Real estate market and residence permits in Latvia
One of the incentives for developing construction and real estate market are residence permits, which can be obtained by foreign citizens by purchasing real estate in Latvia. When foreigners buy real estate, the demand for new building is increased, as well as the need to renew old buildings. If government will formulate the national development vision, new project will be realized, new roads and bridges will be built and we will see the progress in construction sphere.
Real estate market, and especially apartment market stepped up in Ventspils. More people were attracted by tourism business and started to rent their real estates for foreigners.
Business is aimed for attracting foreign tourists. Ventspils is city, where modern port, innovative plants and beautiful beach are peacefully coexisting, which is approved by Blue banner since 1999. Therefore tourism is really important for the economy of Ventspils. Lithuanians have noticed all the benefits of tourism sphere in Ventspils, therefore they buy and rent apartments there.
The interest of benefiting from tourism also has negative effect, because it becomes harder for local people to find apartments. On the other hand, foreigners that have bought apartments in Ventspils but do not live there have broad opportunities to rent them, thus ensuring management and maintenance of their property. Most active foreign participants of real estate market are foreigners from Lithuania and Russia.