In particular, real estate prices in Latvia fell by 38.9% compared to the same period of 2007. In the first quarter of 2006, price growth amounted to 69%.
The Global Property Guide study covers 34 countries. Of these, 13 countries have seen a rise in real estate prices, while 21 countries have seen a decline amid the mortgage crisis.
A major decline is also noted in the USA - 18.07%, Ireland - 13.24%, Lithuania - 7.5%, Estonia - 6.5%, and Ukraine - 6.36%.
According to Latvian sources, real estate prices fell by only 21%. From 2004 to 2007, Latvia experienced a rapid rise in real estate prices, as a result of which prices in some segments increased by 250-300%. This price growth stimulated inflation, and to stop it, the republic's government introduced measures to limit mortgage lending. This led to negative price growth and a decline in the purchasing power of Latvia's residents.