23-09-2025
Like any investment instrument, real estate has its own unique characteristics. On the one hand, properties in prime locations are liquid and can generate profits from resale or rental. On the other hand, purchasing an apartment requires significant start-up capital, and maintaining the property entails additional costs and risks. Mercury Group Director Irina Alazova, with 20 years of experience investing in real estate (including internationally), explains all the nuances.
Benefits of Investing in Real Estate
-
Low risks. Real estate transactions are strictly regulated by law, making them stable and transparent.
-
Liquidity. Real estate in major cities is in steady demand. If necessary, it can be quickly sold at market price.
-
Capital protection from inflation. Due to the rising value of properties, the investor's capital increases annually.
-
Stable demand for rental housing. Owners of properties in sought-after locations receive a stable monthly rental income.
-
Opportunity to obtain a residence permit through real estate investment. For example, Latvia has the lowest entry threshold in all of Europe – a residence permit is issued for a property purchase of at least €250,000. And the premium Riga Waterfront project is the only one in Latvia where you can obtain a residence permit based on an apartment reservation agreement, even before receiving the keys, by investing just 20% of the property's value. Read more here.
The nuances of real estate investments
-
Difficulty choosing a suitable property. The real estate market offers a huge selection of properties, which can make finding the optimal investment challenging. Careful market analysis, review of various projects, and assessment of growth prospects and potential rental income are essential.
-
Maintenance and upkeep costs. If a property remains unoccupied for a long time, owning a property is associated with ongoing expenses, including property taxes, utilities, insurance, repairs, and management.
-
Potential force majeure. Renting a property is associated with risks such as vacancy, damage to property by tenants, and payment delays. These risks can significantly reduce the return on investment. It is essential to consider insurance and effective property management mechanisms to minimize potential losses. It is also important to consider potential unexpected expenses associated with the need for urgent repairs or equipment replacement.
Investing in real estate is a complex process that requires careful analysis and attention to every detail. Success in this field depends not only on choosing the right property but also on a professional approach to all stages of the investment cycle, from due diligence to property management and maintenance.
Mercury Group has been operating in the Latvian real estate market for over 24 years. Only we have access to all luxury residential and commercial properties in Latvia, including a closed database of properties for rent and sale.
We will personally guide you through every stage of the transaction, help you choose the ideal home, conduct the purchase and sale transaction, or draw up a lease agreement.
We have created the international platform
www.mercuryestate.com to easily find only the best developers and transaction partners anywhere in the world.
Join Mercury Estate and trust your choice to those who care about your success!
