Investments, Latvia, Real Estate

International Internet Magazine. Baltic States news & analytics Monday, 21.05.2018, 23:36

Rent in Riga center has dropped 15-20% this year

BC, Riga, 15.12.2016.Print version
Being unable to sell upper-class apartments in downtown Riga, their owners have started to offer the apartments for rent, therefore rent in downtown Riga has declined 15-20% this year, LETA said Latio real estate company’s board chairman Edgars Sins.

A large part of these properties had been prepared to be sold to non-residents, but, as the number of such buyers has considerably dropped in the past two years, the owners want to return the invested money and offer the apartments for rent.

According to Latvia, rent in the new project apartments and renovated buildings in the center of Riga have dropped from EUR 11 per square meter to EUR 8.5, while tent in partly renovated pre-war buildings have dropped from EUR 7.5 to EUR 6 per square meter a month.

As the bank interest rates remain low, more people are investing in real estate that can be rented later. Sins said that this is quite a new trend that whole buildings are purchased, renovated and turned into rental apartments.

Sins also said that for the first year local buyers have bought more properties for rent that foreigners.

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