Covid-19, Latvia, Real Estate, Tourism

"The rental market has suffered quite significantly due to the considerable drop in tourist flows. I have heard that now in Old Riga exclusive apartments can be obtained at very cheap rental prices, but that owners are not prepared to conclude long-term rental agreements at these prices," said Smits.

He added that as soon as the flow of tourists resumes, such leases will be terminated.

"Could these apartments remain in the long-term market? I do not think so. This is currently a short-term solution for owners not to lose income at all - 400 euros is not 800 euros, but it is not zero. At least they can re-pay loans and utilities. I absolutely do not think this situation will continue in the long run, it is a short - term solution to the crisis,'' said Smits.

Asked by how much rental prices have fallen during this time, and whether prices will return to previous levels as the situation normalizes, Smits said that prices will definitely return to previous levels.

"I won't even mention price reductions because we don't really have a rent register. If one or another landlord lowers their price, that doesn't mean everyone does. It could already be said that they are 30 percent or even 40 percent lower for exclusive properties, but it just my gut feeling,'' added Smits.