Citadele Bank (Latvia)

Young People and Investors Choose Compact Homes in Attractive Locations

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Rebuilding industrial buildings into modern, compact loft-style homes, the Promenāde project on Mūkusalas Street on the banks of the river Daugava has been created with the help of Citadele financing.

Continuing the development of the Mūkusalas Street territory, 106 move-in-ready apartments have been created as part of the Promenāde project after turning two industrial buildings into a residential complex.

Buyers prioritising this kind of home - compact, unusual and well-located - are those currently most active in the real estate market: young professionals or millennials, as well as investors buying homes as rental properties.

Representative of the project developer Baltlains, Laima Paševica-Eglīte: “We are seeing that the real estate market is largely being set by millennials, currently one of the largest economically active sections of society. This generation prioritises a fashionable life in the centre of the city with high potential for development. They are more interested in relatively small homes. We are seeing just as much interest in buying an apartment from investors who buy homes to rent out - there is a high demand for these in the rental market.”

Citadele Bank Board Member Vladislavs Mironovs: “A large proportion of mortgages issued to millennials by Citadele are with a state guarantee, because the purchase of homes by young professionals up to age 35 is being stimulated by a state support programme which significantly reduces the amount needed as a mortgage deposit to around 5% of the total transaction sum. A bank loan and state support or guarantee is not a gift, so young professionals evaluate their choice carefully - they choose an apartment with potential.”

The first building of the Promenāde project has 41 unique one-, two- and three-floor loft-style apartments ranging from 31 to 115m2, and they are located over four floors. The layout and interior of each apartment is different. 70% of the available apartments have already been sold.

The second building of the Promenāde project has also been similarly renovated, with 65 apartments ranging from 29 to 171m2 constructed over six floors. The building contains standard apartment layouts, but the interiors use different finishes to make them distinct. These apartments are already for sale.

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