We present to you an expert opinion prepared by the chairman of the board of the Latvian Association of Builders (Martinš Vanags).
The real estate market situation is currently favorable for investment.
The residential segment is profitable for investment because there is a significant shortage of apartments in Riga.
According to statistics, 72% of Riga residents live in Soviet-era buildings, which are energy-inefficient. With high heating costs, these buildings will become increasingly unattractive. Utility bills in standard apartments and new, energy-efficient apartments differ by a factor of two to three. Therefore, new apartments, regardless of whether they are purchased for personal use or rental, will always be the best choice.
It is also worth noting that due to rising construction costs, which have increased by approximately 40%, construction of a number of new projects in Riga has been suspended.
If these projects resume, they will be built at the "new" prices. This will also affect apartment prices.
There is another aspect that encourages investment in real estate and subsequent rental-the Rental Law adopted last year. Previously, various disputes between tenant and landlord, for example regarding unpaid rent, would drag on for years. Now all disputes are resolved expeditiously. In principle, even if you are unlucky with a tenant who does not pay rent, within three to four months you can achieve their eviction. This is very important from a risk management perspective.
The previous situation discouraged many from investing in apartment purchases, however, now a property owner can feel more protected.
It is known that fewer and fewer people in the world care about owning property. For them, experience and mobility are important, therefore demand for quality rental housing is increasing.
Investment in real estate can be viewed as a safety net that can protect funds from inflation. By investing in real estate, both passive and active income streams are generated.
Passive income arises from the appreciation of real estate value. Active income is generated from renting out apartments. Real estate in the city center will be a reliable investment object for generating both passive and active income. At the same time, some areas outside the city center may develop rapidly and thus offer opportunities for higher returns from passive investments.
As already mentioned, at present, the supply of quality apartments is very limited. This means that apartments currently available on the market are advantageous for buyers.
Based on observations by our company (KOM-INVEST), apartments in new projects with good finishing, thoughtful layout and reasonable utility payments are in very high demand. This applies to both developer offerings and secondary apartments. Therefore, if you are considering a purchase, do not delay!
If you wish to purchase any quality real estate property and individual attention is important to you, contact our company KOM-INVEST! We will be happy to select a suitable property for you, answer all your questions, draw your attention to important details, handle the transaction, and manage your real estate.
Have questions? We are waiting for your email or call!
Phone number: +371 29774775 (Viber, WhatsApp)
Email: info@kominvest.com