RIGA, April 21 (LETA) - Nearly half of Latvians, or 49 percent, expect property prices to rise over the next 12 months, which is by seven percentage points more than a year ago, SEB Banka spokesman Martins Panke said, citing the bank’s latest Housing Price Indicator.
Meanwhile, 24 percent (28 percent a year ago) of respondents in the latest survey believe that property prices will stay unchanged during the next 12 months, six percent (11 percent) expected the prices to drop, and 21 percent had no opinion about housing price dynamics.
The spokesman also noted that the value of the SEB Housing Price Indicator rose to 42.4 points in March 2017, the highest point since the summer of 2014.
Dainis Gaspuitis, a macroeconomics expert at SEB Banka, commented that respondents’ projections of housing price growth are based on expectations of economic growth, which is likely to bring about further price hikes. On the other hand, the supply of real estate for sale is rather limited and people often have difficulties finding reasonably priced housing that would suit their needs.
The survey was conducted by SKDS pollster in March 2017, interviewing 1,003 residents of Latvia, aged 18 to 74.
SEB Banka has been drawing up the Housing Price Index quarterly since 2009.
SEB Banka is the fourth largest bank in Latvia by assets.