After the real estate company’s BALSTS observations in 2011 there was a significant drop in prices - 7.3% - in a segment of standard-type apartments. The opposite situation is observed in the center of Riga and in new projects where the price increased by 7.69%. Assessing the market as a whole it cannot be said that it would be revived. A similar situation is also foreseen in 2012. We forecast an increase of prices and increase of activity in the center of Riga.
Crisis of “Latvijas Krājbanka” has not affected BALSTS index, in December it is 125. In the next few months we expect a positive index change, which could be contributed by the Chinese people interest of Latvian real estate, as well as the expected growth of Finnish investors' interest.
On November 2011 real estate company BALSTS has come up with a new real estate market situation indicator - BALSTS index. This index was introduced in order to make the real estate market assessing quick and easy to both - industry experts and other stakeholders.
LATVIANS PREFER STANDARD TYPE APARTMENTS, FOREIGNERS – APARTMENTS IN NEW PROJECTS
After the company’s BALSTS observations during recent months in the real estate market more and more visible is following trend - local people are interested in standard type apartments, foreigners – in new projects. Rental market continues to evolve, more and more people choose to rent rather than buy a property.
In
the end of the year we expect the price increase
After
the real estate company’s BALSTS observations, we conclude that
in the summer not only reduced customer activity, but also have
fallen the prices of the real estate in Riga. The opposite situation
is observed in Jurmala - there real estate prices have
risen. In the last quarter of 2011 we expect a
major increase in prices over the past 12 months.
In August 31 BALSTS together with business partner - Nordea Bank organized an event called "Silk Road", whose main idea was to collect as much money as possible to charity,using your sales skills. We had a good time by selling pedestrians variety of handmade and packaged things.
In the end of the action we visited a new yogurt cafe "Yo Yo Frozen Yoghurt", where eating the tasty ice cream, announced the results - how much money has earned each team! Once again congratulate the team "007", you were great!
Everything we earned in the event was given to charity organisation "Gaišie Spārni"!
Standard-type apartment mid-price after 7 months in 2011 is 601 EUR/m2. Every month there were minor fluctuations in the price. The opposite situation is characterized in the rental segment – in the last 3 months rent prices have increased by 6%, what is a result of insufficient supply. The situation in the real estate market has become unstable, soon will survive only the "strongest" and most innovative companies.
In order to introducethe real estateagentswith the real estate that is offered for
sale now and to promote a cooperation between real estate companies, BALSTS in
28th July from 4 pm to 6 pm in Brīvības bulvāris 30 - 8 for the fourth time
held a Brokers’ Open or „Open Doors event for real estate agents”.
Not onlyprofessionals werewarmly welcomed to fhe event but also the media. In the informalatmosphere witha glass of wineandlight snacks people were able toobtain information about current
apartment,
as well as discuss the situation in the real estate market.
In July
22 was a real estate company’sBALSTSsemi-annualmeeting.As usual this meetingwas heldoutside the city, we all discussed the past
half-year, all events and achievments in a pleasantandrelaxed atmosphere. After that we all
together set the
targetsfor the nextsemester, we carried outa variety ofinventive group exercises,as well as relaxed,dancingBALSTStraditionaldance-HAKA.After theofficial part of the meeting, alltogether ina funcompanyalsocelebrated the endof the first halfand thebeginning ofthe nexthalf of the year, which comeswith newopportunities and challenges!
FIABCI Scholarship Foundation
is a non-profit organization that issues grants for individuals and
institutions interested in researching a real estate business all
over the world. Since the Fund's establishment, it has granted scholarships
to 75 different individuals and academic institutions for more
than 10 different countries. Aigars Zarins in March 2011 was
elected as the International Real Estate Federation FIABCI Baltic Chapter president,
and now, in July, him offered the opportunity to become a member
of FIABCI Scholarship Foundation, one of the 11 persons
responsible for scholarships and grants, which he gladly accepted.
In
1st half of 2011 both – prices and customer activity - remained stable and
homogeneous. Greater interest was only from Russia and inhabitants of former CIS
countries. However, in the middle of summer - in July – we expect a sharp
increase in rental prices, which will be linked to the increased interest of
inhabitants of Russia and
other East countries in the rental items in the center of Riga,
in Old Riga and
in Jurmala.
