The property boom of Latvia

September 23rd, 2007 by Latvia


 

Yeah, Latvia and Bulgaria are still the ones to have higher property prices and market of real estate soaring up to the sky.

Many private houses and apartment blocks are yet to be built, besides the market of soviet times houses also keeps selling good. The prices on rent have gotten higher than a year before, and still you don’t hear someone complaining that it is too much.

Experts have given warnings that this property bubble will burst, if measures from government will not be taken, but people say it’s still a profitable business for many local millionaires, that’s is reason why this market is still hot – in other words, it’s not in land lords’ interest to chill it down..

The question is – when will the prices stop, and shall they also drop?..

Author of this blog post: Helmut
Posted in category: News

5 comments:

  1. It’s not a question on when *will* the Latvian property market cool down, but when *did* it start to cool.

    The answer is at the end of March 2007. In order to cool down the overheating economy, the Latvian government made it a lot harder for people to get credit (they needed to provide a lot more information regarding their earnings). This slowed down the number of transactions considerably and then prices started to drop by 3-5% per month from may onwards.

    Full details of the current state of the property market in Latvia can be found at:

    http://www.propertastic.com/index.php?page=ov&lang=en&ccc=Latvia

  2. thanks for the comment, Nick!
    yeah, i’ve heard it’s not that easy now to get credit as it was before, but i can’t really comment on that, because i’m not into this process of property at the moment – not an objective viewer ;)
    but i agree, prices can’t rise forever, and i’m waiting for this situation to become more stable.

  3. […] The property boom of LatviaYeah, Latvia and Bulgaria are still the ones to have higher property prices and market of real estate soaring up to the sky. Many private houses and apartment blocks are yet to be built, besides the market of soviet times houses also … […]

  4. […] The property boom of LatviaExperts have given warnings that this property bubble will burst, if measures from government will not be taken, but people say it’s still a profitable business for many local millionaires, that’s is reason why this market is still hot … […]

  5. […] The property boom of LatviaExperts have given warnings that this property bubble will burst, if measures from government will not be taken, but people say it’s still a profitable business for many local millionaires, that’s is reason why this market is still hot … […]

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