Are you thinking of buying a real estate in Latvia? We have prepared a small guide or facts that you ought to be aware of on real estate in Latvia.
In Latvia, the number of rooms is not counted as in the Western Europe or USA, where a room means a bedroom. In Latvia, all the spaces appropriate for living are regarded as rooms.
One-room apartment may be a studio type apartment where the living room is combined with the kitchen as well as an apartment of one space – a living room that is also a bedroom.
Two-room apartment is an apartment where there is one living room which may be combined with a kitchen, and a bedroom.
In Latvia, the most popular are single room or studio-type apartments, two-room apartments – so apartments with one bedroom, and three-room apartments or apartments with two bedrooms.
Also floors are numbered differently from the Western Europe. In Latvia, there is no such a thing as a zero floor or ground floor or rez-de-chaussée. Therefore, if you wish to buy an apartment on the 1st floor (according to the European principle of numbering floors), that will be a 2nd floor apartment in Latvia. Remember that the first and the top floor apartments are less marketable in Latvia – the prices of such are lower but they are also more difficult to sell.
Our company suggests that the investors purchase property in the centre of Riga, the Quiet Centre and the Old City of Riga. Property in the said areas will always be in demand both among the buyers and the tenants owing to the places of entertainment and recreation, schools, parks, the public transport and comfortable infrastructure.
Such an investment will never depreciate just like it is in all the European capitals and it will be easy to rent and sell with at least 7-8% of profit.
The average rent of a 55 m2 apartment in the Riga centre that has been bought for 1 700 EUR/m2 (for the total amount of 93 500 EUR) will be 450 EUR. After 17 years you will have fully recovered your investments in this apartment.
Good investments are possible also in the most marketable districts of Riga – within 10-15 minutes car ride from the city centre. They are green areas with schools, pre-schools, parks, sporting facilities and much lesser traffic; they are safe but at the same time within easy reach of the city centre. Popular districts are Āgenskalns, Torņakalns, Iļģuciems, Teika and Mežaparks. This kind of investment will pay off sooner owing to lower purchase price of the property.
Profitable investments are possible also in the centres of other bigger cities of Latvia if buying an apartment or house ownership. It is also possible to purchase private houses in beautiful and picturesque cities of Latvia and in outskirts that are situated close to woods, lakes and rivers so to enjoy the attractive landscapes of the Latvia nature.
In Latvia, there are many different types of buildings, which is the main condition for the value and the price of the property, for instance the prices of comparable apartments in neighbouring building may considerably differ only because of the type of those buildings. The most popular, marketable and prestige are masonry building of the pre-war period; most of them are the cultural heritage – so gems of architecture. The buildings of the Stalin era are also in demand. In these buildings apartments have tall ceilings, thick brick walls, the facades are decorated and there are balconies. The value of the property increases even more if the building has been renovated.
Also the new projects are a good investment as these apartment buildings are modern and recently built. Both buyers and tenants are interested in those. Their main advantage is a comfortable layout, new communications, underground parking lots, terraces etc.
Investments in house ownership in the Riga centre, the Old City, Teika, Āgenskalns, Mežaparks or Čiekurkalns are also possible. In such an event it is possible to purchase a private house or an entire apartment building where by investing 200 to 500 thousand euros and then splitting and selling or renting the apartments a great profit is to be expected.
It is also possible to buy land parcels in the Riga outskirts in order to design and build a new apartment building or even a small private-house neighbourhood.
Surely, the most popular are the properties in the Riga centre, where the rent of an apartment depends on the number of rooms, the condition of the apartment and other factors.
Average apartment prices in the Riga centre
Currently the average apartment prices in the Riga centre are rather stable with a slight, healthy trend of increase. Let’s compare the average prices for a square metre for two-room apartments (a bedroom and a living room) in the Riga centre.