Housing sector shows improvement

RIGA - If Latvia’s economic situation does not worsen, the low point for the housing market can be said to already have passed, claimed real estate companies and bank representatives in a discussion organized by the business portal Nozare.lv. Real estate brokerage Latio’s market analyst Maris Grinbergs believes that the low point for residential housing prices was last year.

“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.”
He added that “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.”

Board member and valuation section director for Arco Real Estate Maris Laukalejs said that “If we accept that the country’s economic situation is not going to worsen, then the low point has passed.” Speaking of new apartment projects, he indicated that similar tendencies have been observed in this segment as have been seen in the market for Soviet-era block apartments.
“There was great activity at the end of last year. Prices dropped, and owners were even found for apartments located on the first, and top, floors, or [flats] which were very large. Various developers have carried out projects where apartment sales were fairly successful.