Rīga remains top in Baltics for housing affordability

Rīga remains the most affordable of the Baltic capitals when it comes to affordable housing according to latest data from Swedbank's regular Housing Affordability Index (HAI).

The third quarter of the year saw the Latvian capital outstripping both Tallinn and Vilnius with a rise in the HAI of 4.7 points, which Swedbank said was caused by "robust wage growth and a continuous decrease in interest rates [that] offset rapid apartment price growth."

The HAI increased to 148.6 in Tallinn, 177.2 in Riga, and 124.8 in Vilnius. 

However, the time needed to save for a down payment decreased by around three weeks in Tallinn and Vilnius to 29.0 and 37.2 months, respectively, while it increased in Riga by two weeks to 24.1 months.

In the nine months of 2017, average apartment transaction prices have grown over 11% in Riga, owing to increasing demand and limited supply.

The full report and methodology used to determine the HAI can be read HERE

 

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