Агентство недвижимости RD Global

Real estate prices in Latvia show a rise, the market continues to stabilize.

Experts NIRA Fonds in his review of the real estate market in Latvia are seeing an increase in prices in October at an apartment in a production house in Riga: a good typical apartment has rarely offer cheaper 520-550 euros per square meter. m. The number of transactions in which both appear on two or three apartments. Bad apartments are sold, weighed down by a bank loan. Owners of commercial premises in the city center do not want to make deals with low interest rates for a period longer than a year. Prices for rental of residential property in Jurmala fell 2-3. Rates for rental of commercial properties in Riga low as ever.

Average prices of offers in the market of apartments in Riga serial houses grew in October. If they were in September at 480 euros per square meter. m, now a rare good offer is cheaper than 520-550 euros per square meter. m. While the range of buyers are still reluctant to buy an apartment, if the cost per unit area in these lower-level title. In the bidding process, they invariably try to get at least a 10% discount. The higher price is possible only for an object with certain competitive advantages - the presence of really good European-quality repair, kitchen and home appliances, which consumers are ready to leave the former owners, the prestige of the house and a good choice of location.

More than other buyers interested in the sleeping districts of Riga - Purvciems, Teika, and Plavnieki Zolitude. Top most popular city model apartment projects led by the 119-home series. Further, with decreasing popularity, followed by a series of 104-I, 103rd and brick "brezhnevki", 467 th, 602 th, "Khrushchev", "Lithuania" project. Completing this roster and the so-called Malosemeika malogabaritki. Latest - apartments of about 18 square meters. m, shower and kitchen shared. These options are offered 350 euros cheaper per square meter. m

Buyers respond well to the "hot" deals - that is, at below market prices. However, despite the start of price stability, activation of specific market purchases and sales of standard apartments has not yet shown. Statistics show that the number of deals with model homes in October, remained almost the same level as in July - September.

Carried out by the NIRA Fonds analysis of transactions showed that most are bought and sold type apartment without any encumbrances. But those who purchase in 2004-2007 was designed by a mortgage, charge less. This is because the amount of collateral is higher than the average market price for a similar apartment.

Potential buyers are starting to more strictly limit the parameters of interest of housing. Criteria: The location of the home, number of rooms in the apartment and the main - the maximum price they are willing to pay.

The new trend - an increase in the number of consecutive transactions with a large number of objects. The situation is somewhat reminiscent of early 90-ies of XX century, when the chain of exchanges may appear three to five apartments. "Now, however, not so much change, how much to buy - explains board member of the NIRA Fonds Eugenia Markova-Krumina. - People are willing to sell their property and move to a new one. The owner of that to which they are moving as well as looking for a new option for accommodation. In such a multi-way transaction without a qualified intermediary is not enough: it must take into account the interests of all parties to observe the talks. It is necessary to control every stage of this chain. " Due to the increasing number of complex chains, including two or three apartments, deals are becoming more persistent in the performance time. It should be noted that, as in the 1990s, most transactions are in no credit. Plus, people at the checkout trying to save money on absolutely everything: the notary, a lawyer, do not tear off the bank account transactions. Which is pretty risky.

Exclusive accommodation and Riga Center

The situation in these segments of the housing market capital has not changed. Requested for luxury apartments prices rarely exceed 5000 euros per square meter. m. However, the purchase are in the range of 2 000-2 500 euro per square meter. m

In the heart of the capital demand for apartments 800-1 000 euro per square meter. m. The rare offer of apartments in prewar buildings near the Center, which periodically appear with a price around 700-750 euros per square meter. m, find a new owner in just a day after sales began.

Buyers of apartments in the center (however, this also applies to those seeking housing in the neighborhoods) are increasingly asking the question: Who serves the vending them an apartment building? And they are not interested in municipal or private enterprise is, but only the extent to which it is strong in financial terms. People have heard about the growing number of debts to pay utility bills and the fact that many of the houses because of debts are not connected to the heating. Only a big company can refinance debt and provide warmth in winter residents.

