Kristjan-Thor Vähi: Riga's New Development Market Bypassed Tallinn
For the first time in the last decade, more new apartments were sold in Riga in the first half of the year than in Tallinn, confirms Kristjan-Thor Vähi, head of Invego, which leads major developments in both cities.
In the first half of the year, 761 new apartment sales transactions were made in Riga and 601 in Tallinn, according to data from Colliers Latvia cited by Invego's head. "There is nothing surprising about this, as Riga has approximately 200,000 more residents and the revitalization of the real estate market there has been evident over the past year. At the same time, these numbers are not tragic for Tallinn either, as Latvians are only just beginning to slowly catch up with the significant lag that has accumulated over the years," confirms Vähi.
According to Invego's head, a key reason is more affordable prices. "While salaries in Tallinn are lagging behind real estate prices, it is the opposite in Riga - salaries and therefore also borrowing capacity have grown faster than prices. New apartment sales prices in Latvia are still up to 30 percent cheaper," explains Vähi and adds that the current year's interest rate environment has also been favorable to market revitalization. In Invego's own sales figures, Estonia remained ahead with 49 transactions compared to Latvia's 35 sold homes, but according to Vähi, the gap is closing rapidly. "I am quite confident that in the second half of the year, Invego will already be selling more homes in Riga than in Tallinn. Estonian developments have had a time advantage so far, because we have a number of new homes that can be moved into immediately and this keeps the number of transactions high," explains Vähi, pointing out that in Estonia, Invego can offer ready-made townhouses in Uus-Järveküla as well as apartments in the Luccaranna and Keila Pargikodude residential quarters. In Latvia, Invego is developing six residential quarters, two of which began sales in the last two weeks.
Invego is a next-generation real estate developer operating in three countries, specializing in creating large residential areas and business quarters with integrated concepts that create urban spaces of the future. Invego group companies in Estonia, Latvia and Portugal currently have some 30 different development projects in the works. Invego has developed 150,000 m2 including 1,300 homes and more than 50,000 m2 of commercial space, with another 450,000 m2 of residential and commercial real estate in progress.
Among real estate development companies in Tallinn and its surrounding area, Invego ranks second in terms of number of new homes sold over the last five years with 900 homes. Its largest completed developments to date are Vana-Peetri, Tiskreoja and Tabasalu Kodu, and the currently ongoing Luccaranna, Uus-Järveküla and Keila Pargikodude residential quarters.
In Latvia's capital, Invego is developing the residential quarters Vitolu Parks and Mārupes Sirds, together with development partner Reterra Parka Kvartals, Skanstes Rezidences and Miera Rezidences, and townhouses in the Vide Adaži development in the immediate vicinity of Riga.
In southern Portugal, the 65-hectare Silves Hills development is underway with 154 villas, which are suitable for both year-round living and seasonal use.
