Foreign citizens are still having active interest in buying real estate in Latvia and one of the contributing factors is the possibility to obtain temporary residence permit (TRP). According to projections by Latvian experts, by the end of the year the number of deals for the purpose of obtaining TRP in Latvia will exceed 3000, for the amount of about 600 million euro. Russian real estate professionals assume that the said investments made by their fellow citizens have already peaked and now have levelled out. At the same time foreign buyers still believe that Latvia is the most suitable place for living between the three Baltic States. The aforesaid was discussed by Latvian and foreign participants at a seminar organized by Baltic Sotheby’s International Realty, company marking this year its 3rd year of economic activity in the Baltic Region.
Baltic Sotheby’s International Realty has been organizing the seminar for the 2nd consecutive year now. It is aimed at establishing foreign buyers’ preferences when it comes to buying real estate in Latvia. “At the moment premium real estate market is active. Therefore, it is very important for us to establish the needs of consumers”, points out Vestards Rozenbergs, Chairman of Board of Baltic Sotheby’s International Realty.
“The number of deals in Real Estate for obtaining TRP is constantly growing: from 79 deals in 2010 to 1012 last year. According to our rough estimates, the total number of deals closed in 2013 will reach 1300 – for more than 252 million euro. Whereas during the period between July 2010 when amendments to Immigration Law came into force and by the end of 2013 – 3060 and 613 million euro accordingly”, says Liene Klementjeva, Lawyer and Board Member at the law company АО Padva un Partneri Baltija (Riga, Latvia). According to her, by May 2013 the number of deals closed in Latvia reached 2115, including 1178 with real estate in Riga, 671 – in Jurmala and 266 – in other regions.
Up to May 2013 the number of applications for residence permits was 6249. Division by citizenship of the residence permit applicants is the following: Russia – 4573, Ukraine – 489, Kazakhstan – 331, Belarus – 158, China – 206, other CIS countries – 358, other countries – 134.
According to V. Rozenbergs, foreign partners once again pointed out the advantages of Latvian immigration programme as opposed to, for instance, the programme in Spain. They also mentioned the unique climate of the Baltic pearl – Jurmala. “One third or 32% of applicants were clients who wanted to buy real estate worth over 200-350 thousand euro mostly located in Riga and Jurmala”, comments Vestards Rozenbergs, Chairman of Board of Baltic Sotheby’s International Realty.
“What is interesting is the experience of our Lithuanian and Estonian partners working with buyers from CIS. For instance, premium real estate located in resort towns Druskininkai and Palanga is very popular among Russian, Ukrainian and Belarussian citizens. In the first case they are attracted by the developed infrastructure with various leisure opportunities and the old sanatorium traditions, as well as extremely convenient air connection between Moscow and the Lithuanian resort town”, says Ilze Mazurenko, co-owner of Baltic Sotheby’s International Realty. “Whereas Estonia is seen by foreigners as a country more suitable for business. Our colleagues claimed that Estonian ministries have less bureaucracy, the tax service website is available in Russian, the bank accepts documents for revision in Russian. Besides, there are only a few investment projects, such as hotels in Tallinn worth up to 10 million euro left, therefore, foreigners can now look at similar objects in Riga.”
Within the framework of the seminar participants were also given the opportunity to get acquainted with the real estate objects in Riga and Jurmala. All guests agreed that projects seen were characterized by variety, quality, and exclusivity which lets the buyers from Russia and other countries choose an object suitable for their own lifestyle.
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Resource: INTEREST OF RUSSIAN CITIZENS IN BUYING REAL ESTATE IN LATVIA BECOMES STABLE