We will help you make the right choice for investing in Latvia!
For over 18 years, Mercury Group has been a reliable partner in finding real estate and in the implementation of investment projects. We know what to offer you, we know the real estate market very well, and we know all the aspects of implementing an investment object and will provide you with accurate profit forecasts. Our professionals are constantly monitoring changes in the real estate and business markets. We are pleased to have working relationships with both small and large international companies, and there are no projects too small or too big for our company.
We offer a comprehensive service for prospective investors – just invest in a property and let us do the rest, taking care of all relevant concerns and problems. Over the years, we have accumulated extensive contacts with property owners, agencies and lending institutions. We constantly look for promising properties to purchase and are skilled at negotiating with owners to purchase the property at the most beneficial price. All properties are bought in the investor’s name and are registered in the Land Register. Then the property, at the investor’s discretion, is renovated and the premises are designed or refurbished (including furniture). We also find tenants and provide a full leasing service, with monthly rent transfers to the investor. Thus, our investors receive all the benefits of investing in real estate, without having to perform the daily routine tasks.
- selection and advice in selecting the object for an investment;
- full market analysis (macroeconomic and microeconomic factors), profit forecasts, return on investment forecasts, options for obtaining a loan, etc.;
- cash flow analysis;
- comparison of the alternative options;
- property valuation;
- negotiations with the seller, in order to reduce the purchase price;
- advice on property development;
- inspection of the building structures;
- professional advice in all legal issues: legislation of the Republic of Latvia, taxation, the finer points of business establishment regulations, investments, advantages for foreigners, etc.;
- legal support to complete the deal;
- assistance in implementation of the object of investment;
- property management;
- assistance in obtaining a mortgage, preparation of documents for the banks, and communications with Latvian banks;
- arrangements for calculating profits from the purchased property;
- assistance in moving for the investor and their family members;
- management of construction work and property development;
- leasing management;
- searches for co-founders and partners;
- assistance in obtaining a residence permit, after purchasing real estate inLatvia;
… and much more.
Latvia, as a European Union member state, has firmly established itself as one of the most promising regions for property investments. Unlike other Eastern European countries, Latvia has a strategically advantageous geographical location, a well-developed logistics sector, good air service, simple and fast access to Rīga, and the Latvian currency is stable (and its exchange rate is tied to the Euro), all of which makes it attractive for foreign investors. Rīga has earned the trust of investors because of its location, its developed infrastructure, an extensive real estate market, safe and reliable living conditions, and favourable recreation and business sectors. Politically, it is a safe and peaceful country. The activity of investors has mainly concentrated on the apartments in Central Rīga, where the buildings are monuments of architecture, and properties in Jūrmala with expensive and high-quality new developments. Despite the fact thatLatviais still feeling the effects of the recent financial crisis, it has moved on and is looking to the future. Currently, the real estate market is reviving, and interest from foreign investors is growing strongly.
Facts suggest the following:
- On 1 January 2014, Latvia joined the Eurozone. This has attracted the attention of potential investors and has made Latvia one of the most steadily developing European Union countries.
- From 2010 to 2014, thanks to the programme for obtaining temporary residence permits, investments in the Latvian economy amounted to over 800 million euros, of which 659 million euros were invested in the real estate sector.
- According to statistical data, investments in Latvian real estate are growing every year, with an average increase of about 70% when compared with the previous year.
- In the last 3 years, 9670 Latvian residence permits were obtained by people from 38 countries, of which 6883 were Russian citizens.
- For 7853 people, the reason for obtaining a residence permit was the purchase of real estate in Latvia.
- In 2013, the increase of real estate purchases by foreign nationals, with subsequent registration for a residence permit, was +54% in Rīga and +30% in Jūrmala.
- In June 2014, Fitch raised the credit rating of Latvia. This was the third increase of the credit rating o fLatvia within a few months, which indicates an appreciation of the achievements of the state and the whole Latvian society.
- Three years before that, in June 2011. Latvia entered the top ten rankings for investors’ confidence, on a par with Germany, Franceand Israel(according to research by the Gordon Rock International Real Estate Agency).
The following factors were evaluated:
- Stability of the real estate sector
- Liquidity of properties legislative protection of the investors' interests
- Availability of an insurance system for development projects
- Possibility for investors to obtain a residence permit or a simplified visa.
Currently, there is a lot of activity is taking place in the apartment market in Central Rīga and in the real estate market in Jūrmala, while interest is also growing for large commercial properties. This has been stimulated by the law stating that foreign nationals may obtain a residence permit in exchange for investments in business development and real estate, which was adopted in July 2010. The potential of real estate is usually expressed by three factors: the potential to lease, the potential to resell and, of course, the potential to increase the property value. In Latvia today, the potential in all three areas is huge, and currently, Latviais ahead of countries such as Spain, Portugal and Italy, where properties are still expensive, and construction and maintenance costs are 3 to 4 times higher than similar expenses inLatvia. Last year, countries in Central and Eastern Europe (including Latvia) had the second best results from property investments.
According to forecasts, Latvia's accession to the Eurozone makes it a very attractive region for current investments, since prices are expected to rise in a year’s time.
According to recent statistics, the average price for an apartment in a new project is approximately 2,000 to 4,000 EUR/m2. Investors from Russia are usually the first to be interested in these offers, and their interest is particularly focused on apartments in the Quiet Centre or the Old Town with areas of 50 to 160 m2, in new or renovated buildings with convenient facilities. The price for a property in the Old City or the historic centre of Rīga is several times higher than the average prices in other cities and regions. Also, an increased number of investments in land parcels, as well as residential and commercial properties in Jūrmala and in Central Rīga are expected.
If you need advice in any matter related to an investment, our professional experts will answer any questions by phone: + 371 29102085 or by e-mail: [email protected]
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