Transaction Statistics in Latvia for 2021

Last year (2021) was one of the best in the past decade. The Land Register recorded 56,502 property transactions. This is 11% more than in the pandemic year (2020), which also stood out with excellent performance.

Growth in Riga was even higher at +13.9%. This is explained by the following reasons.

1) During the pandemic, the state began allocating various subsidies to pay employee salaries and support working capital for businesses. Combined with travel restrictions, shopping limitations, and event cancellations, people accumulated spare funds. Many decided to invest in real estate. Some did so to preserve capital, while others wanted to improve their living conditions-for example, selling a small apartment and buying a larger one where they could comfortably work remotely.

2) Borrowers who had been reliably paying their loans but suffered due to the pandemic-for example, workers in tourism or the restaurant industry-were able to obtain credit holidays. This prevented massive property foreclosures as occurred during the 2007-2009 crisis.

3) Banks compete with each other by reducing interest rates and offering free options (free property appraisals, free insurance). In some cases, loans are available at 1.5% per annum.

4) Programs supporting young families and young professionals are actively operating. Through these programs, you can obtain grants for a down payment, reduced registration fees for property ownership rights, and other benefits.

5) Due to rising construction costs, every buyer understands that it's better to buy today, because tomorrow new housing will be more expensive.

As already mentioned, a total of 56,502 transactions were recorded. Riga ranks first with 15,645 transactions. This is 13.9% more than in 2020.

Second place goes to Riga District (Riga suburbs with many private houses)-10,122 transactions (growth of 18.9%).

In Jurmala, 1,660 transactions were registered (growth of 26.7%).

What's also interesting is that mortgage purchases accounted for approximately 46% of all transactions in Riga and its suburbs. This also indicates a healthy state of the real estate market (without excessive credit dependence as existed in 2007).

Our company KOM-INVEST adds that we recorded 2021 with such indicators. In 2022, there is much uncertainty. This includes the political situation and rising construction costs. We believe that conclusions can only be drawn by late summer.

Much also depends on the segment. If you plan to buy or sell property in a segment that is in demand among local residents, there are no risks and the market is active.

But if it's exclusive property, the situation is worse-demand in this segment is decreasing, and the pool of potential buyers has also shrunk significantly.

If you wish to purchase any good property and value an individual approach, contact our company KOM-INVEST! We will be happy to select a suitable property, answer all your questions, point out important details, arrange the transaction, and manage your real estate.