Merko Group

According to data from Colliers, the number of reservations in new development projects decreased by about 40% in Q3 2023. The cost of a mortgage has increased despite prices stabilising, thereby making new apartment purchases less affordable, particularly for economy class buyers, which has led to a noticeable change in the priorities for renting. When compared with last year, an 88% household income increase is required to purchase a two-room apartment with a mortgage. While the development of new projects continues, they are being developed in smaller sizes, reflecting a cautious market. The immediate future points to liquidity problems, with a possible improvement in Q3/Q4 2024.

We have reached a huge milestone in 2023 and have finalised third stage of the Viesturdārzs project, which is the largest residential quarter in the prestigious Quiet Center of Riga. Over the last five years we have built more than 350 apartments, 14 commercial premises with a total area of almost 30,000 square metres and have sold around 80% of the project.

This has become our signature project in which we have successfully completed a lot of “firsts” for us: built our first smart apartment, rooftop terrace, graffiti wall and much more. And industry professionals are acknowledging it, as this has become the most awarded project in our history, receiving more than ten different industry awards, including five different awards for all three project stages in “Best Building of the Year in Latvia” for three years in a row, as well as a “Sustainability in architecture” award. We are more than pleased with the work completed and the development of the Viesturdārzs quarter. Additionally, we have fully furnished seven show apartments across three projects.

By acknowledging the need for creativity in project solutions, the urban environment and customers stand to benefit the most in the current market situation.

By acknowledging the need for creativity in project solutions, the urban environment and customers stand to benefit the most in the current market situation. By the end of Q1 2024, we will have approved project designs for close to 1,500 building rights (permits). In addition to perhaps building our first rental home for an investment fund, we would like to begin work on an ambitious project in Lucavsala, depending on the condition of the market.