Investments, Latvia, Legislation, Real Estate

August 2014 has been an active month in the Riga City centre apartment segment both as to the number of transactions, and to the price growth. The real estate market activity can be explained by the fact that August was the last month when non-residents could purchase real properties in Latvia and receive a temporary residence permit before the date of effect of the Immigration Act amendments where it is stated that from September 1 the minimum purchase amount was increased to EUR 250,000 EUR.

The market activity where transactions with properties for EUR 150,000 were dominating demonstrated also the fact that the largest price increase, compared with July, was observed in respect of apartments which, in the view of technical condition of the property, were in a very good condition – an increase of 2.65%.

"Just these residential spaces were most demanded in the non-resident sector, taking into account that foreign citizens mostly wish to purchase a property with a good interior decoration, ready for immediate living, without additional investment of time and finances," Laukalejs indicates.

According to Arco Real Estate, in August 2014 apartment prices increased by 1.6% in the city center, reaching an average price of EUR 2,113 per square meter.