In the beginning of year 2009 still a lot of agriculture land and forest land are for sale or on auction. The prices have fallen the last few months of 2008 and 2009 also for land plots suitable for summer houses.
In view of the latest development in Latvia and acts of a number of foreign investors, it is advisable to look for opportunities here. The EU policy in agriculture seems to favour economy of scale and it is difficult to apply in the newly privatised or denationalised farms in the Baltic countries.
The inland of Latvia contains many small farms, forest properties, private houses, and building grounds, close to or bordering, lakes, rivers or artificially made big ponds. The present economic situation with payment difficulties for bank loans makes the prices drop drastically. In combination with the small scale and financial problems it is possible to find good long term investments in land properties.
The travel communications with Riga and Baltic countries have vastly improved the last years and the distance is only a night by ferry from StockholmSweden. The airport of Riga has grown to a dominating position in Northern Europe.
We manage a few properties in Latvia for nonresident investors and we can find horse farms or holiday homes for interested buyers.
Recreation
Latvia borders the Baltic Sea with about 1000 km of coast land, mostly sand dunes. The coast was very popular for Swedes as recreation area before World War two. It is now increasingly getting more popular.
The prices for houses vary with the distance from Riga and popular coast towns. We see good opportunities for private and corporate investments in this area. We can help you find, buy, build, and manage such investments.
There will be very good opportunities during year 2009 to acquire houses at reasonable prices due to market saturation and economic stagnation.
Buildings and Appartments
The real estate market is been growing too fast and the supply of new or renovated apartments is too big in the start of 2009. At the moment there are many properties in central parts of Riga, which are for sale and due to lack of financing prices are going down. Prices are officially reduced with between 20 and 60 % in comparison with the peak level 2008.
The prices have started to fall and will fall to a level where supply and demand balance. The shorter term price level is impossible to predict as such a severe economical situation has never been experienced before.
However in a long term perspective, the CapitalCity of Latvia and EU State, there is high probability for substantial increase of flat and house values in Riga.
Commercial premises are at the moment in redundancy in Riga and prices are going down for sale and rent of such.
