The study of Balsts company has shown that although during the crisis the prices have fallen in all three Baltic capitals, Riga is now far behind Tallinn and Vilnius.
The most stable position has Tallinn. If we compare the current value of the property with the pre-crisis peak point, the difference is only 9%. On second place by a wide margin is Vilnius (32,5%). But in the Latvian capital prices fell by 58% compared to the highest pre-crisis level.
Thus, from the beginning of 2016 the number of real estate transactions in Riga increased by 26%. However, according to Aigars Zarins of Balsts company, Riga market shows signs of minimal development.
Among the factors that, according to Sarinya, impede the process of recovery of the markets — lack of support for entrepreneurs, ineffective population policies and, of course, uncomfortable conditions for foreign investors.
For example, not long ago, the Latvian Saeima approved the introduction of fees for extension of residence permit. From 1 July of this year, foreign owners of the Latvian real estate will have to pay €5000 for the possibility to stay in the country.
This innovation has recently been condemned by the mayor of Jurmala Gatis Truxinic. According to him, real estate sales fell in 8 times in comparison with last year, the Latvian market could not afford this.
According to the materials of baltnews.lv and utro.ru
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