a
Print
version

Expectations and Reality in the Latvian Real Estate Market

The pandemic has affected the Latvian real estate market. But how? Have sales sunk or not? Have the prices of apartments in Riga, Jurmala and other cities collapsed? Our colleagues from the Latvian magazine "Square Meter" and the web portal Varianti.lv have studied the statistics of the Land Register of Latvia and shared conclusions.

The article was published by our colleagues in the first half of February 2021.

Negative Forecasts

The first wave of the Covid-19 pandemic and the emergency regime began in Latvia in the spring of 2020, which have generated a lot of speculation about the future of Latvian real estate. The rumors primarily fueled by those, who tried to take advantage of the arised uncertainty. Since April, they had been aggressively processing both private sellers of interesting residential properties and developers in order to get them to reduce prices by 30-50%, appealling to the fears: here is the money, agree to the offer now, soon no one will give it to you, there will be nobody to buy anything!

However, dramatization helped few of them: some owners succumbed to artificial pressure. And since the summer, the market has started to return to its natural state.

The market survived without the vaccine

The analysis of the Land Register statistics conducted by the magazine "Square Meter" and the portal Varianti.lv have shown that 50,839 contracts for the purchase of real estate for various purposes were registered in Latvia in 2020. It is at 949 points, or 1.9% higher than a year earlier.

An elementary comparison of the last six years shows that the coronavirus pandemic has not had any dramatic impact on the Latvian real estate market. Although the departure of employees of state structures for remote work has created certain difficulties in the functioning of the market, including in the execution of transactions, primarily in large cities. It took some time for buyers and sellers to get used to their new relationships with banks, notaries, and Land Registry judges.

They're used to it. In the last three months of 2020, sales were at their highest in many of Latvia's largest localities. And even the repeated COVID-restrictions introduced since winter did not prevent the progress.

Mortgages Are Not for Everyone

What has become smaller in the market is the number of new mortgage contracts. In 2020, 44.1% of transactions took place in Latvia with the use of borrowed money. This is the lowest rate in the past six years.

Banks were too selective in their approach to potential borrowers last year. Entire lists of sectors of the national economy that were most affected by Covid-19 were created – and credit institutions began to be wary of them. I had to cope without bank co-financing.

Also read: Residence Permit by Real Estate Purchase. 27 Countries

Riga Missed Out on Buyers

Interesting fact: the major cities did not reach the indicators of 2019. But sales grew around them.

In Riga, 13,734 real estate purchase transactions were recorded in 2020, which is 8.3%, or 1,248 units less than in 2019. If you study the statistics of 2020 by month and compare it with the previous year, it turns out that the market of the capital city did not pick up buyers during the first lockdown from April to June.

Since August, buyers in Riga have once again cheered up, and in December, 1,462 contracts were registered! This is the best monthly indicator in the past five years. We can assume that there was simply not enough time to catch up with the spring decline in Riga.

Real Estate for Self-Isolation

Although self-isolation in the nature feels nicer than in the city, but in the atmosphere of the rampant coronavirus it is double proved by active buyers around the capital city.

The Land Register of the Riga district records the sale of 8,513 properties – 406 or 5% more than in 2019.

Jurmala proved to be an island of stability: 1,310 transactions for the year, only 18 sales (1.4%) less than in 2019.

For some buyers, housing in the main resort of Latvia becomes the second, or even the third object in the property. Many people make transactions with their own funds. The share of Jurmala mortgage transactions was 34% in 2020.

The best year in recent years was 2020 for the real estate market of Rezekne and the region assigned to it, including Balvi and Ludze. There were 3,384 purchase agreements registered here, which is 13% more than in 2019, and 17.4% more than in 2018.

A significant increase was noted in the district of Zemgale (Jelgava, Ogre, Valmiera, Ogre, Tukums). Last year, there were 8,591 real estate sales here, and 7,720 in 2019. And this is against the background of a decrease in mortgage requests.

In the Vidzeme region (Valmiera, Cesis, Gulbene, Valka, Ainazhi, etc.), the activity of buyers increased by 8.7% compared to 2019 and by 19.4% since 2018. At the same time, the economic center of this region, Valmiera, missed 21% of sales. And not so much because of the fall in demand, but because of the sharp shortage of supply, which has been talked about for several years.

