Are there suitable investment properties in Latvia for large-scale investments? KOM-INVEST has prepared an overview of profitable real estate investment opportunities in Riga and Jurmala for its clients.
In recent years, so-called townhouses for reconstruction in central Riga have been in high demand among foreign investors. These are historic buildings in the city's active business center or in Old Riga. Most of them date from 1900-1910 and are architectural monuments and UNESCO World Heritage sites.
These townhouses had owners before the war, and the buildings were returned to them after Latvia regained independence in 1990. Over the years, most residents in these houses have been relocated. Townhouses that are completely vacant, with no tenants, hold the greatest investment value.
The price of such properties is somewhat higher than the price of buildings that still have a few residents with Soviet housing permits or tenants with long-term lease agreements. However, there are legal methods to vacate tenants from such properties, so purchasing a townhouse that is not completely vacant is not an obstacle to profitable investment.
Very few new projects are built in central Riga due to the lack of available land, and new construction in the center is few and far between. Apartment prices in new central projects range from €3,000 to €7,000 per square meter. Lower prices are found in new buildings located in the peripheral center, while prices in the prestigious business center, Old Riga, and the embassy district are at their highest.
Therefore, fully renovated historic houses are in high demand in these prestigious areas of Riga. Such buildings have a beautiful appearance and are decorated with architectural details that are absent in modern new projects. The wall thickness in old houses is significantly greater than in modern new buildings, which greatly improves sound insulation.
After complete renovation, replacement of floors, utilities, roof, wall insulation, installation of elevators, and new apartment layouts, buildings are created that fully meet the internal specifications of a modern luxury class project. Therefore, apartments in such projects sell well, especially if successful functional layouts are implemented in the design.
Let us roughly calculate the profitability of investing funds in townhouse reconstruction.
For example, you purchase a building in central Riga, let's say, at a price of €500-1,000 per square meter of living space. A complete house renovation to obtain fully finished high-class apartments requires an additional investment of €1,000 per square meter, although this figure may be lower and depends on the complexity of the reconstruction. As a result, the cost of the finished property with premium finishing is approximately €2,000 per square meter.
If the house is well located, the market sale price per square meter can range from €2,500 to €5,000 per square meter. This depends on the status of the building, amenities offered to residents, etc. The implementation period for such projects is 2-3 years. Approximately 15 months are spent on design and construction, and one year on sales.
If the price in the sold project is slightly below market rate, €100-200 per square meter, apartments in such projects begin to be reserved during the reconstruction stage, and by the completion of construction, apartments may be sold at 80%.
The return generated from implementing such a project far exceeds the return obtained from investing in any other commercial properties.
KOM-INVEST is ready to offer its clients options for townhouses for reconstruction. We work individually with each client interested in such investments, organizing meetings with property sellers, lawyers, bank representatives, credit specialists, etc.
To begin cooperation and receive options, please submit your application expressing your desire to purchase a townhouse.
Please indicate your first name, last name, contact phone number, and the expected price range within which you are willing to consider offers.
Upon receipt of your application, a specialist will call you back to clarify details by phone. For more serious work and to receive detailed information, your personal visit to Latvia is necessary, as only general information about the property is provided over the internet.
All properties offered by our company are real. Each property has a complete documentation package, and a legal and technical analysis of the buildings has been conducted. Such offers are not always posted on the website, and our company's task is to ensure a personal meeting between the buyer and seller for negotiations, as well as to provide the buyer with conditions for a safe and profitable transaction.
For more detailed information about how properties are selected and what assistance KOM-INVEST provides to its clients regarding property selection, analysis of investment and technical appeal, and project management, see here.
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Please send your application to info@kominvest.com
Call: +371 29774775
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