Riga has outgrown it's affordability for the moment and prices, especially in Old Town are dropping slightly, nothing to panic about but there is a definite slowdown in the larket accompanied by the expected levelling off of prices.
I believe that elsewhere in the country there are some great opportunities. I am part owner of 300ha near Dobele. We are only a few months way now from getting the land re-zoned to allow for a golf course and hotel development along with some very exclusive housing plots. We have been working on this project for nearly three years and there is light at the end of the tunnel!
hi thats good yto know i am doing a number of developments in daugavpils which is near to the border of belarus i am working directly with the city officals with them which is making it alot simpler to get whats needed done and also there are plans to develop and open the old airport for international useage i have also tied in with some of the larger land and property owners in the area to secure as much as i can before the airport becomes offical
We bought a couple of properties in the #3 city of Liepaja in 2005. They were old communist styly brick blocks, but they were only 300m from a beautiful beach.
By the end of 2006, they had gone up around 150%.
I could see that there were all of the signs of a bubble happening in Latvia and wanted to get out then, but my ex-girlfriend decided we should keep them.
Big mistake. Since then they have halved in value.
With the exception of Iceland, Latvia is the country that is most affected in the world by the credit crunch. All of the economic indicators for the country are terrible - a contraction in GDP of 10% forecase for 2009, 10% inflation. The country is a complete mess.
I'm struggling to think of a worse country to invest in right now than Latvia.