Leading Latvian analytics publication "Square Meter" analyzed that in 2023 the real estate market in Latvia saw a decline in buyer interest.
The total number of registered transactions was 46,997, which is 11% lower than in 2022, and became the lowest figure in the last ten years.
Experts attribute this to various factors, such as general economic slowdown, high energy costs, and inflation-fighting measures.
Some potential buyers decided to postpone their transaction decisions, awaiting price decreases. Others do not meet bank requirements for obtaining a mortgage loan.
Nevertheless, Latvia's real estate market demonstrates its resilience and viability. Banks continue to issue loans to clients meeting their requirements, and mortgage payers manage their payments. There is no situation like in 2008, when banks seized properties from those who had problems repaying loans.
Riga remains the leader in the number of real estate sales. Last year, 14,172 transactions were registered, which is 6.2% lower than in 2022.
In Riga District and Jurmala, a decline in buyer activity was also noted. Last year, 1,320 properties were sold in Jurmala. This is below the figures for 2022 and 2021 (minus 7.9% and 20.5% respectively), but equals the results of 2020 and 2019 (1,310 and 1,328 transactions respectively). Interestingly, in Jurmala you can also obtain a mortgage to purchase real estate. With the involvement of loans in Jurmala in 2024, 44.2% of transactions were concluded.
In other regions of Latvia, such as Kurzeme, Zemgale, Vidzeme and Daugavpils, a decline in the number of transactions was also noticeable, but they remained above 2018-2019 levels.
Overall, despite negative statistics, Latvia's real estate market is dynamic, but naturally responds to economic and geopolitical circumstances.
From our company's experience, both last year and this year, when selling real estate, it is very important to correctly and objectively assess the situation. In one case, it will be a discount. In another - some bonuses for the buyer. For example, selling an apartment with all furniture and equipment. In one or the other case, a buyer can be found within 3-6 months.
Source:
https://www.varianti.lv/ru/blog/detail/article/9546
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