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Real estate in Latvia Real estate in Latvia is immovable property that usually consists of a land plot (possibly including all natural resources, depending on the agreement) and any buildings connected with it. In the case of an appartment it can also refer to a specific part of a building, along with a defined shared interest in the underlying land. In Latvia, if a foreigner purchases real estate and if the deal meets with specific requirements then this kind of investment can entitle the purchaser to apply for a residence permit. (read more) Latvian real estate market review According to the annual review, provided by the Latvian State Land Service (hereafter the SLS), during the period from the second half of 2011 to the second half of 2012, 49% of the total transaction turnover in real estate originated from deals on flats and commercial buildings, leaving more than half (51%) of all turnover being related to plots of land. As the SLS mentioned in it's review, the biggest players in the real estate market in Latvia today are commercial banks and their subsidiaries. The second position (by volume of financial turnover in real estate) is held by the foreign investors, many of whom pursue the goal of receiving a residence permit in Latvia based on the purchase of real estate. The fact that Latvia's credit rating and GDP have increased significantly in recent years, while the rating of other European countries has declined, has played a crucial role in drawing the interest and confidence of foreign investors - especially in the Latvian real estate market. Many studies along with visible trends prove that the amount of money spent on real estate in Latvia will continue to increase for the forseeable future. The speed of growth has been strong but steady, increasing confidence and reducing the risk of any kind of property bubble. According to statistics provided by the Office of Citizenship and Migration Affairs, during the last year alone, 2,435 foreigners requested a residence permit based on the purchase of real estate. The SLS data shows that the role of the Riga real estate market has always been bigger than the rest of the Latvian market. This trend has increased during the last few years. The amount of real estate deals in Riga is two times higher than in the rest of Latvia, which makes real estate in Riga in pretty high demand. You can see more data about the Latvian property market in our section on real estate statistics. Real estate in Riga As noted above, real estate in Riga is in much higher demand, and of a much higher value than in the rest of Latvia. Please see the map, below, of areas of Riga, which can help you understand in which areas real estate is most valuable and most in demand. The most popular districts of Riga are the old city and the so-called quiet centre. NB The location of real estate is one of the most important factors determining it's price. However, depending on condition, status and other factors the price of real estate in those areas may vary. |
