Sometimes, if you are lucky, you won’t need to travel to far-off lands to find great investment opportunities. A high-yielding project could literally be waiting for you just around the corner. That is precisely what happened to me because I live in Riga – the capital city of Latvia, one of Europe’s highest-ranking tourism destinations, full of UNESCO marvels, good restaurants and people, wanting more of that. A real estate investor’s dream, so to speak.
Street food culture and various artisan markets are very popular in Baltic States and and especially in Latvia. These events succeed in attracting both tourists and locals. Every such festival is usually overcrowded and generates a lot of interest.
Entertainment that is based around locally-made good quality food and drink is considered sacred behind what remains of the city walls of old Riga and is definitively Latvian.
Is there any space for improvement?
So why come here and invest in an already well-covered, possibly oversaturated market? Well, the truth is – it is anything but oversaturated.
Grab something to eat at the awesome Street Food Festival and take stroll through the streets of the outer side of the city center.
In reality, those artisan market/street food culture activities I spoke about, are scattered throughout the city center, leaving many small, picturesque areas of Riga open and ready for great ideas.
Many of those activities are also seasonal, meaning that sometimes, outside what is considered to be the tourist season, not that much is happening.
Some areas have already been revitalized by small business owners who’ve opened up craft beer bars, restaurants and various types of venues but there is still a lot of space for improvement and if the current tourism trends are any indication, this is worth looking into.
An all-year-round street market
So… that area just around the corner I spoke about in the beginning is a land plot with a total area of 815 m2. It is the corner of Bruninieku and Kr.Barona Street, surrounded by historical buildings and well-developed infrastructure.
Currently it belongs to a Latvian company called SIA “Zelta Jumts” which is a project company with an aim to build and operate a modern street market and the idea caught my eye because it seems that the groundwork has already been laid – the company has already obtained the necessary construction permit to build a number of 1-2 story wood pavilions with total useful area of 300 m2.
The construction technology that is going to be used for the project is prefabricated modules.
The net rental yield is ~25 EUR per m2 per month. Valuation of the land plot without constructions is 870,000 EUR – a serious argument, if you are worried about investing safely and with minimal risk.
The developers of this project intend to turn the area at the corner of Bruninieku and Kr. Barona street into a modern street market that operates throughout the year.
The visitors will be treated to a wide range of local foods of biological and natural origin as well as foreign tastes and aromas coming from Italian, Spanish or Eastern-themed shops – all under one roof, come rain or shine. It will also serve as a venue for various artists, performers and designers who will add sound, image and harmony to this currently abandoned lot.
All this in 11 rentable store spaces and an open-air park at the center of this market that will host small merchants and various concerts, performances during summer, making this into a place where you can experience the unique vibe of Riga all year round.
Will it be worth it?
The most pessimistic scenario predicts that this idea will start generating revenue after 3,5 years. The more optimistic calculations suggest that it will happen after only year and a half.
The due diligence has shown that this is a high-yielding project with big potential. It is also worth mentioning that SIA “Zelta Jumts” is a company with impeccable credit history and its leaders have successful experience in developing real estate projects on an international level.
The chosen crowdinvesting platform Envestio which is based in the neighboring country Estonia, is one of the leading companies in the so called industry of new finance and a supporting member of European Crowdfunding Network (ECN).
All this suggests an easy, low-risk, high-potential investment opportunity that will bring profit.
It is true that in recent years Riga has garnered more and more praise as a tourist destination but any local developer will testify – the real potential of this grand old city still remains untapped.
There is this old local saying that “Riga will never be finished”, which rings true, it seems, as each year the city finds more and more travelers at it’s gates. Choosing to participate in this project means planting your flag in the center of it.
Interested? Start here or sign up to become an investor!