Riga, Latvia, 2015-07-20 07:49 CEST (GLOBE NEWSWIRE) -- Following witnessed uncertainty in the real estate market in the first half of the year, in the second quarter positive and growing tendencies returned to the market. In the first six months, the Pillar group stroke deals for 180 properties that is half less than in the corresponding period of the last year when the sales results were the best in the history of the company.
The total amount of deals in the first six months reached EUR 7.7 million.
Local buyers still remain active in choosing uniform apartments. Within six months in this sector, Pillar closed 121 sales deals. Whereas, in the first half of the last year 218 uniform apartments were sold.
A significant growth was observed in the sector of private houses. Within this year, 34 private houses have been already sold that is three times more than in the first half of the last year. In new projects 13 deals were closed, seven land plots and one commercial object were sold as well.
Looking back at the first half, Pillar Chief Executive Officer Ieva Valtere emphasizes: “At the beginning of the year, stagnation ruled the real estate market, it was due to negative impact of new normative acts — changes in the residence permit programme, the launch of “the dropped-off keys” principle and others. However, as we forecasted, in the second quarter, the situation changed, positive tendencies returned to the market — gradually the demand for accommodation started to return due to attractive prices on properties and the decline of financing assets cost and new programmes of mortgage loans. On top of these changes, ALTUM, the state support programme of granting guarantees on mortgage loans for families with children, started to operate. ABLV Bank, AS, joined this programme, as a result the bank can grant mortgage loans for purchase and building of accommodation from Pillar under more beneficial conditions”.
It is worth noting, in the first half of the year, 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. The quality of this project has already been appreciated by many clients, as within one month, five apartments have been booked and three apartments have been sold.
A new-built Miera Park House was purchased at the beginning of 2013 for EUR 2.4 million. The amount of investments in reconstruction and finishing works has reached EUR 5.6 million. It is planned that the house will be completely commissioned in the nearest future.
In our portfolio of reconstruction properties, there are special and appreciated by our clients property projects, such as: Elizabetes Park House, Saules Rasa, Pine Breeze, Mārtiņa Nams 2, Liesmas Apartment House, Dārza Apartment House, Lielezeres Apartment House and others. The quality of our work is proved by the fact that most of the apartments have already been sold off. Read more about Pillar and its properties on the website: www.pillar.lv.
Pillar Holding Company, KS, established in 2008, is owned by the largest private bank in Latvia — ABLV Bank, AS, and it includes ABLV Group companies that operate in the field of real estate development, management, and trade. Pillar holds one of the largest real estate portfolios in Latvia, which comprises apartment blocks, apartments, private houses, land, and commercial properties. In total, Pillar supervises about 680 properties worth approximately EUR 59 million. So far, the company has invested the total of EUR 15 million in renovation of properties. Since 2013, Pillar has been the major sponsor of the Annual Award in Latvian Architecture organized by the Latvian Association of Architects.
Ilmārs Jargans
Head of Public Relations Department
ABLV Bank, AS
Tel.: +371 6777 5296
e-mail: ilmars.jargans@ablv.com