The beginning of spring is a traditional time to look for a holiday home or summer house by the sea. In previous years, too, you had to act quickly: good and relatively cheap offers were sold out. Has the energy crisis changed the situation on the summer rental market? What are people looking for and what is on offer? Has the cost of renting gone up?

Experts from real estate companies told "Delfi Business" about the impact of the pandemic and then the economic crisis on tenants habits.

If we look at the advertisement portals now, there are enough offers in popular summer rental places - Saulkrasti, Carnikava, Jurmala. And even the prices look attractive: a summer house in Majori - 600 euros, half a house in Dzintari - 350 euros, a four-room new building in Asari - 500 euros per month. But when one looks at the advertisement text, it becomes clear: such prices for summer houses are valid until May. Then they rise sharply: property owners for May, the summer months and September want 1500-1700 euros per month. And even larger amounts. The same situation is in Saulkrasti. In addition, offers are still much less than in Jurmala. Maybe it is not the season yet?

"The behaviour of those who traditionally rent holiday homes and cottages by the sea has not changed for several years in a row, influenced by the events of recent years. In other words, those who used to start looking or agreeing in February/March are still doing so," comments Ksenija Ievleva, Latio real estate market analyst.

However, there are also some tenants who postpone their decision until June. "For various reasons - sometimes rental decisions are made spontaneously, sometimes there is no certainty of the necessity, someone waits and does not wait for profitable and suitable offers in another country (often Cyprus, Spain), so they stay in Latvia or, on the opposite, come to Latvia from other countries. Definitely, as the season is getting closer, the choice of objects will be more limited," adds the expert. By the way, in recent years Lithuanians often holiday by our "sea", while Latvians, on the contrary, choose Klaipeda and Palanga, where prices are a little lower.

According to Ievleva, May and September are always a little cheaper in the advertisements because of the weather. In addition, they are usually chosen by those who are not constrained by holidays, work schedules and small budgets. "Most, of course, are looking only for summer because of the children's holidays," she says.

Prices biting.

Prices traditionally depend on the property segment. That is, the summer rental price of a premium-level flat in the active part of Jurmala can be 3,000 EUR per month or more. Luxury flats sometimes exceed 10,000 euros per month. A Soviet-built house in the outskirts of Jurmala, for example, can cost 1,500 euros, and a mansion from 3,500 euros per month.

It is common practice for owners to live in their home for nine months and then try to move out temporarily in the summer and rent the place out, thereby earning themselves either for the winter or for a credit. Real estate experts say that this year it is more relevant than ever. And it could affect property prices.

Definitely can say that against the background of the general rise in price of everything, rental prices could not have fallen much. Landlords usually cover part of their winter expenses with summer rental revenues, this practice will probably not change this year as well" - Ksenia Ievleva, Latio specialist.

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Jurmala - with and without Russian people

What is characteristic of recent years is that the behaviour of landlords has refocused more on local audiences. Already during the pandemic years, Jurmala lost popularity among Russians. Now, for obvious reasons, even those who would like to come will not be able to do it.

And so far it does not seem that prices in Jurmala have decreased due to the decrease of Russians. Firstly, as experts have noticed, locals have become more active, secondly, demand from citizens of other countries has slightly grown, thirdly, there are still some Russians and Belarusians with dual citizenship.

Those Russians who wanted to get rid of real estate in Latvia urgently have already mostly done so. "But it should be understood that not everyone is ready or intends to sell real estate in Latvia, because, firstly, it is mostly premium objects, and the overall demand for them in principle has declined, secondly, the sale also involves difficulties ( for example, bank transfers, etc.), and thirdly, the money from selling real estate is then somewhere to invest, and many simply have no idea where they could be profitably invested now, so they prefer to leave the property in ownership. Many start renting it out to cover expenses," says Ievleva.

Alexander Tsykunov, co-owner of VIP REAL, agrees with her. He says that during 20 years of his work in Jurmala real estate market, there has always been and still is interest in renting accommodation priced up to 5000 EUR per month, even from locals. "Three to five thousand euros per month is the price at which people will still be renting this year, and it is not frightening. When pandemic started and Russian people could not come to Latvia, we noticed that market sagged in expensive segment (10-30 thousand EUR per month of rent). And then those tenants, who were not ready to concede the price, simply did not rent the real estate. This year we already have a request for expensive real estate from Russians and Ukrainians. Russian-speaking people from Europe (Spain, Germany, Poland...) are also coming, but they are few," Tsykunov explains.

Prices in Jurmala adjust all the time depending on demand. Last year they were no lower than in the peak years, when Jurmala hosted the New Wave festival and KVN came. This year is different. The war and the energy crisis will affect the market. But how it will end up, I can't predict yet. There is an expectation that things will get even more expensive," Alexander Tsykunov, a real estate specialist at VIP REAL.

He notes that prices for long-term rentals in Jurmala have decreased. Especially in the segment affordable to local tenants - up to 1,500 EUR per month. "This has happened because the communal fees have gone up. As a result, rented accommodation, which used to cost 1500+ euros plus "communal services", today costs 850 euros. And it is realistic to rent it for that price," Tsykunov adds.

There may be problems with premium real estate in the summer. "We have a small country and there are as many clients as there are. Not many people can afford to pay 15,000 per rent. They will not cover the whole segment if Russian people does not come," he says.

By the way, he does not see a tendency for Russian people to try to get rid of local real estate. They live here, get residence permits, their children study in Latvian schools.

"I see that on the opposite, they are trying to get rid of assets there, in their home country. In addition, those Russian people who stay there but want to sell something here have difficulties," the expert concludes.

In general, real estate experts believe that it is too early to judge how big the demand for seasonal rentals from Russians and Belarusians coming for the summer will be this year, but obviously it will not be the same. It is known that many of them are already looking at other destinations for summer housing (very often Asian countries).