Investment Property in Riga

Invest in Real Estate in Riga

Investment Property in Riga
Investment Property in Riga

Riga property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Riga .

Search Map of Riga Investment Real Estate

Riga (; Latvian: Rīga [ˈriːɡa] (listen), Livonian: Rīgõ) is the capital and largest city of Latvia and is home to 605,802 inhabitants which is a third of Latvia’s population. The city lies on the Gulf of Riga at the mouth of the Daugava river where it meets the Baltic Sea. Riga’s territory covers 307.17 km2 (118.60 sq mi) and lies 1–10 m (3.3–32.8 ft) above sea level, on a flat and sandy plain.

Riga was founded in 1201 and is a former Hanseatic League member. Riga’s historical centre is a UNESCO World Heritage Site, noted for its Art Nouveau/Jugendstil architecture and 19th century wooden architecture. Riga was the European Capital of Culture in 2014, along with Umeå in Sweden. Riga hosted the 2006 NATO Summit, the Eurovision Song Contest 2003, the 2006 IIHF Men’s World Ice Hockey Championships, 2013 World Women’s Curling Championship and the 2021 IIHF World Championship. It is home to the European Union’s office of European Regulators for Electronic Communications (BEREC). In 2017, it was named the European Region of Gastronomy.

In 2016, Riga received over 1.4 million visitors. The city is served by Riga International Airport, the largest and busiest airport in the Baltic states. Riga is a member of Eurocities, the Union of the Baltic Cities (UBC) and Union of Capitals of the European Union (UCEU).

The financial stability of Riga has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Riga

 

Renting out your Riga buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Riga are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Riga and be prepared to change your initial outlook.
  • Thoroughly research the Riga location with a special emphasis on fringe areas outside the main Riga metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Riga.
  • Ensure that your target investment property in Riga appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Riga provides the secure knowledge that your money is working harder than it would in a local Riga bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Riga, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Riga property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Riga

Flipping property in Riga

 

Flipping property is when we advise clients to buy a Riga property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Riga market has a time to react to the renovation.

 

The Flipping Strategy in Riga

 

Investment property flipping in Riga is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Riga real estate investments are sometimes referred to by professionals as ‘distressed’ Riga real estate.

 

What is distressed Riga property:

 

  • Riga property in need of renovation
  • Riga real estate with a change of purpose and use
  • Oversold Riga property
  • Bank repossessions in Riga

Put simply, long term investors in Riga purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Riga investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Riga property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Riga use a minimum profit value of 22% when looking at potential Riga projects.

 

The reason for this is because there are lots that can go wrong in Riga property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Riga

 

Property Secured Investments is a Private Equity fund that invests in Riga and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Riga

For luxury property investors hoping to add a superb property in Riga to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Riga, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Riga should be entrusted to only the highest-quality agency.

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