Russians changed the real estate market Latvia

Experts record new trends in the real estate market in Latvia. After the adoption of amendments to the law on immigration in the country, foreign buyers were added. These are mainly Russians who purchase a business class housing, writes Prian.ru .

The last quarter of 2010 was marked for Latvia by a drop in the market by 3.5%. This happened after the period (which lasted from September 2009 to September 2010), when real estate prices rose by 27%. Experts explained such a rise to the optimistic moods of sellers and buyers and the speculative component. However, this was not enough for the market to continue growth: the lack of macroenomic changes does not help attract institutional investors to Latvia, Baltic Course reports with reference to the study of Century21Baltwest.

Nevertheless, overcoming a price barrier of 550 euros per square meter. m at the end of the spring of 2010, the market entered a new qualitative level, experts believe. The volume of supply increased by 15%, prices returned to the indicators of the pre-crisis of 2003 and 2004.

In the first quarter of 2011, new trends were recorded. On the one hand, the secondary housing market does not develop very actively. Here, prices rose by insignificant 1.5% and amounted to about 570 euros per square meter. m. On the other hand, the segment of the new business class housing is expanding-apartments with 2-3 bedrooms with an area of ​​about 100 square meters. m and a cost of 140 thousand euros at least began to be in great demand. Prices in this sector increased by 10-15% since January 2011 and amounted to about 1.5 thousand euros per square meter. m in Riga, and in Jurmala - 2.4 thousand euros per sq. m.

Experts explain such an increase in prices by the appearance of foreign, mainly Russian, investors, attracted by amendments to the Law on Immigration.