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Prices Falling By 65% In Riga And 52% In Tallinn

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particularly for the ''off its face' Dubai thread :rolleyes: heh, this thing is literary 'going global man' B)

Apartment prices have fallen 20-30% in Riga during the past year. However, real property specialists warn that the tendency will be continued.

To reach an optimal verge, the prices must go further down at least by 30%. After cancellation of the easy housing loans, the apartment prices have significantly reduced in the Latvian capital.

Latvia's biggest real estate company Balsts estimates that the apartment prices have fallen by over 20% during a year. Another real estate company said the fall went over 25%, kauppalehti.fi reports.

Head of the real property consulting firm Fidius, Ruusa Hentila said based on her own calculations that the real property prices have already fallen some 25-30% in Riga's prestigious districts like Old Riga and a calm settlement nearby.

http://www.housepricecrash.co.uk/forum/ind...showtopic=81577

Just back from holiday in Estonia, a country which I love and have been keeping going back to since I first where there about 8 years ago.

Over the last few visits I've seen exactly the same happen there are here: high rise tiny flats with poor build quality being thrown up and sold for silly money, mainly to British wannabee BTLers ( a lot of the adverts were in English only).

I remember one program (I only watched it because it was about Estonia, but I think it was called something like "A Property in The Sun") where one of the self confessed expert was getting ratty with a couple from London that didn't take her advice to buy a small flat in a provincial city that cost about 24 times a typical Estonian wage.

My Estonian isn't good, but I can make out enough of an article in the newpaper to see that it is saying that the price of new build flats in Tallinn city centre (which would be the most desirable ones) has fallen by 52% over the last year.

http://www.housepricecrash.co.uk/forum/ind...showtopic=81673

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Over the last few visits I've seen exactly the same happen there are here: high rise tiny flats with poor build quality being thrown up and sold for silly money, mainly to British wannabee BTLers ( a lot of the adverts were in English only).

Ouch!

It would be interesting to know whether these BTLers borrowed, by-and-large, from local banks or from UK ones. i.e. who is going to feel the pain of the coming defaults?

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Just to let you know that I tried to post a topic yesterday which stated that in May 2008 Latvia broke the all time European record for a monthly house price crash. Down 17.15% in one month.

Source: www.tvnet.lv - You may want to use Alta Vista to get an English translation...

It is the biggest monthly HOUSE PRICE CRASH on record...

Shame the mods didn't notice my excellent article :unsure:

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Shame the mods didn't notice my excellent article :unsure:

Have you posted a request to be upgraded to the member's group? There's a specific forum for it.

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Ouch!

It would be interesting to know whether these BTLers borrowed, by-and-large, from local banks or from UK ones. i.e. who is going to feel the pain of the coming defaults?

mixture of both I guess, typical fly to letter mewed UK house for the deposit, then took over lump of cash and signed up for non status local mortgage in developers office, mugged. Still, at least the legacy could/should be a load of nearly new empty flats/houses available for locals at knock down prices...we'll pay for it in the UK through socialised debt, but heh, we're all Europeans right? :unsure:

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Just to let you know that I tried to post a topic yesterday which stated that in May 2008 Latvia broke the all time European record for a monthly house price crash. Down 17.15% in one month.

Source: www.tvnet.lv - You may want to use Alta Vista to get an English translation...

It is the biggest monthly HOUSE PRICE CRASH on record...

Shame the mods didn't notice my excellent article :unsure:

well you can post it up here now if you can't start a thread :)

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Thanks for the advice, I will check it out later.

But for now, I have nosed around and found the link, it is here:

http://rus.tvnet.lv/news/news/latvia/econo...e.php?id=247065

You may want to translate it from Russian to English using http://babelfish.yahoo.com/?fr=avbbf-us

And sorry, its late in Switzerland, the actual drop was 27.15% in May 2008!!!!! :blink:

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Just to let you know that I tried to post a topic yesterday which stated that...

Shame the mods didn't notice my excellent article :unsure:

Go to "The upgrade request sub-forum"...

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So how on earth they expect people to pay back on normal wages.

1000 euro per square meter is way too high, you still need to feed yourself and you family,

what about afordability, please can anyone calculate the mortgage multipliers in Latvia :)

2008 AVERAGE MONTHLY WAGES AND SALARIES BY REGION OF LATVIA BY MONTH - LVL

I- 446 II- 449 III- 465

1 Euro = 0.70 Latvian Lati

Euro 325.5 per month

http://www.klima.cz/Latvia.htm

The mortgage payment can’t exceed 40% of your monthly income and Latvian banks are ready to give a loan up to 90% of the property value

Economic factors

Apartments in Riga, Latvia’s capital, rose on average by 20-30% in 2003, and 30% in 2004.

High demand for property is fuelled by high GDP growth (6% average annual growth over the last four years).

Interest rates have decreased significantly and are the lowest ever, starting at 3.8%

Liquidity is fuelled by growing mortgage loans. Outstanding mortgage loans in Latvia total only 4.6% of annual GDP. Compared to the EU average of 48% of GDP, mortgage lending has a long way to grow. It is estimated that over 650 million EUR of increased lending will come to the Latvian housing market over the next four years.

http://www.globalpropertyguide.com/Europe/...a/Price-History

Among the measures implemented by the Latvian government to cool the housing market were:

a reduction in credit availability. Buyers must now fund at least 10% of the amount loaned;

an increase in Land Registry and mortgage registration fees;

buyers must secure certification of their legal income from the State Revenue Center; and

additional taxes on speculative real estate transactions.

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http://www.propertywisebulgaria.com/articl...d_2901/catid_30

There are some countries, such as Bulgaria and Latvia, which were not included in the research quoted by Forbes. This is simply because the RICS has not been able to get their government statistical departments or housing associations to release the relevant information. However, although these housing markets have seen phenomenal growth, even they are on the wane, the magazine ssaid.

"There was a peak in growth in the Baltic markets, but it's over," says Gareth Williams, Knight Frank senior research analyst. "You won't see the 40 per cent to 50 per cent growth rates again in those countries." The peak for Latvia was in the beginning of 2007

Latvia's mortgage market (the total value of mortgage loans outstanding) rose by 86.5 per cent in 2006, according to research by the European Mortgage Federation. In Bulgaria, it grew by 73.5 per cent for the same period, and in Estonia by 63.4 per cent. But even that was a fall from the 97.2 per cent, registered in Latvia and Bulgaria in 2005.

Edited by alabala

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So how on earth they expect people to pay back on normal wages.

1000 euro per square meter is way too high, you still need to feed yourself and you family,

what about afordability, please can anyone calculate mortgage multipliers in Latvia :)

Mortgage Multipliers in Latvia :lol::lol::lol::lol::lol:

Welcome to the EU :ph34r:

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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