OREANDA-NEWS. April 23, 2015. At the beginning of 2015, uncertainty that governed the property market resulted in a sharp decline of activities. General tendencies of the market influenced the sales results of Pillar. In the first quarter of 2015, Pillar group concluded 88 purchase and sales deals that is twice less than in the corresponding period last year. The total amount of closed deals in Q1 2015 amounted to EUR 2.9 million.

As previously, most of the activities happened in the market of serial apartment blocks in which Pillar managed to close 68 purchase and sales deals — 37 apartments in Riga and 31 apartments outside Riga. In new projects, five deals were concluded: nine private houses, one land plot and one commercial object were sold.

Evaluating the results Chief Executive Officer of Pillar Ieva Valtere remarked: “Following a vigorous growth of the market in 2014, this year started in relatively negative moods in the property area. It has rational explanations: instability and geopolitical tensions in the world, limitations in the programme of obtaining a residence permit that were introduced by the government significantly reduced the interest of foreign clients in property in Latvia. Additionally the “hand keys back” principle, that was unsuccessfully implemented last year, forced many credit institutions to review repeatedly their mortgage programmes and as a result, the amount of available mortgage funds in the property market was reduced. Despite this general background, we are forecasting that in the second quarter of the year, optimism and growth will return to the market, as spring has always been the most active period of the year in the property market.”      

In Q1 2015, Pillar started to make reservations for apartments in the premium-class apartment block Miera Park House, at 57a Miera Street. For those who appreciate high-quality apartments, now 38 apartments of area size from 62 to 238 m2 at the price starting with 1700 EUR/m2 are available. A new-built Miera Park House was purchased at the beginning of 2013 for EUR 2.4 million. The amount of investments into reconstruction and finishing works has reached EUR 5.6 million. It is planned that the house will be completely commissioned in the second quarter of 2015.