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Published: July 2008
Next Issue Scheduled: January 2009

Researched and written on behalf of Property Secrets' existing investors in this market, the Latvia Market Performance Report contains everything an investor needs to know in order to judge the performance of the market in general and their investment in particular.

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In this report...

Contained within the Latvia Market Performance Report you will find:

• Current Macro-Economic Data
• Mortgage Market Snapshot & Development
• Property Market Overview. Includes:
• Local Market Data
• Supply & Demand Statistics
• Sales Market Data
• Rental Market Data
• Latest Developments
• Market Performance Summary

Your Latvia Market Performance Report will help you:

• Understand how well Property Secrets sourced investments are performing
• Decide whether or not investing in this market is right for you
• Consider investing through Property Secrets in general

Key information for YOU as an investor or potential investor in Latvia is the current demand for new build property versus supply, current and expected price levels and, perhaps most importantly, WHERE the demand is coming from. The Latvia Market Performance Report gives you that information.

Extracts

From The Economic Brief

"The latest macroeconomic indicators suggest that the boom sustained by the domestic demand will be replaced by slower growth and much lower consumption.

"Clearly, Latvian economy has entered a new cycle and the spending euphoria is over."

From The Mortgage Market Snapshot

"Higher interest rates are a result of the credit crunch. Banks have also started to apply higher margins as the lending has become more expensive. Currently the 12 month Rigibor is 9%, while the six month Rigibor is 7.32%.

"Additionally, Bank of Latvia has increased the refinancing rate from 5.5%to 6% in 2007. Marginal lending facility rate is currently 7.5%."

"Following on from this, mortgage lending is now less attractive than it was a year ago and is not able to support the price growth any more. Lower affordability of locals is mirrored by a stagnant and/or a falling in value market (subject to the segment and location)."

From The Property Market Overview

"Demographics in Riga are, in general, unfavourable to support further growth in the housing market. In these terms Riga (along with Budapest) stands out in the CEE region, in which main cities, especially capital cities, experience a growth in population.

"Only the current size of the average household in Riga (2.3 people) and the fact that around 23% of the population is in the household formation age (20-34), suggests some potential for further housing demand."

From The Summary

"Riga is currently a buyers' market and selling is not the best option at the moment. Renting might be difficult as well, due to the oversupply. The only investment strategy at the moment is to reduce the price by up to 15% and try to exit the market. If an investor bought at the beginning of the growth curve, his property was likely to have increased by at least 30-50% in value. Selling with a reduced price now might still bring some profit."