On Friday, November 4, a delegation of the real estate company "ARCO REAL ESTATE" went to Tallinn to visit their colleagues from “ARCO VARA” in order to learn about the Estonian real estate market, to gain new knowledge with the intention of implementing the best customer service experience in Latvia as well. During the experience exchange trip, the Latvian delegation was represented by a wide range of specialists - company management, heads of departments, agents, valuators and other specialists.
According to Mr. Aigars Šmits, Chairman of the Board of "ARCO REAL ESTATE", the main purpose of the visit to the Tallinn office was to understand the differences in the real estate industry between the two neighboring countries and to restore the flow of current information between the countries. "Knowing the neighboring country's market and statistical data makes it easier to predict the development scenarios of our industry. Having seen the growth of Tallinn firsthand and based on what my colleagues have said, I can say that the Estonian capital is several steps ahead in terms of real estate market development."
One of the most significant differences is the fact that in Estonia, about 80 % of all transactions take place with the involvement of an intermediary, whereas in Latvia, the proportion of transactions in which mediation services are provided is only 20 % of cases. Mr. Aigars Šmits explains this difference by the fact that there is a large proportion of standard-type apartment transactions in Latvia and that the parties involved in such transactions often choose to settle such transactions on their own, taking unnecessary risks. However, despite the peculiarities of the real estate market of Tallinn and Riga, the Estonian society treats transactions in general more responsibly and, entrusting the purchase or sale of real estate to professionals, thinks about the security of transactions, according to the chairman of the board of "ARCO REAL ESTATE".
During the visit, the "ARCO REAL ESTATE" delegation had the opportunity to visit the "Kodulahe" project developed by Estonian colleagues, where the next round of construction works is currently underway - despite the increase in the prices of energy resources and building materials. The average price per square meter in this project, located 10-15 minutes' drive from the center of Tallinn, is 4,300 euros, which is almost twice as expensive as similar projects in Latvia. Ms Ieva Jansone, a Member of the Board and Head of the Sales Department of "ARCO REAL ESTATE", explains the price difference as follows: "One of the most important reasons is that Estonia is one of Europe's leading IT centers, which significantly increases the overall solvency of society. Moreover, in the conditions of rising inflation, when Estonians are concerned about the depreciation of money, the demand for new housing has grown significantly. And high demand inevitably leads to an increase in apartment prices."
The experience exchange seminar led by Estonia's best real estate agent Liaa Koreline also discussed legal issues, customer service culture, personnel selection and marketing issues. At the end of the official part, "ARCO REAL ESTATE" fully enjoyed the opportunities provided by Tallinn in the field of recreation and entertainment, getting to know the capital from different points of view, enjoying a fine meal and engaging in social activities.