New

The volume of supply and prices remain stable - 800-1 000 euro per square meter. m not being able to reduce prices further, the owners of some of the projects are increasingly promoting their existing rental apartments on the market. Or, offer accommodation for rent with the right to repurchase within 30-40 years.

Apartments for Rent

Hiring of the housing stock in Riga fell slightly - of 6.5-7.5 euros per square meter. m. There are suggestions, and at lower prices: the rate depends on how badly the owner must ensure that the turnover of funds.

In residential districts apartment for rent at 2.5-3.5 euros per square meter. m

Special mention deserves the market rent of Jurmala. Volume of supply in its various segments compared with the summer months decreased by 30-40%. And rents for apartments and houses have declined by about a factor of 2.5-3.

Commercial area

All market activity is concentrated in the center. Potential tenants are well aware: rates are low, as never before. For Class B office space - 4-6 euro per square meter. m for retail space in attractive locations the main shopping streets of Riga - 10-12 euro per square meter. m. "The offer price has not changed. At the same time, each contract is by mutual agreement and subject to certain conditions of entry to the premises. Discount on rents is given for a period as long as there is a repair and until a new point of sale does not unwind. Therefore, the average monthly rate for the first year is much less than what was specified in the ads, "- said vice-president of NIRA Fonds Edward Krumins.

In general, the situation is that owners of commercial buildings tend not to fix rates for the long term. Maximum for the year. Waiting for better times. Experts predict the NIRA Fonds also that the positive dynamics in trade show itself over the next six to twelve months. And if the owners of the premises will give them long term at the lowest price, they risk prolong a crisis. Therefore, given the short contracts, in the autumn of 2010 at the main shopping streets of Riga could ride a new wave of rotation of the tenants. Those who now occupies these places will have to either leave or agree to increase rates. But they agreed to stay only if the move would be economically justified. The problem is that due to current low lease payments over the last year appeared in the center of the outlets, the range does not allow them to rely on rapid growth in turnover. Usually, they offer low-cost consumer products for which demand remains relatively steady from year to year. Therefore, the growth rates for rental, if tenants wish to remain on the site occupied, they will be met from its own profits.

Prospective tenants NIRA Fonds recommends more careful in choosing the location of their point of sale is subject to possible prospects for the rental market for the next two to three years. Among the clients of NIRA Fonds many of those who first began to try myself in the trading business. Often they choose the lowest bid, not paying attention to the flow of people, which provides street. It is one thing - a place on the streets or Terbatas Brivibas and quite another - on the street Stabia, in the area between the same and Terbatas Brivibas. Rental rates vary little, while the flow of people and the chances of impulse buying - at times. Therefore, experts recommend that NIRA Fonds its customers to overpay for two to three euros per square meter. m, but choose a better and more profitable place for business. And fix a price level for the next three years. The owner of the premises, knowing that his rate is slightly higher than the neighbor, looking for such a contract is more favorable.

Tax Policy

One of the key factors that influence the real estate market in Latvia, it has become volatile fiscal policy. From 1% to 1.5% increase from next year the land tax. Coalition parties seem to agree on the tax on housing - 0.1% of cadastral value of the object.
This is certainly the most painless option for people in our country. Here are just a question of the amount bid still requires careful study of the state's point of view: how costly new tax administration and the State will be in positive territory after the introduction of a new collection? "Over the past few months we have received information about at least a dozen different betting options and ways of levying taxes on housing. Some of them turned to regulators, while others were unacceptable to foreign creditors of our country, against the third strongly advocated the public.
Unfortunately, all this confusion and uncertainty adversely affecting investment attractiveness of our country and scare away foreign investors from the real estate market. While taking into account the low price it, on the contrary, should be interesting - says Evgeny Markov-Krumina. And he continues: - To those negative aspects affecting the development of the economy and housing market, and is the government's intention to January 1, 2010 to introduce 10% tax on capital gains. This is a bold minus the image of the investment attractiveness of Latvia. For entrepreneurs unacceptable that he actually has the opposite effect. That is, if after 1 January 2010, the management of any company will consider paying dividends for 2009, 2008 th or any other previous year will still have to pay nalog{linkr: bookmarks; size: small; text: nn; separator: +; badges: * }