Residential Real Estate - Latvia

Latvia

The Residential Real Estate market market in Latvia is forecasted to achieve a significant milestone, with a projected value of US$151.80bn by 2024.
This market is expected to demonstrate a steady annual growth rate (CAGR 2024-2029) of 4.40%, leading to a substantial expansion in market volume, reaching US$188.30bn by 2029.
It is worth noting that, on a global scale, China is anticipated to dominate the Real Estate sector, generating a remarkable value of US$112.9tn in 2024.
The demand for residential real estate in Latvia is surging due to the country's attractive investment climate and growing economy.

Key regions: Europe, Brazil, France, Asia, United States

Market

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Analyst Opinion

The Residential Real Estate market in Latvia has been experiencing significant growth and development in recent years. Customer preferences in the market have been shifting towards more modern and sustainable housing options. Buyers are increasingly looking for properties that are energy-efficient, equipped with smart home technology, and located in well-connected neighborhoods. There is also a growing demand for properties with amenities such as gyms, swimming pools, and green spaces. Additionally, there is a trend towards smaller and more affordable housing options, as younger buyers and first-time homeowners enter the market. One of the key trends in the market is the increasing popularity of urban living. Many buyers are looking for properties in the city centers or in close proximity to amenities such as restaurants, shops, and public transportation. This trend is driven by the desire for convenience and a vibrant lifestyle. On the other hand, there is also a demand for properties in suburban areas, as some buyers prefer the tranquility and space that these areas offer. Another trend in the market is the growing interest in real estate investment. Investors are attracted to the relatively low property prices in Latvia compared to other European countries, as well as the potential for rental income. This trend has led to an increase in the number of rental properties available in the market. Local special circumstances in Latvia also contribute to the development of the Residential Real Estate market. The country's geographical location and natural beauty make it an attractive destination for both tourists and expatriates. This has led to an increase in demand for second homes and vacation rentals. Additionally, the government has implemented various incentives and programs to attract foreign investors, further stimulating the real estate market. Underlying macroeconomic factors also play a role in the development of the Residential Real Estate market in Latvia. The country has experienced steady economic growth in recent years, which has contributed to an increase in disposable income and consumer confidence. Low interest rates and favorable mortgage conditions have also made it more affordable for individuals to purchase property. Furthermore, Latvia's integration into the European Union has opened up opportunities for foreign investment and increased market competitiveness. In conclusion, the Residential Real Estate market in Latvia is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The market is seeing a shift towards modern and sustainable housing options, as well as an increasing interest in urban living and real estate investment. These trends are supported by the country's natural beauty, government incentives, and favorable economic conditions.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.