Here's what you can buy in Latvia right now
Flat for 170 000 euro in Latvia
170 000 €
Flat in Latvia
1980 sq.m 12 10 2
A unique property to turn into a pearl - a mansion that draws attention with its simpleness opportunities for a boarding house or as an investment object. A charming terrace with large sunlit windows facing the park. Historic building. Basement with arches. Park area 1 ha, building 1980 m2. The oldest data about the manor is in November 1404....
Habita International Estates Ltd
House for 800 000 euro in Jurmala, Latvia
800 000 €
House in Jurmala, Latvia
284 sq.m 4 4
Residence
For sale a new, modern house on the first line from the sea in a quiet place of Jurmala-Asari.On the ground floor there is a convenient entrance area, a utility room, a guest bathroom, a living room combined with a kitchen and a seating area, as well as access to an outdoor terrace.On the second floor of the house there are three bedrooms, each...
VIP Real
Flat for 695 000 euro in Jurmala, Latvia
695 000 €
Flat in Jurmala, Latvia
124 sq.m 3 2
Residence
Apartment for sale in the exclusive residential complex "Villa Lido" in the heart of the resort town of Jurmala - in Dzintari, opposite the concert hall "Dzintari".The apartment has a spacious living room, 2 isolated bedrooms, 2 bathrooms and 2 terraces. The project has a well-maintained courtyard, as well as round-the-clock residential...
VIP Real
Flat for 335 420 euro in Jurmala, Latvia
335 420 €
Flat in Jurmala, Latvia
108 sq.m 3 2
Residence
We offer for sale an apartment in a new project "ELEGIA" in the most prestigious area of Bulduri, the first line from the sea! The apartment has a living room combined with a kitchen and a dining area, 2 isolated bedrooms, 2 bathrooms. The apartment is fully finished, equipped with household appliances and partially furnished! The presence of...
VIP Real
Flat for 312 120 euro in Bulduri, Latvia
312 120 €
Flat in Bulduri, Latvia
87 sq.m 3 2 2
Residence
Suitable for obtaining a Residence Permit in Latvia! Ergonomic 3-room apartment with windows to the seaside, in the residential complex “Elegija”: windows in the livingroom and one bedroom face a seaside; livingroom with separate kitchen zone; parking available – 12 000 EUR ; just 200 meters from the sea; the apartment has...
ART Balt's Estate
Flat for 500 000 euro in Jurmala, Latvia
500 000 €
Flat in Jurmala, Latvia
145 sq.m 4 3
Residence
We offer to buy a 3-room apartment in Jurmala, in Pumpuri, on Pieyuras 1a street. Apartment with fireplace and sea view, with a total area of 152 sq.m. The layout of the apartment includes a spacious living room with a fireplace, a kitchen, a guest toilet, a spacious parent bedroom with its own bathroom, 2 children's bedrooms. There is a...
VIP Real
Flat for 179 000 euro in Jurmala, Latvia
179 000 €
Flat in Jurmala, Latvia
73 sq.m 3 2
We offer apartments by the river in Dzintari on Oshu Street 2.38 apartments (with 1-3 rooms) are available in the project. On the ground floor there are apartments with terraces and land plots. On the second floor there are apartments with balconies. There is a ground parking.The apartments have high-quality finishes, panoramic Windows.Yomas...
VIP Real
Apartment for 110 000 euro in Riga, Latvia
110 000 €
Apartment in Riga, Latvia
53 sq.m 2 1 1
Ezerjugla is located at Murjāņu street 70, Riga. It is a residential complex of eight four-story buildings, located on the shore of Lake Jugra, one of the greenest areas in Riga, where you can experience close contact with nature at the end of a busy day. Ezerjuglas apartments are not furnished, the picture shows the interior design, which can...
Habita International Estates Ltd
Flat for 405 000 euro in Riga, Latvia
405 000 €
Flat in Riga, Latvia
115 sq.m 3
Residence
An elegant apartment with 3 rooms, located in the restored part of Kalpaka Park Residence. There is a luxurious salon, two separate bathrooms, fully equipped kitchen, built-in wardrobes, elegant fireplace, balcony on the yard side. In one of the rooms there is an original neo-rococo salon. The image of the room is made up by combined means of...
Mercury Group
Flat for 269 000 euro in Jurmala, Latvia
269 000 €
Flat in Jurmala, Latvia
94 sq.m 3 1
Residence
An apartment is offered for sale 200 meters from the sea in Dzintari, Jurmala.The apartment has a spacious corridor with a large built-in wardrobe, a separate kitchen with a dining area, a living room with access to the terrace, two bedrooms and a spacious bathroom. The house has a ground Parking with passes for the residents of the house.Yomas...
VIP Real
House for 1 950 000 euro in Jurmala, Latvia
1 950 000 €
House in Jurmala, Latvia
600 sq.m 6 5
Residence
An exclusive two–storey mansion is located 200 meters from the sea in the very center of Jurmala - Dzintari. The area of the main house is 430 sq.m., exclusive finishing and furnishing in a classic style. On the ground floor there is a hall, an office, a fireplace room, a kitchen combined with a dining room, a bathroom, a sauna, a swimming pool,...
VIP Real
Flat for 590 000 euro in Riga, Latvia
590 000 €
Flat in Riga, Latvia
114 sq.m 3 2 3
Residence
We offer for sale luxury spacious 2 level apartment in an exclusive project on Rupniecibas street. Résidence is located in the “quiet centre of Riga, which is famous throughout Europe for its unique architecture and atmosphere. This area is home to a range of exceptional restaurants and inviting coffee shops. There are well-kept gardens and...
Mercury Group
Flat for 380 000 euro in Riga, Latvia
380 000 €
Flat in Riga, Latvia
96 sq.m 3 2 3
Residence
For sale is offered nice and spacious apartment in Riga prestigious center in the concept premium class home on Rūpniecības Street. Great location and developed infrastructure: everything that you need for comfortable living located in walking distance from the house (grocery shops, offices, parks etc.). Modern and bright residence with...
Mercury Group
Flat for 370 000 euro in Riga, Latvia
370 000 €
Flat in Riga, Latvia
203 sq.m 6
Residence
Exclusive, spacious apartment in the prestigious district of Riga - Silent Centre is offered for sale. The apartment with a beautiful design is located in the embassy district at the corner of Dzirnavu and Antonijas streets. Excellent layout, ceiling height - 3,5 m, good repair, fully furnished and equipped with all necessary appliances....
Mercury Group
Apartment for 137 000 euro in Riga, Latvia
137 000 €
Apartment in Riga, Latvia
103 sq.m 5 3 2
Exclusive apartment for sale in Ziepniekalni. In the new project. Comfortable and modern layout. Apartment on two floors, with wooden stairs, on which anti-slip composites are installed on each step. 5 rooms, 3 of which are bedrooms. A studio-type kitchen, which is separated from one side by the stairs and from the other by a half-wall with a...
Habita International Estates Ltd
Flat for 445 000 euro in Riga, Latvia
445 000 €
Flat in Riga, Latvia
114 sq.m 3 2 2
Beautiful apartment for sale in the new project "Philosophers Residence" with quality finishing, furniture and repair. Characteristics of the apartment: - living area 96 m2 + terrace 16 m2 - 3-room apartment - The apartment is equipped with premium appliances, furniture and quality renovation for a comfortable daily life....
Metropolis Riga
Flat for 478 000 euro in Riga, Latvia
478 000 €
Flat in Riga, Latvia
132 sq.m 4
Residence
We offer for sale an exclusive 3-bedroom apartment with fully equipped kitchen in a new luxury project in Riga with a wonderful panoramic view of the Old Town. The quarter of Kliversala is located in the most picturesque part of the centre of Riga, surrounded by the Daugava and Agenskalns Bay. Along the coast, there is a promenade for...
Mercury Group
House for 400 000 euro in Riga, Latvia
400 000 €
House in Riga, Latvia
351 sq.m 6
Residence
A beautiful property with an outdoor pool is for sale in the historical center of Katlakalna, in the territory of private houses, in a quiet and peaceful place. Fully fenced plot with a total area of ​​1356 m², with an outdoor pool (4x10m) and two garages. A three-story residential building and an underground floor with a total area of ​​351 m²....
Mercury Group
Flat for 616 000 euro in Riga, Latvia
616 000 €
Flat in Riga, Latvia
162 sq.m 4
Residence
We offer for sale two-bedroom apartment in the most respectable and prestigious part of the city of Riga - the Quiet center, while at a small distance from the tourist place and the more calm and measured style of life. The apartment, with a total area of ​​162.5 m2, is located on the 7th floor of the building. Layout: Three bedrooms, two...
Mercury Group
Flat for 257 000 euro in Riga, Latvia
257 000 €
Flat in Riga, Latvia
71 sq.m 2
Residence
An apartment is offered for sale in the center of Riga, in the project "SKANSTES VIRSOTNES".The project is located in one of the most prestigious areas of Riga with developed infrastructure nearby.The apartment consists of a corridor, a living room combined with a kitchen, a separate bedroom, one bathroom and a large glazed terrace with a...
VIP Real

