He expressed hope that  introduction of the so-called laid-down keys principle would imply a solution acceptable to all involved parties and it would enhance housing market development rather than be an impediment to it. Furthermore, clarity of the temporary residence permit is vital as well. Stability and certainty is important to foreign investors - law amendments made every half-year will have a bad impact on real estate market, emphasized A.Riekstins.

Foreign demand was cut short as recently as in September due to minimum investment threshold required for acquisition of temporary residence permit having been increased to 250k EUR throughout the country. The representative of Latio stresses that the regions having had a chance to attract a part of foreign buyers thanks to the different investment thresholds lately, are knocked out of the game nearly completely now. Buyers from Russia are deterred from property purchase due to the probability that granting of temporary residence permits might be discontinued to nationals of this country.

According to the specialist of Latio, prices became stable on new apartment market in Riga in 2014. As compared with the situation over several recent years when new apartment prices were adding 10-15% quarterly within a year's limits, the climb was insignificant in 2014. This year, the least new apartment price increase was observed in Old Riga where the prices have arrived at the pre-crisis rates.

Source: BNS