RIGA, Nov 19 (LETA) - In the first three quarters of this year, Swedbank granted loans in the amount of EUR 73.3 million for the purchase and construction of housing in the regions, which is 32 percent more compared to the same period last year, the bank informed LETA.

In the first three quarters of this year, mortgage lending activity in the regions continued to grow, Swedbank data show. In total, almost 1,000 families have secured a new home in the regions during this period, which is 22 percent more than a year ago.

New and energy-efficient private homes are becoming more and more popular, and this trend is also visible in the regional financing data, Swedbank informs. The average loan amount for the construction of a brand new house increased from EUR 136,000 to EUR 147,000 over the year.

The average amount needed to buy an apartment in the regions is also rising steadily, from EUR 42,600 last year to EUR 46,300 this year. The average bank interest rate added to the purchase of apartments in the regions is currently around 1.82 percent, while for the construction of brand new houses it is 1.6 percent.

More than half or 58 percent of all loans issued in the regions are guaranteed by the Development Finance Institution Altum. Most of these clients are families with children (46 percent), while young professionals and soldiers of the National Armed Forces benefit from the support less frequently - 10 percent and 2 percent respectively.

Although lending activity is generally increasing across Latvia, some regions stand out in particular, Swedbank has concluded. This year, the highest number of transactions was recorded in Jelgava and its region, followed by Ogre and Liepaja, together with the South Kurzeme region. Sigulda, Daugavpils, Ventspils and Valmiera are not far behind.

At the same time, a number of Latgale and some Vidzeme regions continue to show lower activity, influenced by both slower supply of new projects and lower household incomes, the bank explains. The lowest number of mortgage loans this year has been issued in Valka, Ludza, Varaklani and Kraslava regions.

Overall, changes in real estate prices reflect the supply of real estate and economic activity in the region. According to the Land Registry, for example, in Valmiera the average price in the apartment segment this year is EUR 930 per square meter, in Jelgava the average price is EUR 828 per square meter, in Ogre and Ogre region it is EUR 827 per square meter, while in Daugavpils the average price was EUR 300 per square meter.

In the regions, mortgage loans are most often taken out by people with stable but medium incomes. Swedbank data show that 65 percent of customers borrow without a co-borrower, and this group is dominated by people with a net monthly income of EUR 1000-2000. 35 percent of customers choose to take out a loan with a co-borrower. These are cases where families are planning larger projects, such as the construction of completely new houses, and therefore require larger loan amounts.

Swedbank is the largest bank in Latvia in terms of assets.