This year, real estate prices are likely to continue rising, Andris Boze, a board member of housing developer and construction company YIT Latvija, told LETA.
He noted that housing prices in Latvia are still 30 – 40 percent lower than in Lithuania or Estonia and that, if the economic environment remains stable, prices can be expected to gradually approach levels seen elsewhere in the Baltics. According to Boze, this will not be a sudden leap but a predictable development that corresponds to the income level of the economically active population.
One of the key challenges Boze highlighted is construction costs and planning bureaucracy. Lengthy and complex approval procedures continue to hinder both large and medium-sized projects, increase development costs, and discourage investors from entering the Latvian market. To develop not only individual projects but also an environment where people want to live, a high-quality dialogue between the industry, the state, and local authorities is needed, Boze said.
Given that the real estate sector managed to emerge from the stagnation of previous years in 2024, Boze is generally optimistic about 2026. YIT Latvija’s main goals for 2026 are to develop projects with high added value, strengthen its position in the regions, and continue advocating for improvements in the sector, including participation in the future development of Riga’s neighborhoods.
As reported, YIT Latvija’s turnover in 2024 reached EUR 35.246 million, 2.4 times more than in 2023, while the company’s profit increased by 47 percent to EUR 2.83 million, according to Firmas.lv.
YIT Latvija was registered in 1998 and has a share capital of EUR 47,429,278. The company is owned by the Finnish group YIT Housing.
YIT operates in eight countries – Latvia, Lithuania, Estonia, Finland, the Czech Republic, Slovakia, Sweden, and Poland. The group’s turnover in 2024 reached EUR 1.8 billion. YIT Corporation shares are listed on the Nasdaq Helsinki Stock Exchange.
Source: BNS
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