DTZ and EnterInvest describe how the Belarusians invest in Latvian real estate

 

Riga En

 

Belarus ranks the fourth among CIS countries in terms of number of individuals that invest in Latvian real estate.

DTZ-Baltics together with its partner in Belarus – EnterInvest – studied involvement of CIS investors in purchase of real estate in Latvia. According to the study, which was based on the data from the State Land Service in Latvia, Belarusians are among top 5 five countries purchasing real estate in Latvia.  Belarusian investors mostly focus on residential property located in good districts of major cities. 

In most cases the Belarusians buy real estate property in Latvia with a view to get residence permit.  So, for example, between 2010 and May 2013 Belarus became the fourth by number of applications for residence permits: Russia – 4 573 applications, Ukraine - 489, Kazakhstan – 331, Belarus - 158, other CIS countries – 358, etc.   


The most significant flow of direct foreign investment (about 90%) accounts for real estate in Riga and Jurmala city centers, major interest of investors is focused on modern residential developments.

Statistics shows that the foreign investors’ interest towards Baltic real estate has been growing steadily in recent years. According to preliminary forecast, total number of transactions with investors will reach 1300 by the end of 2013. Total monetary turnover will amount to EUR 250 million. As a comparison, 79 transactions were made in 2010, 609 in 2011 and 1012 in 2012.   

Total monetary turnover as may be assumed will amount to EUR 600 million, while total number of transactions will reach 3000, whereof 56% are accounted for Riga and 30% - for Jurmala. 

It worth noting that during economic recession in Latvia quite a number of residential development projects was suspended. Foreign purchasers were the driver that breathed new life into residential real estate sector in Baltic States. In past three years, the demand for apartments in Riga and Jurmala showed such growth that now most objects even at the design stage are developed to meet the requirements of foreign buyers.  



EJ.BY