The rise in prices affects the areas of private houses
Due to the high construction costs, the increase in inflation, the increased price of energy resources and the uncertain economic situation, in order to fit into their home construction and maintenance budget, many are currently revising their plans for building a new home, reducing the area of private houses. According to information from Luminor Bank, residents reduce the area of their houses by approximately 10 square meters on average. “Increasing prices of building materials, energy and other things have made residents much more cautious when planning the construction of their house. We have come across cases where clients wanted to revise previous plans and reduce the size of the home. This means that customers carefully and responsibly evaluate their future expenses and do not want to take on bigger obligations than they previously planned, instead of not abandoning the dream of their home and replanning its square footage,” comments Luminor housing lending expert Kaspars Sausais. If in 2021, the average area of a newly built private house was 160 square meters, now it is around 150 square meters (indoor area of the house, excluding garage, shed and terrace area). Clients are downsizing rooms and creating much more compact ancillary spaces. Most of the planned private houses have an area of up to 120 square meters, and it is not uncommon for residents to build private houses of 100 square meters and smaller. Private houses with a total indoor area of 200 square meters or more are now considered a rarity.
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