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We will publish our first Latvian investment opportunity on Friday morning. A 2 – year subordinated loan will be paying 15% annual interest to its investors.
“The fundamental factors give reason to believe that Riga will have the fastest growth in apartment prices among the Baltic countries. This is already supported by June 2016 statistics, when apartment prices grew twice as much as in Vilnius or Tallinn.” says Loit Linnupõld, CEO of Crowdestate.eu.
The average apartment prices in Riga are on average about 33% cheaper than in Tallinn or Vilnius. The housing affordability index that takes into account the net income of families, shows that new apartments are much more affordable in Riga than they are in Vilnius or Tallinn.
The net salary levels in Latvia are today about 27% higher than the peak achieved before the 2008 financial crisis. Total loan amounts issued by banks for house purchase have constantly been growing over the last several years in Vilnius and Tallinn and are today about 200m EUR higher than they were at the peak. Meanwhile, loan amounts in Latvia have been in steady decline and stand today at 2,7 billion EUR lower compared to the level in 2008. This drop has stabilized in the past months and banks expect the loan amounts to start growing significantly in the coming years.
“Liepziedi project is all about functionality and affordability. Located right on the border of Mezaparks, it offers the cheapest new home that has the entrance to Mezaparks and all the needed infrastructure, like supermarkets and public transportation, within the radius of a few hundred meters” says Aadu Oja, managing partner of Liepziedi project. “Our cheaper apartments can be bought with a downpayment of only 2,500 euros and with a monthly mortgage payment of less than 100 euros. I believe this is by far the most affordable offer in Riga today.”
“We are very excited to be selling the Liepziedi apartments. There is a clear need for this kind of affordable developments in Riga and very little has been done recently by developers at that price level.” commented Ieva Jansone, head of the residential department of Arco Real Estate.