Property Investments in Latvia

At Sunshine Estates we recommend the Baltics to currently represent an excellent opportunity for the Foreign Investor. In addition, there are specific aspects to the Latvian economy that make it a particularly attractive proposition. Below, we have compiled 10 reasons why you should consider such an investment:

• Membership to the EU in May 2004 has fuelled an increase in European countries undertaking business in Latvia.
• Gross domestic product (GDP) at constant prices increased by 7.4% in 2003. The Bank of Latvia maintains its former real GDP growth forecast for 2004 at 7.5%.

• The Latvian currency, Lat, is pegged to the SDR currency basket (a unit composed of USD, EUR, GBP and JPY) and accordingly, is one of the most stable currencies in Europe. Current plans are to peg the Lat to the euro from the last day of 2005.
• Property prices have been rising in Latvia over the past few years, the most significant increases being seen in the Capital, Riga, where some areas saw price rises of up to 40% last year.
• Demand for furnished apartments is high. Expected monthly rental incomes are between $500-1200.
• Interest rates have decreased significantly and are the lowest ever, starting at 4.5%
• There are no restrictions upon foreigners wishing to buy and sell property in Latvia.
• Latvia lies at the crossroads of East and West. Latvia’s modern transportation and communication links provide a safe and reliable bridge for trade with former Soviet Union and Nordic countries.
• Latvia is largely untouched with historic buildings dating back to the days of the great trading in the Hanseatic League. In 2001 Old Riga celebrated its 800th birthday.
• Latvia enjoys over 12,000 rivers and 3,000 lakes providing numerous opportunities for boating, walking or simply enjoying the outdoors.