“Dienas Bizness” publishing house is holding a conference called “Developments in the Market for New Real Estate” in collaboration with CBRE Baltics and experts of real estate market 29th April, 2021.
The real estate market is facing major changes, affected by a variety of factors, such as the limitations and consequences caused by the pandemic, technological development, the availability of funding, the demographic aspect, the overall economic situation in the country, and political decisions. Current ongoing activities are, therefore, fluid and subject to rapid change.
The Covid-19 crisis has dramatically accelerated changes that had already commenced in certain real estate market segments. Physical restrictions have also negatively affected shopping centres and hotels, polarizing public debate on the proportionality of restrictions and state aid and changing the current business model in the industry. At the same time, rental demand for private houses and small apartments has increased. The impact of the Covid crisis on the real estate market is clearly visible in land registry data on apartment sales: the number of property purchase deals fell by half in the 2nd quarter of 2020. However, numbers returned to their previous level in the third quarter and at the end of the year. Currently, there is high demand for economy class apartments in the market. More and more people are favouring new projects in the first home market, those available from 2017–2020. There is also a lot of activity from institutional investors, willing to invest in rental houses, which then produce a stable cash flow.
It is very difficult to predict the development of future events, but the crisis and the changes outlined are creating new opportunities to increase competitiveness on a larger scale. What developments will 2021 and the new decade bring to the market for new real estate? How will they affect the demand and supply of real estate and what is the current market situation? These are the topics of discussion for the conference.
Dienas Bizness will bring industry leaders together at the conference to talk about the current situation in the industry, perspectives for 2021 and the challenges of the new decade in the market for new real estate.