There is currently a lot of activity in terms of building new apartment buildings in Rīga and Jūrmala – ones that are scheduled to be completed by the end of this year. There are many other projects in which locations have been identified, documents and sketches are being prepared, and building companies are being selected. This is confirmed by Ilze Mazurenko, who is a board member and co-owner of the luxury real estate market company Baltic Sotheby’s International Realty.
“During the past few months, we have provided consultations to investors and project developers fairly often in terms of more rational and convenient planning of residential facilities, as well as aspects such as material and design choices, technical and energy solutions,” says Mazurenko. “We often have to analyse and describe the market situation and discuss the cost of new products in relation to end buyers, as well as factors which can raise or lower the value of new buildings and flats therein.”
New buildings are being erected in the historical centre of Rīga, in the so-called “quiet centre,” on Ķīpsala Island, and a bit further away from the centre in the so-called business segment. Both local and foreign investors are active in this process, and several banks are also involved in the construction of new buildings.
An analysis of processes in the exclusive real estate segment shows that the historical centre of the capital city is gradually being improved with the help of investments. Outstanding masterpieces of architecture are being renovated and fully restored. New buildings are being erected on empty land or land that has been cleared of former and collapsing buildings. The modern approach to the architecture of such buildings is successfully merging into the overall architectural landscape, says Mazurenko. Local specialists and foreign designers are involved in interior design procedures. Thus, for instance, Italian designers have been involved in the interior design of an historical building at Elizabetes Street 4.
The segment of luxury residences involves essential factors such as the location of the building, the layout of the flat, finishing materials, ceiling heights, the size and use of common-use rooms, car parking facilities, 24/7 guard services, as well as high-quality heating and ventilation technologies. If these parameters satisfy specific standards, then buyers of such flats must count on a cost of between EUR 3,000 and 5,000 per square metre, says Mazurenko.
The expert says that different clients come with different desires. Many buyers prefer club-type buildings with no more than 12-16 flats. Such buildings are already on offer in the market. Buyers also differ in terms of the level of finishing in the flat. Some prefer to buy a fully finished flat, while others are offered design choices and can adjust the layout of the flat, she explains.
The construction industry is also active in Jūrmala. Several new buildings will be finished this summer, while others will be ready during the 2015 season. “There is not much activity in the building of private homes, however, because land is mostly used for new apartment buildings,” says the Baltic Sotheby’s International Realty board member. “There are some cases in which particularly valuable homes are being carefully renovated. When it comes to demand, a new trend is that people are increasingly looking for peace and quiet in terms of housing that is further away from leisure and entertainment locations. This also involves a lower price, and that is why new buildings are being erected further away from the sea and closer to the Lielupe River.”
New buildings are typically modern in style, with large windows that admit as much sunlight as possible. Most of these buildings have three or four stories, which is in line with building regulations in Jūrmala, says Mazurenko. The price ranges from EUR 2,000 and 6,000/m2, and of importance here are the aforementioned factors – location, materials, design, architecture and layouts. There are buildings at which the price is even higher – as much as EUR 10,000/m2, but these are more of an exception than a trend.