Since the emergency situation was declared in Latvia in mid-March, we have been carefully monitoring market trends.
The main sources of information are data on the number of registered purchase and sale transactions per week and per month, data on the number of issued mortgages, expert comments, and analytical materials from banking specialists.
Additionally, you can communicate with potential buyers to understand their mood and motivation. It is precisely this "emotional component" that determines "market sentiment".
Some buyers are in a wait-and-see position.
However, there is a category of buyers who are actively searching for properties and ready to complete transactions. Their logic is quite understandable - "interest rates are low, mortgage conditions are favorable, and a monthly mortgage payment of 300-400 euros does not burden the family budget".
Thanks to the calm sentiment of real estate market participants, and also due to the fact that Latvian families have never had such substantial savings as they do now, real estate prices remain stable with no sharp fluctuations observed.
We also agree with colleagues who believe: "if the situation in the global and Latvian economy improves in summer or September, then the price decline in 2020 will be within 3-5%. If the crisis continues through the end of the year, price decline could reach 10%. With a high degree of probability, we can say that in 2020 the number of transactions compared to 2019 will decrease, and price correction will occur. A natural correction, without catastrophic collapse and panic. It is important to understand that real estate prices do not change with the same dynamics as stock exchange prices".
In conclusion, it should be noted that liquidity and property quality greatly influence price.
Compact apartments, apartments in quality new or renovated buildings, small private houses in suburban areas, and convenient building plots in suburban areas will be in demand and will retain value.
A price decline is expected for apartments in Soviet-era buildings, large apartments, problem properties, and large expensive private houses.
If you wish to purchase a quality real estate property, if personalized attention is important to you, if you want to communicate with a real estate agent and lawyer in your native language, then 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, arrange your residence permit, and manage your property.
For more detailed information about obtaining a residence permit in Latvia, see here in different sections.
Have questions? We look forward to your email or call!
Phone number: +371 29774775
Email: info@kominvest.com
Skype: KOM-INVEST