Real estate market in Latvia: current forecast

November 23, 2021
Real estate market in Latvia: current forecast
Despite the fact that the cost of housing in Latvia a year ago was relatively stable (and in some regions prices were falling altogether), experts predict its growth in the near future.

Despite the fact that the cost of housing in Latvia a year ago was relatively stable (and in some regions prices were falling altogether), experts predict its growth in the near future. This trend is due to several factors:

  • the weakening of quarantine restrictions, which influenced the growth of demand for housing, including from foreign investors;
  • general rise in prices in all market segments, provoked by inflation.

It is worth noting that experts do not expect rapid inflation, since the country is witnessing a rise in GDP - it is expected that in 2021 it will reach 4.7%, which is higher than the previously predicted figure.

What will happen to interest rates?

All these circumstances can directly affect the level of interest rates on mortgage loans. However, experts are confident that due to the fact that salaries in the country are not currently increasing, there is a chance that the Central Bank will not increase interest rates until the second half of 2024.

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Alexandra Meyer
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Alexandra Meyer
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