Dubious revival in the land market in Latvia

30.08.2010 11:58
Real Estate Market Analysis | Dubious revival in the land market in Latvia According to the company Latio, the number of land transactions in May rose by more than one third compared with the previous month. A stir in this area and other experts say.

Leading Riga region

"Interest in acquiring land for private development continues. Buyers of private homes are not ready to meet the low supply houses in the middle price category - said in an interview with Telegraph Diane Stahl, director of real estate appraisal company Latio. - In turn, sellers of homes limit loan commitments, and they can not reduce the price of real estate. And since land prices and construction costs have declined significantly, many of these potential buyers, finding a ready house, start to think about buying land and building houses. "

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According to Diana Stahl, an increase in interest to land is reflected in the increase of the volume of transactions - in May compared to April more than doubled their number in the Riga region, reaching nearly $ 200.

From five to one hundred and fifty

As for price range, then the cost of 1 square. m of land in riga region ranges from 5 to 25 euros. In turn, the square meters in the capital, estimated a higher price.

"In May, in Latvia (including the district of Riga) in total, committed just over 300 transactions with land plots for construction ranging from 300 to 3000 square meters. m - calculated Diane Stahl. - Compared with April, the number of transactions increased by roughly one-third. In the capital, prices of building plots ranging from 40 euros per square meter. m in the districts of up to 150 euros Kipsala and Teika. Even higher prices in Mezaparks.

Doubtful recovery
"The interest in buying land actually increased - people call, interested, watching, but the real deal, we still observe very little - said Aigars Zarins, CEO Balsts agenti. - Despite the fact that the construction of affordable, accessible and money today is very low. Maybe someone has the money to buy the land but no money to it to build something. In the current situation, people, in my opinion, still more focused on the finished products, in particular at the apartment. With regard to the dynamics of land prices, I think in the coming year price growth in this sector is not expected. "

"Maybe, market activity rose slightly, but I do connect only to the fact that winter is over and people in the spring and summer are always active - says the director of the company Averts. - Something cheap, maybe buy, but, in my opinion, the reasons for the increased activity of this segment of the real estate market today, no. Conversely proposed by a tax increase on real estate, this process would slow even more. If we compare with a peak growth of the market, prices for construction now, of course, below, but if people today buy land, then until he reaches the construction phase, will be held at least a year. And by that time will be the price - is unknown. "
Content tags: Overseas property land
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