Latvian real estate market review
According to the annual review, provided by the Latvian State Land Service (hereafter the SLS), during the period from the second half of 2011 to the second half of 2012, 49% of the total transaction turnover in real estate originated from deals on flats and commercial buildings, leaving more than half (51%) of all turnover being related to plots of land.
As the SLS mentioned in it’s review, the biggest players in the real estate market in Latvia today are commercial banks and their subsidiaries. The second position (by volume of financial turnover in real estate) is held by the foreign investors, many of whom pursue the goal of receiving a residence permit in Latvia based on the purchase of real estate. The fact that Latvia’s credit rating and GDP have increased significantly in recent years, while the rating of other European countries has declined, has played a crucial role in drawing the interest and confidence of foreign investors – especially in the Latvian real estate market. Many studies along with visible trends prove that the amount of money spent on real estate in Latvia will continue to increase for the forseeable future.
