Since the beginning of last year, Latvia has experienced high inflation rates, utility prices are rising, and construction costs are increasing. This affects not only everyday life but also the real estate market.
On one hand, demand for new housing is growing. Many people want to live in modern, energy-efficient homes. According to statistics from Luminor bank, the volume of loans in new projects increased by 80%.
On the other hand, due to rising construction costs, fewer and fewer new homes are being built. Developers cannot forecast material expenses two or three years in advance, cannot predict delivery timelines, and as a result, cannot calculate an accurate business model.
Given such uncertainty, developers are completing already-started projects while postponing entirely new projects.
Very soon we will see that the number of offerings in new homes (from developers) will decrease.
All of this affects the secondary housing market (i.e., apartments in standard multi-family buildings, as well as apartments in "new projects" built in the last 10-15 years). In a normal situation, older housing loses quality with each year and should cost less.
But now, the volume of offerings is limited, and many buyers are considering secondary housing options. Technical condition and finishes are particularly important. Rising construction costs affect not only large developers but also ordinary people planning renovations in their apartments. Major renovations cost money too!
Therefore, if you have the opportunity to buy an apartment in a new building, it is best to do so now. Tomorrow, this project will already be sold out!
If you are planning to sell an apartment, now is a very favorable moment, as the real estate market is very active!
If you wish to purchase or sell any quality property, and personalized service is important to you, contact our company KOM-INVEST! We will be happy to find a suitable property for you, answer all your questions, draw attention to significant details, complete the transaction, and manage your real estate.
Have questions? We await your email or call!
Phone number: +371 29774775 (Viber, WhatsApp)
Email: info@kominvest.com