2008
This increase in number of rent transaction is to be explained by the market situation. In market recession conditions people choose cheaper goods and services, i. e. they choose between buying an apartment in a standard design house or renting and waiting until the situation will improve. Also those who have managed to sell their property successfully choose at present to rent an apartment to see what happens next.
When buying housing, people are more aware and more carefully evaluate both the price of the property and the amount of the credit payment. More often housing is bought when the rental payment equals the potential credit costs. At present, the most popular are apartments in the secondary market, especially apartments with two isolated rooms and apartments of small areas. Currently buyers are interested in price: the lower the price, the more interesting the offer.
The issue of what will happen in the real estate market in the future is a matter for many. Aigars Zariņš explains the prospects of the company “Balsts” in the following way: “This year, the prices of standard design apartments will continue to decrease, and this market will continue to be the most attractive to those wishing to acquire something for themselves also in the future. We are concerned about the “heavy landing” which would cause increase of the amount of credit payments not repaid and herewith the placing of the respective apartments in the market for a price which could reach even EUR 800/m2. This would bring us back to the end of the 1990s and the beginning of 2000 when the growth of the real estate market started first with the increase of the low prices in the secondary market. Whether this scenario comes into effect, it will be possible to see at the end of this year”, says the President of “Balsts” Executive Board.
