The most active segment of the housing market is apartments in the center of Riga, where the demand among foreigners is relatively higher. The opportunity to obtain a residence permit through the purchase of real estate began to attract an increasing number of buyers. Apartments in Riga are usually bought for themselves or for rent. How to get from Russia For many Russian real estate buyers, the main advantage is the proximity of Riga – the flight from Moscow or St. Petersburg will take no more than two hours. From the capital, direct flights to Riga are operated by Utair, Aeroflot, Transaero airlines, as well as the Latvian air carrier Air Baltic. Saint Petersburg and Riga are connected by direct flights of Rossiya and Air Baltic airlines. Market history Until 2007, there was a significant increase in real estate prices in Riga, as well as in the whole of Latvia. The main reason was the rapid spread of cheap mortgage loans in Latvia. Thus, from 2004 to 2007, prices in Riga rose from 323 euros to 1194 euros per 1 sq. m. The country's authorities have taken a number of measures to cool the real estate market, overheated by cheap loans: taxes on registration of property rights have been raised, lending has become less affordable, and additional taxes on speculative transactions have been introduced. As a result, in 2008 the number of transactions decreased significantly compared to 2007, and in the second half of 2007 prices began to fall. In the summer of 2010, the Latvian authorities, in an effort to bring the country out of the crisis, gave home buyers the opportunity to obtain a residence permit. To obtain a residence permit for a period of five years in Latvia, a foreigner must purchase real estate in the amount of 100,000 lats (approximately 143,000 euros) in Riga, Riga region, Jurmala or other major cities of Latvia. A noticeable revival in the market and a new wave of price growth has been observed since February 2011. Latvian real estate agencies have noted a significant increase in the number of transactions involving Russian buyers specifically for the purpose of obtaining a residence permit. In the first 8 months of 2011, housing prices in Riga increased by about 10%. The real estate market today Traditionally, buyers from Russia purchase apartments in the central districts of Riga - in the Old Town, the quiet center or the "embassy districts" in new projects or renovated houses. This is where you can find the largest number of offers. Now the overall activity in the real estate market of the capital is higher than a year ago, but there is no significant increase in demand. Housing located in the city center will always remain in price. The most expensive offers are located in the Old Town of Riga. The interest of foreigners in apartments in this area has led to an increase in supply and to an increase in the cost of facilities. However, demand is currently exceeding supply. The situation in other districts of Riga is significantly different. HomesOverseas.ru
There is also a daily train from Moscow and St. Petersburg to Riga, the journey time will be 12-16 hours. Many Russians travel to Riga by car.
The economy of Riga reacted quickly to the changes during the crisis, and real estate fell in price. Having reached the bottom in mid-2009, the housing market began to recover gradually.
In 2010, the average price of real estate in Riga rose by 24.7%, which made it possible to name the Latvian capital the world leader in terms of price growth. Nevertheless, in late 2010 and early 2011, the price growth stopped.
Today, prices for apartments in Riga start from 800 and reach up to 2000 euros per 1 sq. m. m depending on the location. New projects or objects in renovated houses cost 2000-3500 euros per sq. m, prices for luxury housing reach 3000-5000 euros per 1 sq. m. Compared with the popular Jurmala, where prices start from 2000 euros, housing in Riga is cheaper.
It is not uncommon for real estate to be purchased for rent. Renting a two-room apartment in the center brings 500-600 euros per month. A consistently high level of demand is noted for renting high-quality real estate.
An overview of the real estate market of Riga
It is Riga Latvia is considered the primary real estate market. The cost of housing in the Latvian capital increased moderately and rapidly rising prices, cannot be expected.
05.12.2011
Author: Maria Cooper
533
The main volume of the housing market is accounted for by Latvian citizens, while Russian citizens make more purchases of real estate among foreigners in Riga, and interest is constantly growing from residents of Moscow and St. Petersburg.
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