictable EURIBOR changes are keeping potential buyers from reserving apartments in unfinished projects that are still under construction. Data on the housing affordability index published by Swedbank for the first quarter of 2024 shows that a household in Riga, allocating no more than 30% of family income to a mortgage loan, can afford an apartment with an area of about 82 m². For comparison, in Tallinn and Vilnius this figure is 54 m² and 50 m², respectively. These data suggest that housing affordability in Riga in terms of prices is relatively higher, potentially stimulating market activity. In addition, Swedbank client data for April indicates that wage growth remains high enough to further improve housing affordability. Lower interest rates and improved consumer sentiment provide optimism for further improvement in market activity. The impact on the market of changes in EURIBOR interest rates may have a delayed effect. Although lower interest rates make buying property more affordable, the market may not respond immediately. However, over time, we expect these changes to have a positive impact on buyer demand and encourage market activity. Currently, the housing market is particularly interested in two- and three-room apartments. Buyers pay great attention to the location of the project, the area and layout of the premises, as well as the quality of finishing. Aspects of apartment and building sustainability, spacious balconies and green areas around residential buildings are increasingly valued. In addition, before deciding to purchase a new property, buyers analyze whether it is also a potentially good investment property. Neighborhood development plans, such as the construction of bicycle paths and the installation of electric vehicle charging stations, are also important. Buyers also appreciate apartments with good access to public transport, allowing convenient movement around the city without the need for a personal car. Proximity to grocery stores, pharmacies, schools and medical centers is also important. Proximity to work and nearby entertainment and recreational amenities, such as health and cultural centers and restaurants, are also important factors influencing buyer decisions. Overall, these trends indicate that buyers are looking for housing that offers not only a comfortable and high-quality place to live, but also developed infrastructure, opportunities to meet everyday needs and recreation.