Expert: Latvia Real Estate Market Trend is Up, Invego Bond Success Confirms This

The Latvian real estate market, which has been in the shadow of its neighbors for years, is gaining momentum, as evidenced by the significantly faster addition of new development projects and growing interest in investment apartments, as well as strong interest from local investors in Invego bonds, confirms Daniil Aal, head of business operations at Estateguru, a digital financing platform for real estate projects.

Daniil Aal considers the strong interest from Latvian investors in Invego bonds, which became public today, as an important indicator of general sentiment. "If they are already subscribing to Estonian developer's Latvia-oriented bonds in such large volumes, then that is a very clear sign of the potential of the real estate market. If Latvians themselves believe that the market is working, then in all likelihood it is," comments Aal.

According to Daniil Aal, Estonian developers are very strongly represented in Riga today and their reputation in the local market is good. "For Estonian developers, operating in Latvia is a way to diversify risk, as they are not dependent on the development of just one market. Comparable real estate prices in Riga are up to a third cheaper than in Tallinn. At the same time, interest rates remain low, average wages have grown by 23% over two years, and loan capacity is good. Understandably, this motivates developers to operate and the market to move," adds Aal, whose words are confirmed by Estateguru's portfolio analysis, showing that the Latvian market has become increasingly active over the past year. "The number of projects financed in Latvia in our portfolio grew by 43% last year compared to the year before, and the number of new applications continues to grow," describes Aal recent trends.

According to Daniil Aal, in addition to local homebuyers, the Latvian market is also home to rental property investors from Estonia and Lithuania, whose safe and convenient property purchases in the Latvian market are in turn ready to be financed by Estateguru platform loan investors. "If Latvian banks expect previous cash flow in Latvia when financing rental investors, then through the Estateguru platform, borrowing only requires the property acquired in Latvia as collateral," compares Aal.

Last year, Estateguru investors financed new real estate projects worth more than 80 million euros. Aal notes that small investors today have an even easier time actively engaging in investing thanks to legislative changes that came into force this year, which now allow investment account funds to be placed in financing platforms.

Estateguru is Europe's leading real estate lending platform, offering real estate-backed loans to small and medium-sized businesses and attractive returns to thousands of investors in financing their loans.

By bringing together developers and investors, projects become reality that make our living environment more modern, energy-efficient, and more beautiful.

Estateguru has helped realize over 7,000 real estate projects, financing them with a total of more than 850 million euros. Over 160,000 investors from more than 100 countries have joined the platform, and the average historical return to investors has been 10.15%.