CORVIN: The new projects segment stagnates in Jūrmala
Changes in Immigration Law are felt the strongest in the new projects segment in Jūrmala. The Number of transactions is so low that for Jūrmala several years will be necessary to sell apartments in those new projects, which are in construction stage or are built recently.
In Jūrmala, since the beginning of this year there are 7 transactions per month in average involving new projects’ apartments, which purchase price exceeds 100000 EUR. There are almost no transactions with non-residents, namely, within price limits from 100000 till 250000EUR. But for those non-residents, which still choose to carry out apartments’ transactions, purchase sums do not exceed 250000 EUR.
In the new projects segment in Jūrmala new trends are being observed – growing interest concerning acquisition of the apartments is shown by local residents. Local customers are not ready to pay more than 2000-2500 EUR/m2. The apartment purchase transactions concluded this year are within price limits from 100000 EUR till 250000 and mainly, as it is mentioned, the purchasers are local residents. Purchase prices in transactions with the local customers fluctuate within the limits from EUR 100000 till EUR 160000. Mainly 2-3 rooms’ apartments are acquired. It should be admitted that developers are not ready yet to make so serious adjustment in prices to make apartments in the new apartment projects in Jūrmala more available to local residents, considering their ability to pay. It can be explained by high construction cost of the new projects in Jūrmala.
Meanwhile, despite of small number of transactions, activity of non-residents can be still felt, but these customers do not buy property lead by emotions or the first impulse anymore, but very carefully and by thorough assessment of all the available options. In summer season, slight increase in average transactions’ number is forecasted.