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Why investing in Latvia property?
Over the last decade many multinational companies discovered real estate investment opportunities in Western Europe.It is the opinion of many International Investment Banks that these markets are almost saturated thus diminishing the returns on investments. The time is therefore right to look at an alternative - the Real Estate Investment Market of Latvia. Latvia market continues to develop and reached a stable stage, The residential segment has seen the strengthening of sales versus leasing, fact motivated not only by the mortgage loans input but also by the stronger purchasing power of local individuals. Supply has remained constant, while the overall quality has improved considerably. Villa compounds or small blocks of flats brought on the market dwelling units with high standard finishing, large sunny rooms and modern layout.Villas have 200 to 300 square meters of usable space, with gardens that reach 100-300 square meters, while apartments usually provide around 100-150 square meters of usable space. The retail market has a big potential, since all the big retail chains present on the national market announced their plans of expansion in Latvia and throughout the country. Owing it to its stage of development, the Latvia retail market represents a good opportunity for chains of supermarkets/wholesalers and discount stores.
As several major international companies are moving many of their back offices into relatively low cost skilled markets, Latvia has started to benefit from this international trend called Business Process Outsourcing. The Latvian government appears to be determined to do all it can to create an economic environment designed to draw in foreign investors.
Latvia property market presents a lower risk to foreign investors, with membership of the EU and the ability to borrow up to 90% of the value of the property making it a more appealing choice. In Riga, property in some areas rose by around 40%. This has been fueled by strong economic growth and EU entry. Most properties in the historic capital are renovations and there is a limited stock of such buildings. All this suggests that the rises seen in Latvia's property market over recent years are set to continue.
In central Riga the new apartments and houses cost around $1000-$1500 per square meter. The old renovated residential properties can be acquired for $800-$1200 per square meter. Old non refurbished properties have a value of $300-$500 per square meter. In the suburbs the property prices are $250-$350 per square meter.
