In a recent article published by The Baltic Times, Arturs Miezis, Managing Partner at Hanseatic Alternative Investments, provided expert commentary on the current state of Latvia’s real estate market. The article discusses the significant challenges posed by high financing costs and how this environment is impacting both developers and potential buyers.
As noted in the Financial Accessibility Report 2024 by Latvijas Banka, Latvia is experiencing some of the lowest lending activity within the Eurozone, a trend that is forcing many developers to delay or even abandon their projects. This could create a ripple effect, leading to a shortage of new housing in the next few years, which in turn may push housing prices higher due to constrained supply.
Despite these challenges, Miezis highlights the strategic opportunities that exist for institutional investors like Hanseatic Alternative Investments. The current market conditions allow for the acquisition of residential properties at competitive prices, particularly as high borrowing costs reduce competition in the market. Additionally, with the growing demand for rental properties and energy-efficient buildings, Hanseatic is well-positioned to capitalize on long-term growth opportunities.
For more insights, you can read the full article here.