According to a survey conducted by research and consulting company "Kantar" in collaboration with bank "SEB", 23% of Latvians plan to change their residence within the next year. Almost 30% of them will choose real estate in Riga or its surroundings.
Around 12% of respondents plan to purchase new housing in the near future, while 6% plan to change their place of residence and will rent new housing. At the same time, 4% of those surveyed have not yet decided whether to buy or rent an apartment, but they also have plans to change their place of residence.
It can be noted that the thinking of Latvians differs from the European approach - it is better to buy one's own home rather than rent.
However, much depends on income. According to the survey, residents aged 30 to 40, families with children, and those whose income exceeds 1000 euros per family member are most likely to note that they will purchase new housing. In turn, residents aged 18 to 30 are interested in renting.
Almost 40% of survey participants will search for apartments in new developments. Another 30% in standard residential buildings and historic buildings.
It is clear that a new project can provide the buyer with more comfortable and well-developed infrastructure.
There is also growing demand for apartments in quality renovated buildings.
The main reasons why people choose new developments are warranty and longer service life, confidence that new projects are better and more comfortable than old ones, they use high-quality building materials, and they are typically more energy-efficient and consequently have lower heating costs.
Interestingly, a building with a high energy efficiency class provides not only a healthier climate in the home and reduced bills.
There is also the so-called "Green Loan" available here (for local residents) with more favorable financing terms. This loan is intended not only for apartments in new projects, but also for renovated buildings and private houses.
It is in the private house segment that significant growth is observed - financing volume in this segment has increased almost twofold, and the number of transactions has grown by more than 60%.
As for geography, when searching for a new place of residence, most will choose the capital or its surroundings.
Riga is chosen by those who already have work there or who are looking for work. Newcomers are confident that higher salaries can be earned in the capital.
Other reasons include attraction to cultural life or family circumstances.
On the other hand, the surroundings of Riga attract people with nature, fresh air and tranquility, as well as prices - apartments outside the capital are cheaper. Another category of those choosing housing in the Riga region are families with children who want to buy or build a house so their children can grow up closer to nature.
The survey results coincide with SEB bank data - more than 80% of funds allocated for housing purchases in the first 9 months of this year were used in Riga and its surroundings - this is the most active region.
In the opinion of our company, such research is very useful for investors, as it helps understand which housing is in greatest demand among the local population.
If you buy an apartment in a new development and furnish it - renting it out will be very easy. Or even buy an apartment at the construction stage and then resell it.
If you wish to purchase any good real estate property, and individual attention is important to you, if you want to communicate with a realtor and lawyer in your native language, contact our company KOM-INVEST! We will be happy to select a suitable property, answer all your questions, draw attention to significant details, arrange the transaction, arrange a residence permit, and manage your real estate.
For more detailed information about obtaining a residence permit in Latvia, see here in different sections.
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