Analytics, Baltic States – CIS, EU – Baltic States, Investments, Latvia, Legislation, Real Estate

According to the recent figures of the Office of Citizenship and Migration of the Republic of Latvia, total amount of foreign investments into the Latvian economy comprises 347 million lats. Total amount of investors – around 1700, not including their family members, informs BC PR and marketing manager of Baltic Sotheby’s International Realty Jana Cirule.

“Total amount of foreign investments into Latvian real estate comprises 38 million euros. According to our figures, around 1.5 million euros has been additionally invested into the sector of real estate by this day. Many investment projects are at the stage of consideration or analysis, and their sum might comprise up to 10 million euros this year only. The biggest interest is triggered by the objects of 143-200 thousand euros. 68% of deals have been made in this segment. In the range of 200-350 thousand euros – 20% of deals, higher than 350 thousand euros – around 12% of deals”, – says Vestards Rozenbergs.  

Mikhail Parinov, Chairman of the Board of JSC Padva un Partneri Baltija: “Our data is confirmed by the figures of the government institutions: the biggest part of investors – citizens of Russia – approximately 75%. They are followed by the citizens of Ukraine and Kazakhstan. Other world powers, on the other hand, are not actively presented. This can be explained by the fact of wide distribution of the Russian language in the territory of Latvia. Major part of Russians, in turn, is represented by the residents of Moscow and Saint-Petersburg. The “furthest” Eastern investor lives in Southern Ural region. Apparently, the residents of the other part of Siberia and Far East plan their lives orienting towards China and countries of South-eastern Asia”.

According to him, 15 % of investors are in the age of up to 30. Comparatively large specific weight of this group can be explained by the factor of “grown-up kids”, namely the biggest part (3/4) is constituted by the children of legal age, who have invested together with their parents or at their expense; age group from 30 to 45 years comprises 52% of the total number of investors; from 45 to 60 years – 27%; older than 60 years – approximately 6%.

Average family of an investor consists of a married couple with two children. Each investor has at least one higher education. It is an interesting fact, that 60% have an education in humanities and only 40% – technical education. Approximately 60% of investors are salaried employees, while 40% are entrepreneurs, who run their own business.

Area of activity of the investors, who have acquired the residence permit in return for investments:

23% – service sector (transport, education, health protection, creative professions, etc.)

18% – financial sector (banks, investment and insurance enterprises)

18% – trade (wholesale and retail)

14% – civil engineering of real estate

10% – production

10% – housewives

7% – lawyers and consultants.

* Information was provided by the company, working with the real estate of premium class, Baltic Sotheby`s International Realty, as well as by the law office Padva un Partneri Baltija and the developer LLC „Saliena”. Altogether, the information on 165 investors and 218 members of their families has been summarized. The biggest part (95%) has invested into the real estate sector.