Developer: Riga Apartment Market Growing Faster Than Tallinn's for the First Time

If until now the Riga new development market has been clearly behind Tallinn and Vilnius in terms of selection, transaction volumes and prices, then this year a change is expected, confirms Kristjan-Thor Vähi, head of Invego, which develops large-scale residential areas in both Latvia and Estonia.

Having begun preparations to enter the Latvian market already six years ago, Invego has in the last two years started the construction and sale of four residential areas. "We saw that the Riga real estate market has very solid growth potential and we want to be part of that growth," says Vähi, adding that today the company has work for at least the next ten years in Latvia's capital and its surrounding areas.

According to Vähi, Invego sold more homes in Riga than in Tallinn and its surroundings for the first time this year. "We have four active residential area developments in both capitals and their surroundings today, and in that sense it's good to compare progress. The result doesn't surprise us, because Riga's time seems to have come," comments Kristjan-Thor Vähi.

According to Invego's head, Riga's new development prices are still initially lower, but the gap between the two countries is narrowing. "Everything is moving along a familiar path - at first sales go faster in so-called budget products, but already there is growing interest in more expensive developments as well," notes Vähi, according to whom from today's prices and loan interest rates, there are more investment apartment buyers in Riga compared to Tallinn. "In our more expensive development Skanstes Rezidences, several apartments have been bought by Estonian investors, who also seem to believe in the market's growth potential. Interest has also been seen in investing in Vitolu Parks residential area," gives Vähi as examples.