Ground rescues cheapness

24.01.2011 00:00
Articles about real estate | Ground rescues cheapness Location, location, and once again the place - so simplistic formula for success is as a worldwide marketing for real estate marketing. But it is in the classic sense. Formula for success trading land in Riga and its environs have recently been transformed into a place, plus a very low price. Effective it will be in 2011.

"The year may be lost to the market trade of land in Riga and its surroundings: in contrast to the apartment to wait for recovery in the segment it is not necessary. Transactions will occur only at very low prices and attractive at the location of areas "- this saw the development of the situation in 2010, the magazine and portal last winter. And the time has confirmed the validity of this assumption, especially its second part. That low price and became the defining factor that contributed to the success of trading land for private buildings in Riga and its surroundings.

Related article: KSCA auctioned 7 zemuchastkov

"Transactions with land for private construction was not so much. Another thing is that against the background of virtually "empty" 2009 last year, looked a little more attractive. Yes, and it was only possible due to significant price reductions by sellers. More precisely, those who had the opportunity to take this step. So, if in the past few years Marupe for sites asked for 100-150 euros per square meter. m, then in 2010 the best in the location of the objects if they were purchased, then a maximum of 20-30 euros per square meter. M. That is, the price is five times smaller than that! "- shares his observations, Officer Averts Guntars Kramens. And so, in his words, not the limit of concessions from sellers. Banks that are trying to sell entire township project (area of 10 hectares), take off and more. Real Estate, which in 2006-2007, the developers offered at 15-20 euros per square meter. m, financial institutions, taking over the project because of debts of the borrower, agree to give two to three euros per square meter. m

"A small perturbation on the trade market building plots occurred in the summer. And still more capacious and fair assessment of the past year is a phrase from the old Soviet comedy film: "Silence. And the dead with braids standing "- jokes CEO Latvian Real Estate Ivars Zherdinsh.

Specialist Ober Haus Christina tupan noted that the company felt the excitement from buyers of land in the fall. Appeared at least some demand. Queries of potential buyers could be divided into two main categories: either a very good place, or a very cheap offer. "Land in the horticultural cooperatives in Riga district bought for 2 000-3 000. The more expensive proposal remained unclaimed "- she says.

"But me personally in 2010 did not disappoint. We feel the increase in activity on the part of buyers, which was reflected in the number of transactions. If the so-called fat years (in 2006), our company was selling an average of three sites per month in their projects, in the spring and summer of 2010 we had two transactions on a monthly basis "- somewhat puzzled by the magazine and its portal vigorous statement of Andrew Walters, head of specializing in the development of township projects of the company Lange Pils. However, further conversation with him will put everything in its place: his positive attitude is not dropped out of the general situation described. "So what? Trade in 2010 was carried out at prices comparable to those that were in 2006? "- Are interested in him. "Of course not! - Does not negate the specialist. - They were 75% lower than in 2006. Nevertheless, in township projects with developed infrastructure the bottom has been reached, and even there was a slight increase in prices. For example, if the boundary Riga best sites last winter, were offered at 20-25 euros per square meter. m, by the end of autumn already 23-28 euros per square meter. m ".

But voicing this pleasant trend for brokers, Andrew Walters once said: "Only by no means impossible to say that it was of a wide scale. And then the reader the impression that the price increase is observed in all the land. Demand has become selective. A potential buyer first selects sites in the best places. In the Riga district, I assure you, township projects with good transport links, easy-access roads and infrastructure is not so much. Here they are interesting to potential buyers. Whereas in the villages of projects that exist only on paper or are raspartsellirovannye field where there is some well-trodden track of da stick switchboard - the situation is quite different. There's no activity, and developers, if the opportunity they have, are forced to fold up to a maximum price. Chapter Lange pils gave an example: at the court auction, which in 2010 sold off the banks incorporated in land in the "empty" the village in Stopinu parish, the transaction took place at 5-6 euros per square meter. m. Thus, the total price for the plot was 7 000-9 000. Outside the auction, similar to their qualitative characteristics of objects found a new owner for no more than 10 000-12 000. "It only works megadeshevy segment", - concluded Andrei Walters.

According to Guntars Kramensa, numerous cut in the desert margins around Riga building plots promise to stand undisturbed for a further year. Demand for them there. Today is cheaper to buy a house near Riga finished with a site than to bother all of this construction process itself. And yet in the settlement does not appear a certain number of houses, for its arrangement no one will undertake. A stream of potential buyers of land for private development in Riga and its suburbs who are going to actually buy, rather than just interested in the matter of curiosity, now not so great. According to experts, in 2010 by such customers came in hundreds, not thousands. One reason for this low activity due to the fact that banks are not funding the purchase of land. Those brokers with whom to chat and, remembered only a few cases where the Bank provided a loan of 50%. Yes, and then buying credited for the reason that the client that adorned both loan to build a house, was able to confirm its financial viability.

