Last year, many analysts noted that the number of apartments in new construction projects in Riga was declining rapidly. By mid-autumn, Riga was experiencing a shortage of fully completed new middle-class apartments that could be occupied immediately after purchase.
According to calculations by the real estate company Colliers, in October 2022, the primary market in Riga and its surroundings offered 140 such options.
This is twice less than the volume available on the primary market in June 2022. At the same time, in the third quarter of 2022, the supply of apartments still under construction that could be reserved increased - 1,237 compared to 982 in the second quarter. This circumstance provides hope that after the completion of construction projects, the supply on the primary market will increase somewhat.
By mid-fourth quarter 2022, Riga and its surroundings on the primary market offered 2,680 new apartments of all classes: budget, middle, business, and premium. Of these, 830 were fully completed, and 1,850 were still under construction. Based on current sales rates, it would take less than two years to sell all available completed and under-construction apartments. For the Latvian real estate market, this is a small volume.
However, given that little new housing is being constructed, this creates opportunities for investors. If you purchase an apartment in a popular new project, its value will only increase.
Furthermore, such an apartment can be rented out. On average, rental income is 4-6% per year.
If you wish to purchase any good real estate property and value a personalized approach, contact our company KOM-INVEST! We will be happy to select a suitable property, answer all your questions, draw your attention to important details, complete the transaction, and manage your property.
Have questions? We look forward to your email or call!
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Email: info@kominvest.com