Economics, Latvia, Real Estate
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Saturday, 17.05.2025, 06:10
Low point for housing market is over in Latvia
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Latio market analyst Maris Grinbergs believes that the low point for residential housing prices was last year, writes LETA.
"Compared with the commercial sector, the residential sector 'collapsed' first. Developments in the commercial sector are more closely related to economic changes, but the residential sector lives its own life somewhat. In the long term, of course, everything is connected. At the moment we are seeing the first signs that the residential sector is coming back to life."
"If we believe the forecasts that the low point for the economy will be this year, then it will be the same for the commercial property sector," added Grinbergs.
"If we accept that the country's economic situation is not going to worsen, then the low point has passed," said Maris Laukalejs, board member and valuation section director for Arco Real Estate.
Speaking of new project apartments, he indicated that similar tendencies had been observed in this segment as in the market for Soviet-built cinder block apartments. "There was great activity at the end of last year. Prices in share form were lowered, and owners were even being found for apartments located on the first or top floors, or which were very large. Various developers have carried out projects where apartment sales were fairly successful. Activity in this segment is greater when prices are reduced," explained Laukalejs.
SEB banka socio-economic expert Edmunds Rudzitis indicated that two negative factors will influence housing market demand in the coming years. "First of all, emigration is going to continue, which reduces both population numbers and the desire to obtain real estate in Latvia. Secondly, the low birth rate of the early 1990s will have an effect on the housing market over the next few years. There will be fewer young families who would need new or larger apartments. This could also mean that there will be sustained demand for one-room apartments," said the bank's representative.
Those with knowledge of Latvian can find the full text in the "Viedokli, intervijas" section at "Nozare.lv".
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