The collective image of an attractive site for construction, which has a chance to find a buyer in the current market conditions, is: no more 10 km from Riga, in a place where already paved roads (which are also clean!), All communications, more than half sites in the village must be built up and populated. Necessary - means of transport, preferably the presence of a reservoir - a river or lake. And finally, price. Even at the best of its characteristics the objects it should not exceed 20-30 euros per square meter. m
True, the latter requirement does not apply to a truly unique proposition. "There are different rules. So, we had a client who was looking for land near the lake. Year looked different options until he found what he liked. And paid for it the price that I can not name any HyperCheap nor supervygodnoy in these times. Instead, he got exactly what I was searching "- adds Christine tupan.

Land market in Riga and its suburbs - is not only the plots for private development. It is also a land for construction of apartment buildings and commercial facilities. This is agricultural land and forests. Interest in the first group is minimal. Although Ober Haus and points to the emergence in October and November, investors willing to consider the acquisition of such properties. Only their proposed price is rarely conforms to the needs of those who belong to these sites. Plus in the last year in the segment of new construction projects or develop large construction companies, or banks. Those and other property portfolio of land is full. Them at least a portion of his master, let alone to acquire new to say. Deal with areas for both multifamily and commercial construction are the character of the unit. And at very low prices, which take into account that the investor before you begin to develop a project on the purchased land, will wait a couple of years.

"Land for commercial land, which are located in the central streets, with a good flow of people and a convenient entrance for cars asked quite often. Sometimes their prices are such that more profitable to buy an existing building with the site. For example, we sell a portion of 2,400 square meters. m office building (over 700 square meters. m) to 250 euros per square meter. m ", - said Ivars Zherdinsh. Experts note that the commercial land in the past year, becoming only the businessmen, who see the prospects for their businesses in Latvia. Therefore ready to invest in the construction of their own warehouse, manufacturing or office space. And not so much for putting them out to others, but rather for their own needs.

"Our clients are investors interested in areas in the heart of Riga and Jurmala, but they are not willing to consider buying at prices that are offered. There's no liquidity - explains CEO Century21Baltwest Valery Engel. - Sellers must be very flexible. Was in the Old Town area, for which the owner wanted to get 2.5 million euros. Nobody took it. Cost is the owner of land to change the concept and decide on a joint venture for the construction of a hotel or apartment building, as co-investors appeared willing to become. "

Bright spot amid the rather sad picture of trafficking in land - agricultural land and forests. They demand, as before, is quite high. Buyers - Scandinavians, Germans and British, through the entities - the Russians. Most often, looking for even tens or hundreds of hectares at a price ranging from 500 to 1,000 lats per hectare. Forest take with an eye on the export of timber. Motivation for the purchase of agricultural land is its relative cheapness compared with the same Denmark and Sweden, and global trends of growth in demand for food.

To convince the brokers with whom we talked, agricultural land and forest land remain in demand in 2011. Whereas in other segments of the land market in Riga and Riga district expect much change in the situation with the transactions is not necessary. Those germs demand, which began to sprout in the wake of positive data about the general economic situation in the country, can ruin a new tax policy of the authorities in respect of the entire estate. Market and the buyer immediately react to it very painful. So, while it does not get used to the idea, until you understand what's what, the activity on his part should not wait. Unless, of course, it again will not go on HyperCheap proposals.

Opinion: What can we expect the land market in 2011?

Guntars Kramens, CEO Averts: «Once upon a time the land was bought as a safe investment. Now her as such a financial instrument is unlikely someone is considering. The real estate market in Latvia has a very heavy tax hit. And as he moved, I do not presume to predict. "

Andrew Walters, owner of Lange pils: «I think the first half of 2011 for the ground segment of the trade will take place under the sign of a lull. The reason for this will be a package of tax measures that came into force on 1 January. More hope for recovery. Hopefully, in 2011, land prices will remain stable with a slight increase. For their fall I do not see any reason: the prices that are now quite high for consumers. "

Christina tupan, a specialist company Ober Haus: «Falling land prices can certainly be sprovatsirovanno falling economy. While at the same time, those owners who have experienced financial problems, went to the market. Others sellers, if there is no financial commitment and their site has some competitive advantages, the sale is not in a hurry. They keep the price acceptable to their level. Much will depend on their adherence to principles. "

Content tags: Overseas property land
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