Forecasts and Expectations

In 2020, the Latvian real estate market has demonstrated its strength сontrary to the opinion that the coronavirus pandemic and the sharp decline in foreign demand will certainly affect its condition.

However, there is not much to be happy about yet. There is indeed a significant excess of supply over demand in the elite segment. It is hoped that with the start of mass vaccination and the expected removal of quarantine cordons at the borders in 2021, activity will increase in the market. The main thing is that the economy of Latvia as a whole would not fail.

Quoting conditions of Prian.info materials

Share the link:
Tags: Latvia, Market Analysis, Real Estate

Read also

The short-term rental sector in the EU has strengthened by 50% over the year
In 2022, the largest increase in the number of nights compared to 2019 was registered in Sweden...
Housing prices in the EU have increased by almost 50% in 12 years
Purchase prices are rising faster than rental rates.
European lawmakers have agreed on a draft regulation for data collection and sharing for short-term rental services
The landlords and online platforms will have to send monthly reports to the authorities.
The easiest сountries to get сitizenship in the EU have been revealed
The study was conducted by the Canadian immigration agency CanadaCIS.
The volume of investments in European hotels has declined. But the situation will get better
This data is provided in the report of the HVS consulting company.
Deloitte has presented the latest overview of European residential property markets
The experts have named the most expensive and the most affordable countries and locations.

Interesting to read

News and articles on the topic «Latvia»

EU tourism performance exceeds pre-pandemic levels

The number of nights spent in EU tourist accommodation reached 2.9 billion in 2023.

  • 12.03.2024
  • 24

The easiest сountries to get сitizenship in the EU have been revealed

The study was conducted by the Canadian immigration agency CanadaCIS.

  • 18.01.2024
  • 112