2008
In May the prices for
apartments in the secondary market continued to decrease. The average price for
apartments in block buildings is now by another 1.5% lower and has now reached
an average of EUR 1332 per square metre. The secondary market becomes more and
more active, since at the current economic situation in
“The decrease in prices
for apartments in block buildings over the year has now amounted to more than
20%, which is a rather impressive drop. The trend will continue this year;
therefore it might not be wise to consider purchase of real estate as an
investment opportunity.
Now real estate is to be purchased for one’s own needs, there the opportunities
are extensive and the prices are attractive”, suggests Aigars Zariņš, Chairman
of the Board of SIA Balsts.
“The main focus of the crisis and what the current crisis is about is the issue of real estate purchases for speculative purposes that are mainly commercial properties, residential buildings and apartments. These “investors” that have purchased more than one property during the times of rapidly-growing market, now are trying to sell them off one by one at a maximum price possible in order to cover the loan payments for the remaining properties at least for some time, but are failing at that as well. Actually, all of these properties should be on the market for appropriate price (residual value), so that the real end-users, funds or investors with experience could acquire them and the speculative traders could at least repay the debts they have to banks. It is insane to try hold on to it against any logic, since no one is able to tell how far the prices for real estate will continue to fall”, explains Aigars Zariņš.
In the lease market, the surplus in supply and the fact that many companies try to optimise their costs move to smaller premises or abandon them, force the lessors to pay more attention to the wishes of the clients. There are better opportunities to lease out premises where the circumstances are favourable for business activities (modern premises, good technical condition). It becomes more and more difficult to find lessees for premises requiring renovation. The price corrections in the lease segment might reach even up to 10-20%. However, the corrections do not affect the top lease areas that are always in demand.
In the rent segment the apartment owners are increasingly often ready to negotiate a reduction in rent of 10 – 15%. The highest demand exists for 1-room and 2-room apartments for rent both downtown and in residential areas.
The number of new clients of the company Balsts in April increased by 30%. The company continues to hire additional staff and its financial indicators continue to improve. “There have always been market fluctuations and there always has been an end to that, this happens all over the world. There will always be people who are looking to purchase something and to sell something. This is why we are here and continue to provide high quality realtor services”, emphasises Aigars Zariņš, Chairman of the Board of company Balsts.
For more information contact:
Evita Strazdiņa
Marketing Manager
____________________
SIA Balsts
57 Dzirnavu Street, Riga
LV-1010, Latvia
Phone: +371 67212276
Mob.: +371 29488824
Fax: +371 67214164
E-mail: evita.strazdina@balsts.lv
www.balsts.lv
“The main focus of the crisis and what the current crisis is about is the issue of real estate purchases for speculative purposes that are mainly commercial properties, residential buildings and apartments. These “investors” that have purchased more than one property during the times of rapidly-growing market, now are trying to sell them off one by one at a maximum price possible in order to cover the loan payments for the remaining properties at least for some time, but are failing at that as well. Actually, all of these properties should be on the market for appropriate price (residual value), so that the real end-users, funds or investors with experience could acquire them and the speculative traders could at least repay the debts they have to banks. It is insane to try hold on to it against any logic, since no one is able to tell how far the prices for real estate will continue to fall”, explains Aigars Zariņš.
In the lease market, the surplus in supply and the fact that many companies try to optimise their costs move to smaller premises or abandon them, force the lessors to pay more attention to the wishes of the clients. There are better opportunities to lease out premises where the circumstances are favourable for business activities (modern premises, good technical condition). It becomes more and more difficult to find lessees for premises requiring renovation. The price corrections in the lease segment might reach even up to 10-20%. However, the corrections do not affect the top lease areas that are always in demand.
In the rent segment the apartment owners are increasingly often ready to negotiate a reduction in rent of 10 – 15%. The highest demand exists for 1-room and 2-room apartments for rent both downtown and in residential areas.
The number of new clients of the company Balsts in April increased by 30%. The company continues to hire additional staff and its financial indicators continue to improve. “There have always been market fluctuations and there always has been an end to that, this happens all over the world. There will always be people who are looking to purchase something and to sell something. This is why we are here and continue to provide high quality realtor services”, emphasises Aigars Zariņš, Chairman of the Board of company Balsts.
For more information contact:
Evita Strazdiņa
Marketing Manager
____________________
SIA Balsts
57 Dzirnavu Street, Riga
LV-1010, Latvia
Phone: +371 67212276
Mob.: +371 29488824
Fax: +371 67214164
E-mail: evita.strazdina@balsts.lv
www.balsts.lv
