Until recently, Latvia , Estonia and Lithuania were among the few European
countries , where real estate transactions can be very good money.
In the debate about how many percent more expensive housing here for 10 years , experts
operated three-digit numbers. But rapid growth has changed ... at least
sharp fall .

It was expected that as soon as Latvia, Lithuania and Estonia joined the European Union,
Western corporations and start mass production opened here and create
new jobs, the economy of the Baltic countries would rise and prices
real estate will grow by leaps and bounds. At first it was so. Three years
traveled around the world back the agency study the British television channel Channel
4, in which the three Baltic countries held 4th place on the attractiveness
investments in square meters, second only to Romania, Poland and Portugal.
British experts, dubbed Latvia, Lithuania and Estonia, "Baltic tiger"
believed that from 2006 to 2016, the value of apartments in Riga will grow by 340%.
Latvia struggles with pessimism, however, to date, one bedroom apartment
in a typical house in the capital of Latvia is about 15 000 euros, which is almost
70% less than it was before the crisis. In the city of Daugavpils in the south-east
a similar version can be bought for 8,000 euros. It was in the Latvian market
Real estate has suffered more than in other Baltic countries. Fall
began in the spring of 2007 - six months before the world crisis, when
restrictions were imposed on lending. "At its peak, the market has been artificially
inflated. Was done a lot of speculative transactions, quickly changed when the objects
Owners - said Zigmars Turks from Century 21 BaltWest. - In
country felt stable, and were very affordable mortgages
they were given virtually everyone, with a minimum of instruments and also
a small percentage. " However, the "bubble" in the property market led to an increase
inflation - and the authorities were forced to start putting things in order. But strict
restrictions on the issuance of loans actually crossed out the demand for housing - and the market
went into a dive. Two-bedroom apartment in the Latvian capital today are
in the range 25 000-35 000. Two-bedroom - 40 000. In
the center of Riga respectable and spacious apartments can be bought for 150
000-200 000 euros - in this segment of the reduction was about 50%. Contrary
hopes that "the bottom has passed," the fall of the market in Latvia as a whole continues.
Back in May, spoke of "signs of stabilization", but the decline in June
average price is 4, and 5%. The government, seeking to escape from the economic
peak, taking unpopular measures, and as a result of the pessimism of the population
increases. Interestingly, the elite segment of this situation does not react
lower prices and the decline in offers - the owners simply do not exhibit
to market their property. Estonia - without a policy has not done a recession
Estonian approximately coincided with the Latvian, but here in the case including politics.
To some extent, the impetus was the history of the monument to the transfer of the Bronze
Soldier, which occurred in May 2007, "From now on because of dissatisfaction
Government people feel uncertain about their future.
Soon there stopped the transaction, and only then began to spread
news about the global financial crisis and began falling prices ", - notes
Edward Kostin, head of real estate Shade. According to experts, the cost of
Q1. m on the secondary market dropped by 40-60%, so that one-bedroom apartments
in Tallinn today offered to 20 000 to 40 000 euros, doubles
- 35 000-60 000 euros, two bedroom - 50 000-100 000. Prices
luxury apartments and farmhouse estate declined by about 20%, and vendors
try to hold them until better times. Lithuania Lithuania crisis in waiting
does not feel as strongly as in Latvia and Estonia, and he came here a lot
later. Reduction of macroeconomic indicators has been seen only in winter
2008-2009. When the country started to increase in unemployment and wage cuts.
Clearly, this is reflected in real estate transactions. One of the reasons
in which a few years ago the market was growing rapidly Lithuania, became tangible deficit
supply and new construction. Played a role and Scandinavian banks
with their low-cost mortgages. Today, the Lithuanians did not take out loans in euros, for fear of
denominations, and the loans in local currency terms are unfavorable. According to Saulius Vagonisa,
Representative consulting firm Ober-Haus, the Lithuanian real estate prices
Since December 2007, when the market was at its peak, decreased by 32%, actually
returned to the level of January 2006 The biggest drop was recorded
in the largest port city of Lithuania - Klaipeda, where the cost of 1 sq. km. m at the moment
boom was almost the same as in the capital Vilnius. Typical "odnushka" in
Vilnius today costs about 30 000-45 000, one bedroom apartment - 40
000-55 000. Three-room apartments are rarely bought, their prices fluctuate
from 45 000 to 70 000 euros. On the demand side, the people who are interested
Real estate in Lithuania, a few, but many potential buyers, it seems,
took a wait. "Paradoxically, falling prices, and attendance portal
in the Lithuanian real estate is growing, "- says Saulius Vagonis. Expert
sure that for some time prices will fall, but it should have a positive
affect the number of transactions. Do not forget about the plans for the Baltic states as soon as possible
rather go to the European currency, "I think that when he announced the date of transition
to the euro in Estonia to start panic buying everything, "- said Edward Kostin
and agree with him specialists in Lithuania and Latvia. Resorts are always in the price of Real Estate
in the capitals of interest mostly to locals and foreigners often choose
resort areas. In all three countries the cost of holiday home has decreased
less than the national average, and that this market is now gradually
returns to demand - from foreigners, especially Russians. In
Lithuania interest seaside town of Palanga, spa resort
Druskininkai, as well as unique Curonian Spit - "a museum of natural areas,"
- Included in 2000 in the UNESCO World Heritage Site. Before the crisis, housing
here can be purchased for 4000-7000, now - 2000-4500 EUR per 1 sq. km. m
Homes during the boom of cost from 600 000 to 2 million euros, and now house the area
100 square meters. m can be purchased for 450 000 euros, but hardly appropriate bargaining: such
proposals on the Curonian Spit naperechet. In Estonia, according to Edward Kostin
the greatest interest among the Russians is Narva. "There are Russian-speaking environment
close to Russia, there is a gorgeous sandy beach, sea, pine forest, there
good ecology - says the expert. - You can think about investing,
but mainly real estate in most coastal town of Narva and Narva-JГµesuu
buy for personal use. " One-bedroom apartments in Narva now
cost of 10 000 euros, the price of two bedroom apartments are in the range
15 000-30 000, three-room reach 80 000. You can buy a home,
but new projects in Narva on sale no offer basically the old objects,
requiring major repairs, and plots the value of 30 000 to 250 000
Euro. In Latvia, most Russian-speakers live in eastern region
- Latgale. There are many lakes and is very well developed eco-tourism. New
cottage on the lake with all amenities, access road, 34 hectares of land
and part of the lake is 270 000 euros. A total of 40 000 euros in Latgale can
buy an uninhabited island in a lake and a small section on the "mainland", where
convenient access to possessions on the boat. However, Latvia's most attractive
region remains in Jurmala, where, according to Irina Larionova from Moscow
representation of the company Crossroads SIA, a small house can be bought for
150 000-250 000. Luxurious mansion 300-800 square meters. m on the first line of
Sea, with the land may be sold for more than 800 000 euros.
In other coastal areas of Latvia the house with all utilities cost
maximum of 150 000 euros. Similar variations within countries are up to 80
000.

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