We present to your attention an article about the real estate market in Jurmala. Jurmala is a resort city on the coast of the Gulf of Riga, 20 minutes drive from Riga. It offers beautiful air, the opportunity to be in nature, and at the same time-developed infrastructure.
Real estate here is in demand. The situation is such that there is even a shortage of apartments in new projects with two bedrooms, priced up to 300,000 euros.
In 2021, the main buyers in Jurmala were local residents. Properties in the 100,000 - 250,000 euro segment were in demand. In the upper price range, apartments interest both wealthy local buyers and foreign buyers seeking to obtain a residence permit.
The main preferences are seaside location, the closer part of Jurmala, and two bedrooms. At the moment, such offers are almost unavailable. Options remain only in Dubulti (on the river side), Melluzi, Asari (i.e., the far part of Jurmala).
Even fewer options if the buyer is interested in the legal status of "apartment ownership" rather than "apartments". Most residential complexes in Jurmala are "guest houses". In this case, the property tax is slightly higher. There are only a few residential houses, and these are already on the secondary market (not new apartments from developers).
Another nuance is related to apartment size. If previously normal area was 120 - 130 sq.m., now more compact apartments are preferred. If two bedrooms, then 80-90 sq.m. For example, in the project at Madonas 5 (built in 2006), an apartment of 90 sq.m. will have one bedroom. This does not meet the demands of modern buyers.
Some real estate specialists believe that if new projects are not started in the next six months, then in one and a half to two years, primary apartments will be almost unavailable.
Construction of new projects is complicated by the fact that construction costs have increased (on average, by 20-30%). Investors, entering construction of a project, plan one cost per square meter, but after completion, they get another. Then the question arises whether they will be able to recover the invested funds after selling all apartments.
For example, a new building is currently being constructed on Dzintaru Prospekt, apartments in which the developer planned to sell for 4,000 euros per sq.m. with full finishing. But even such a price will not cover increased construction costs. A possible solution is to market at high prices. If buyers are not ready to pay such money, then the option remains to rent it out.
If we follow the theory of supply and demand, when the number of apartments decreases and demand remains stable, real estate should become more expensive. But this is not entirely true. The purchasing power of Jurmala buyers is limited. In addition, they have a correct assessment and understanding of the situation (how much they are willing to pay for the opportunity to live in Jurmala).
The client profile is different, not the same as ten years ago. Foreign buyers are aged 35-50 years old. They relocate to Jurmala with family and children, and choose housing reasonably, without excesses.
It is easy to work with those foreign clients who have been to Latvia and have an idea of prices and what happens here.
Conversely-those who haven't been often assume that the real estate market in Jurmala is weak, that large discounts can be obtained. This is not so! A quality property in a good location will be in demand. No one will offer a foreign buyer large discounts, since it is easy to find another buyer.
Finally, let us dispel one more myth. There are rumors that nothing sells in Jurmala, that clients from Russia are selling their property… This is a myth, not reality! Our company KOM-INVEST agrees that only rare clients put their apartments up for sale. And this has no effect on the rest of the real estate market!
Source: https://www.varianti.lv/ru/novosty-i-analytika/7105-%22doroga-lozhka-k-obedu!%22
If you are interested in Jurmala and understand the value of this place-contact us, we will be happy to select options for you!
If you wish to purchase any good property and individual approach is important to you, if you want to communicate with a realtor and lawyer in your native language, then contact our company KOM-INVEST! We will be happy to select a suitable property, answer all questions, draw attention to significant nuances, complete the transaction, arrange your residence permit while this program is still active, and manage your property.
For more detailed information about obtaining a residence permit in Latvia, see here in different sections.
Have questions? We are waiting for your letter or call!
Phone number: +371 29774775 (Viber, WhatsApp)
Email: info@kominvest.com