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WILL THE NEXT REAL ESTATE CRISIS IN LATVIA BE ALREADY IN 2014?


Implementation of the euro in Estonia has a negative impact on the real estate market. In 2014 is planned to implement the euro in Latvia. Do we face the same issues as our neighbor?

When Estonia joined the euro zone the average number of transactions in the 1st quarter of 2011 decreased by 10%, compared to 1st quarter of 2010, and the average turnover for real estate companies also decreased by 10%. Adoption of the euro has rocked the real estate market. The market is temporarily decline, opposed the expected influx of investors. As mentioned by Aigars Zarins in quarterly organized event "Friends of BALSTS breakfast” with representatives of leading banks of Latvia, through the good handling Latvia can avoid these issues, because the real estate the market have moved to  euro since 2004, there will be no problem with adaptation, as well, based on the experience of neighboring countries, we can prevent other resulting issues from the euro changeover.

 

            At company's BALSTS management meeting with experts of the Europe’s largest real estate organizations, it was concluded that Latvia, despite the previous month's activity of foreigners, hasn't attracted the interest of The European Union with the sharpest property price rise news. To succeed in attracting foreign attention to Latvia, is needed governments support. Only carefully designed and stable taxation policy, as well as advertising policy focused on the Europe Union Member States, can encourage potential investors to finance projects in Latvia.

 

            “Spring has set in motion the local real estate market. Obviously, increases people's interest for the acquisition of property and for the rent. Already, locals and residents of neighboring Russia begin to reserve a house in Jurmala for the summer season. So far, rental prices have not risen, but the end of the heating season and strong interest can contribute to price increase, especially in Jurmala. The most demanded living spaces in the center of Riga is 3 room apartments for a good price within the limits from 200 to 300 LVL per month.

 

            In the segment of the series-type apartments prices have remained constant. The average price of apartments in residential districts since the beginning of 2011 is 645 EUR / m 2, reflecting the stabilization of the market,” situation in the real estate market in March explains Aigars Zarins.

 

 

More information you will get:

BALSTS, Audeju Street 8,

Mob.: + 371 67076191

Fax: + 371 67076199

info@balsts.lv, www.balsts.lv

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