We invite you to familiarize yourself with statistical data on how the Latvian real estate market performed in 2020.
- If we compare the number of transactions, in 2020 there was a growth of 1.9%, compared to 2019 (50,839 transactions versus 49,890 the previous year).
The 2020 indicators also exceeded the 2018 figures.
- The spring months were the most challenging, when activity noticeably declined. However, starting from summer, the situation began to improve rapidly.
- Statistics show that the coronavirus pandemic did not "strike" the real estate market. Certainly, some trends changed, for example, demand for private houses increased, and demand for small apartments decreased, but overall, buyers and sellers adapted to the new realities, including the remote (online) model of transaction processing.
- The number of mortgage agreements also decreased. In 2020, 44% of transactions in Latvia were conducted with bank financing involved.
Banks are showing caution and carefully checking their clients, assessing their creditworthiness and financial stability.
It should be noted that the cautious policy of banks is more of a plus than a minus. After all, it was reckless lending in 2008 that led to the global crisis.
With such caution as now, a repeat of this scenario is impossible.
- It is also interesting to observe the geography of transactions. In Riga in 2020, 13,734 real estate purchase transactions were conducted, which is 8.3% less than in 2019.
But if we study the statistics by month, we can see that the largest decline in Riga occurred during the "first lockdown," in April, May, and June.
From August onwards, demand began to increase. Peak values were reached in December - 1,462 transactions. This is the best monthly figure in five years!
In Riga's suburbs, where many budget-class houses are located, transaction growth was 5%.
In Jurmala, there was stability, minus 1.4%, comparing 2020 and 2019. However, of course, the average transaction value in Jurmala decreased, since local buyers are purchasing more affordable property compared to foreigners (who still face difficulties traveling due to restrictions).
Summarizing the above, it should be noted that last year there was a lot of speculation, rumors, and grim forecasts. But the year has ended, all figures have been compiled into tables, and we can see that nothing bad happened. The Latvian real estate market is stable and calm.
Rational properties with normal market value are in demand. Exclusive and premium properties are performing worse due to decreased demand from foreign buyers, but some properties are still finding buyers.
Our opinion remains unchanged - real estate is a reliable asset that allows you to preserve savings and is not subject to the same fluctuations as stocks or gold. Moreover, it is a liquid asset; real estate can be sold and can be mortgaged with a bank.
If you wish to purchase any good real estate property, and individual approach is important to you, if you want to communicate with a real estate agent and lawyer in your native language, then contact our company KOM-INVEST! We will be happy to select a suitable property, answer all your questions, draw your attention to significant details, process the transaction, arrange your residence permit, and manage your real estate.
For more detailed information on obtaining a residence permit in Latvia, see here in different sections.
Have questions? We're waiting for your email or call!
Phone number: +371 29774775
Email: info@kominvest.com