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Market report about situation on November 2013



EXPECTATION – 2014 WILL NOT BE "FLAT’’

‘’We expect that the Latvian real estate market in 2014 will not be as “flat” as this year. Firstly, the introduction of the Euro will make the Latvian market safer and more attractive, by removing currency risk. Western investors will begin to look at Latvia as a place for safe real estate investment. As a result of the recession, Latvian real estate prices are about 64% lower than in 2007, when average apartment prices were at their peak. Secondly, next year there is an expected increase in wages, and purchasing power. Market development will naturally follow local consumers' ability to purchase real estate. The number of potential borrowers who, with bank support, will be able to buy homes, will increase accordingly”, explains the CEO of BALSTS, Aigars Zarins.

 

Rental rates for commercial properties may increase by 5 – 10% based on the decline in availability of modern office space. New commercial building projects are not expected sooner than 2015, as developers are reluctant to start construction without the security of significant long-term prelease agreements.

In November, there were apartment price increases of a minimal 0.13 to 0.83% in the Center and the secondary market segment in Jugla, Plavnieki, Purvciems, Vecmilgravis and Imanta. Price drops from 0.4 - 0.71% were observed in Teika and Agenskalns. For November the BALSTS index remains unchanged at 135.

  The number of transactions over the previous month reduced by 11%. This result could be due to changes in the law in issuing residence permits to foreign investors. At present, it is observed that a greater number of transactions concluded directly with local buyers, while foreign customers provide a higher amount of money.

 

 

 

Plašāku informāciju iegūsiet:

BALSTS, Lāčplēša iela 41,

Tālr.: + 371 67076191

Fax: + 371 67076199

info@balsts.lv, www.balsts.lv

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