In the first half of this year, the amount of housing loans issued to individuals exceeded EUR 392 million. This is EUR 16 million more than in the first half of 2023, representatives of the Finance Latvia Association reported, citing summarized data on loans issued by Latvian commercial banks. During 2023, the total amount of housing loans issued to individuals amounted to EUR 727 million, and the average loan amount per borrower was almost EUR 44,000. In the first six months of this year, the amount of housing loans issued to individuals amounted to EUR 392 million, which exceeds the data for the same period last year, while the average loan amount per borrower was slightly less – EUR 37,000. Loans issued to companies for the purchase of real estate in the first six months of this year reached EUR 136 million. According to the Association, 35% of the issued amount was used to finance transactions in Riga, 28% in Zemgale (in connection with a certain major transaction or transactions in Bauska Municipality), and 20% in the suburbs of the capital. In Kurzeme, approximately 8% of the total amount allocated for the purchase of real estate was issued to companies, and Tukums Municipality was especially active. Approximately 7% was issued in Vidzeme, and about 1.5% in Latgale. Janis Brazovskis, a member of the board of the Finance Latvia Association, emphasizes that, despite what has been publicly stated that banks in Latvia are reluctant to issue loans, data on issued loans indicate the opposite: the number and total amount of loans issued to individuals has increased. If last year the number of borrowers over six months was 10,000 people, then this year it is more than 12,000 people. If in January of this year the volume of issued loans was about 50 million euros, then in May it had already reached 78 million euros, Brazovskis said.
