How likely is the rise in real estate prices in Latvia: expert forecasts

Latvia is one of the few European countries that did not show a rapid rise in housing prices in the first half of 2021. The sharpest jump was in Luxembourg. Real estate there has risen in price by 17%. Also, the leaders included such countries as Denmark, Lithuania, Czech Republic. Latvia ranked 6th from the bottom on this list with a 2.8% rise in price, overtaking Cyprus, Spain, Romania, Italy and Slovakia.

Should we expect further price hikes?

Experts note that in the near future, a rapid rise in prices for Latvian real estate is not expected. This is due to the following reasons:

• The country's banks are now giving mortgage loans with great accuracy, given the crisis situation. Because of this, demand is kept at a stable level, thereby restraining price increases.
• Large Latvian investors are very actively investing in real estate due to inflation, but for this they choose countries with a higher economic level.

However, another factor should be taken into account - housing prices in Europe as a whole are growing steadily. This cannot but affect the markets in individual countries (Latvia is no exception). Therefore, stabilization or reduction of prices for Latvian apartments and houses is not yet to be expected. The most likely option is a slow but steady rise in price.