Aigars Šmits, the head of "ARCO REAL ESTATE", has been approved as the Chairman of the Board of the Latvian Real Estate Association (LANĪDA). The Board will continue to work in the current composition, informs Ingrīda Drazdovska, Executive Director of the Association.
In an express interview, Aigars Šmits reveals what he plans to do in his new position and what scenarios for the development of the real estate market are expected.
- What do you think LANĪDA is today?
“LANĪDA is and will be a fraternity of real estate professionals. Membership in this organization is a mark of the agent's quality.”
- What are the 1-3 things or works that will be your priority in the nearest future? Why?
“My priority as the Chairman of the Board of the Association will continue to be raising the prestige of the real estate agent profession, as well as improving the professionalism. There is a positive trend in this respect, with the adoption of the law on intermediaries, which means that the profession of broker is finally recognized by the state after a long time, but this is only the beginning. This normative act, like any other, is not complete, therefore my work as the Chairman of the Board will be related to the improvement of the law, so that it would correspond to the way most Latvian real estate companies currently work.”
- Which real estate market development scenario seems more realistic this year - is it expected to fall, stagnate, grow, prosper? Why?
“Reasonable forecasts can only be made if there is confidence in both regulatory and economic stability. This year, forecasts for the development of the real estate market may also be significantly affected by the pandemic and the planned vaccination. Any changes in these factors also affect the forecasts. 2020 was a fateful year for many industries, but it was certainly not the case for the real estate industry, except, of course, for the short-term rental segment. In my opinion, the inability of the pandemic to affect the real estate market is explained by the fact that people were prevented from traveling or otherwise spending money due to the restrictions imposed. Perhaps this is what stimulated the real estate sector, as people improved their living conditions by buying a home. Seeing the current events, I assume that the market will develop steadily. I definitely don't want to scare anyone with a rise in prices, but it will be inevitable, which we are already seeing in the segment of new housing projects. And in answer to the usual question of what to do now - buy or sell, I would advise not to be obsessed with calculations "how much will I earn? Or how much have I lost", but simply to continue living in comfort and divert energy to more enjoyable activities. Speaking seriously, it doesn't matter how much and what you have purchased, it is important that you are able to meet your financial obligations. Profit or loss is recorded only when the property is sold. There will always be some dynamics in the market, so the value of the property may increase or decrease. I certainly do not see stagnation in the near future.”