ARCO REAL ESTATE

• “Jūrmala still is not only an attractive place for recreation, but also a segment for a stable investment in real estate”, informs Ms Oļesja Bogodistaja, Head of the International Department of the ARCO REAL ESTATE.

The rules are more frequently dictated not by buyers but by the sellers of new projects in Jūrmala

“Jūrmala still is not only an attractive place for recreation, but also a segment for a stable investment in real estate”, informs Ms Oļesja Bogodistaja, Head of the International Department of the ARCO REAL ESTATE.

In 2012, like in 2011, the price differentiation of properties situated in the new projects depending on the location, level and quality, became more and more apparent in Jūrmala. The real estate market of Jūrmala ceased to live in unison with the rest of the Latvian real estate market a long time ago. With each month the number of properties offered in Jūrmala will become more limited, and this shows an active interest of buyers and their willingness to pay a high enough price for a property. Most real estate developers are selling apartment reservations or apartments in buildings under construction.

As to upmarket properties, the most active buyers still are citizens of Russia, Ukraine, Kazakhstan and Belarus. In the high-end projects currently offered in the market, the prices are by 20 - 50% higher than 2 - 3 years before, and buyers are willing to buy the properties.

Active construction is going on in Jūrmala. According to the data available to ARCO REAL ESTATE, about 300 apartments located in various level projects of different development stages are being offered for sale. “Number of apartments with sea views is limited. In a number of residential facilities located in Jūrmala the last vacant apartments are offered already for prices that existed in 2006 and 2007. We can say that the rules are more and more frequently dictated not by buyers but by the sellers of new projects. In general, the prices for apartments in the Jūrmala new projects located on the sea side are in the range from 3 000 to 7 500 EUR/m², and between 1 300 and 3 500 EUR/m² in the area between the river and railroad tracks”, informs Ms O.Bogodistaja.

Prices in the Jūrmala new projects are very different and vary depending on the location of the project, class, level, and additional benefits offered, such as fenced area, children's playground, parking, physical guarding and other. “In some projects the prices have already reached the level of the so-called “fat years”; in some new projects the apartments are being offered at the price of 5000 – 8000 EUR/m²”, says Ms O.Bogodistaja. The most demanded properties in the category of apartments to be purchased, are apartments with 2-3 bedrooms, with area of 100-130m², on the sea side, between Lielupe and Dubulti, preferably renovated, at the price of 400 000 – 500 000 EUR, but in the segment of private houses, the most demanded ones are those with area of 120-250m², with high-quality renovation, in the price category of 400 000 – 450 000 EUR. “Paradoxically, but there is a shortage of new apartments and private houses that meet the demand”, explains Ms O.Bogodistaja

The price difference between what the local residents can afford and what Eastern investors can afford is continuously increasing because the new project prices in Jūrmala even more clearly differ from the wages of local people and the development of Latvian economy. Local residents have become more cautious.

Additional information:

ARCO REAL ESTATE 

Oļesja Bogodistaja

Head of the International Department

Brīvības Street 39, Riga, LV 1010, Latvia
+371 6736 5555

+371 2868 8666
www.arcoreal.lv

08.05.2012.