Market Trends of Luxury Real Estate in Latvia

Market Trends of Luxury Real Estate in Latvia

Last year in the database of Cenu Banka in Latvia there were only three records of transactions with apartments that cost more than a million euros. But the first half of 2018 was more productive. According to the generalized m2 magazine and directly from intermediaries and developers, five million transactions were held.

Local citizens prefer to consider residential properties with a price of up to 2 million euros, but non-residents are interested in more expensive offers. The limiting factor is the situation in the Latvian banking industry with different conditions in relation to non-residents. In order to conduct transactions, foreign clients have to resolve both issues with the opening of an account and the provision of securities on the legality of the origin of their funds. This requires some effort and work.

The market for exclusive housing in Latvia has always been a niche, so it remained. From the part of non-residents, there are only those clients who have some emotional or business connection with Latvia. There are no customers who fall into this country in love immediately and ask the price to the most expensive apartment.

Most of the Latvian apartment exclusivity is presented on the market, not for the first year. The attitude of their owners to the situation is different. Sometimes it is pointless to adjust the price if your offer is unique.

Baltic Sotheby’s International Realty specialists try to contact the owners of the most luxurious real estate in Latvia four or five times a year to exchange opinions with them about the market situation and current prices. If a year ago in the database of our company there were about 80 apartments, for which they asked more than a million euros, now this number has slightly decreased

In the deal with the luxury residential real estate, it is important that both the buyer and the seller had a common language. Both sides of the transaction are people who do not feel the need for funds and have their clear worldview. In case if the worldview coincides, the sale takes place.

There are not so many new luxury apartments with great views. They are gradually sold out. So it was in the complex “Gypsum factory”, “Elizabeth Nam”, so now is the River Breeze Residence. In addition, almost all buyers of such housing are the final buyers who take it for their own needs. In the rental market, these offers practically do not appear after the sale.

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