For
a long period in the Real estate market is
observed stability. Is there a possibility that changes
in legislation will change the current situation?
After the
real estate company BALSTS observations in April, it shows that- towards the
summer, increases the real estate sales transactions in the center of Riga. Russian citizens
interest in the residence also has grown.
Implementation
of the euro in Estonia
has a negative impact on the real estate market. In 2014 is planned to implement
the euro in Latvia.
Do we face the same issues as our neighbor?
In Riga, March 4, 2011 in Radisson Blu Ridzene Hotel met real estate property association directors from Latvia, Lithuania and Estonia to establish the Baltic Department – FIABCI Baltics in the International Real Estate Federation (FIABCI). It was a long conversation and information exchange with greet outcome between the Baltic States and the various administrative levels of the International Federation. Aigars Zarins – Latvia’s real estate company's Balsts Expert president was elected as the FIABCI Baltic Department president.
Real estate company’s BALSTS observations made in the February shows that such factors as rising prices, increased investor interest in the Latvian real estate, young people's interest in the real estate agent profession contributes to the real estate market in post-crisis development.
Real estate
company BALSTS has observed that, the new year 2011 has started with increase
ofclients activity in rental and
commercial segment. According to company’s research, activity from clients has
increased for 15%, comparing with the end of the year 2010, while property
pricesstay at the same level.
Real estate company’s BALSTS observations in December shows that, this is the first time when after a year price growth, at the end of
the year prices are dropped. In the segment of Series-type apartments prices has dropped average about 1,5%,
but in the rental segment up to 10%.
This year the Nordea bank organized the seminar course for real estate companies representatives with economist Andris Strazds. The main objective was to show bank as friendly and profesional, and also as a stable and reliable for it’s partners. During the seminar Nordea bank announced the contest „Seeking the Best Real estate agent”. The winner in this contest are our real estate agent Judite Alpa. She are real estate agent who has attracted more costumers to Nordea bank. Judite receivs a prize – Tom Tom navigator.
Real estate company’s BALSTS observations in October shows that in some segments customer activity has clearly increased. Basically, prices have remained at the same level, but there are areas where is a sharp price decline.
Real estate company’s BALSTS observations made in September, shows that
the situation in the real estate market has stabilized. In most of Riga
property prices have remained at the same.
In September 8, 2010 we organised measure together with Nordea Bank. Our agents and bank employees during fun and attractive tasks was able to get to know each other's professional lives. During the Business Games we not only had really good time, but also strengthen the bonds of friendship with the bank employees!
Real estate company’s BALSTS observations in August showed that customer activity increased, particularly in a commercial segment. Real estate prices remained at the same level.
Festive mood of the 1st September was in the BALSTS too, we organised a campaign, during which informated pedestrians about the situation in real estate market, gave advices and delighted everyone with colorful balloons and sweets. The smallest ones, who had their first school day, were really glad about small gifts too!
Company’s BALSTS observations in july showed that the real estate market has picked up – people are looking for properties for their own use and investment purposes. Basically, customers are locals.
In July 9, 2010 BALSTS staff went away to nature, to discuss the half-year progress, to evaluate their work and set targets for the next semester. When each event participant had been at his word, and all work-related issues were discussed and resolved, everyone was ready to celebrate their work!
Company’s BALSTS observationts in June showed that there are not very significant changes in the real estate market compared with the previous month. Prices have stayed unchanged, slightly increased an activity of clients.
In July 1, 2010 BALSTS team met representatives of the leading Latvian Banks in a restaurant „KID”. After a greeting speech of a manager of Appraisal Department Ingars Karklins all together discussed the current situation in the real estate market and the role of banks in it. To develop closer cooperation, we are planning to repeat such activities regularly.
Therefore – we are looking forward to see you in the next BALSTS friends’ meeting!
2009 has been a year of price stabilization. This is the first time in 2,5 years there has been price growth. Since price decline in year 2007, real estate drop of prices has increased average to 75 %. That has ranked Latvia in first place in Europe.
