Riga, March 16 (LETA) - Last year, almost one in three housing loans issued by SEB Banka was for the purchase or construction of housing outside Riga and Pieriga region, and the financing granted in the regions last year was 46 percent higher than in 2024, the bank informed LETA.

The highest demand was in Ogre, Sigulda, Cesis and Valmiera municipalities, while the lowest activity remains in Latgale, where the amount of allocated funding is significantly lower than in other regions.

Overall, the volume of loans granted by SEB Banka for the purchase or construction of a home last year was almost 40 percent higher than in 2024, while the number of transactions increased by more than a quarter.

Maris Opincans, Head of Private Financing Department at SEB Banka, explained that the housing market in Latvia and especially in Riga has returned to its growth trajectory. The turning point was spring 2025, when demand for housing and mortgage loans increased significantly.

According to Opincans, last year rental prices rose faster than purchase prices, and society has adjusted to geopolitical risks that previously deterred people from investing in real estate. The stabilization of EURIBOR rates also played a role.

Opincans explained that many people who had previously postponed buying property decided last year that the time was right to buy, renovate or build. SEB Banka forecasts that lending activity will continue in 2026, although the rate of growth could be more moderate compared to the very rapid breakthrough in 2025.

Of the total financing in 2025, around 44 percent will be granted in Riga, around 27 percent in Pieriga and just under 30 percent in regions outside Riga and Pieriga region. This proportion has remained stable for several years, but in 2025 it is the regions that will see a strong growth rate, SEB Banka informed.

The leading regions are Ogre, Sigulda, Cesis and Valmiera, which together account for about a quarter of all funding outside Riga and Pieriga region, the bank said. Compared to 2024, the amount of funding allocated in these regions has increased by around 59 percent.

Vidzeme has the highest regional funding volume, with Valmiera, Cesis and Sigulda municipalities dominating and accounting for a significant share of the total demand. In Zemgale, Jelgava municipality shows a stable activity. In Kurzeme, the highest demand remains in Liepaja, while in Latgale demand is still the lowest, with only a few loans granted in several municipalities.

Of all the financing granted outside Riga and Pieriga region, around 30 percent goes to the larger cities of Liepaja, Jelgava, Jurmala, Daugavpils, Rezekne and Ventspils. Liepaja, Jelgava and Jurmala stand out in particular, where demand is several times higher than in other regional cities.

Analyzing the data for 2025, it can be seen that the choice of buyers differs significantly in different regions of Latvia, SEB Banka pointed out. In Riga, apartments in new projects and energy-efficient objects dominate - they are the most frequent type of mortgage both in new buildings and on the secondary market. Buyers prefer compact, modern apartments with low maintenance costs, and green loans are very popular here.

In the big cities - Liepaja, Jelgava, Valmiera, Jurmala and others - apartments are still the main purchases, but demand for private houses and terraced houses is growing rapidly - especially in the suburbs.

In the regions, private houses, often with land plots, are the main choice, informed SEB Banka. Apartments are purchased less frequently and mainly in small towns or in situations where property is bought for children or parents.

As reported, SEB Group made a profit of EUR 85.9 million in Latvia in 2025, down 39.4 percent from 2024.

SEB Banka is the second largest bank in Latvia by assets, according to the Bank of Latvia.