Business Proposal for Land Plot in Sigulda, Vidzemes Soseja 59

Executive Summary

This proposal outlines the opportunity to acquire a strategically located land plot at Vidzemes Soseja 59, Sigulda. The property offers significant potential for both residential and commercial development, with the flexibility to meet various market demands. The land has an approved and ready sketch design for a residential building with 22 apartments, making it ideal for a residential project, while its prime location adjacent to the highway also opens possibilities for commercial use as well.

The land is available for sale, and the owner is motivated to proceed with a transaction. This proposal highlights the key features, potential uses, and benefits of the land, offering a compelling investment opportunity for developers and investors in both the residential and commercial sectors.

Property Overview

• Location: Vidzemes Soseja 59, Sigulda, Latvia
• Plot size: 3349 square meters
• Zoning: The land is currently zoned for both residential and commercial use.
• Proximity: The land is strategically located next to the Vidzemes Soseja (Highway A2), providing excellent connectivity to Sigulda and nearby regions. It is approximately 1km from the city center and offers easy access to local amenities, transportation links, and services.
• Access: Direct access from the highway and close to other transportation routes, providing high visibility and traffic potential for commercial ventures.
• Topography: Flat and ready for development with no significant obstacles.

Development Potential

Residential Development

The land comes with a ready sketch design for a residential building that consists of 22 apartments. This design offers the following advantages:

• Pre-Approved Design: The design has already been prepared and is ready for approval for construction. This significantly reduces development time and the need for additional design or architectural work.
• Modern Living Spaces: The planned building will feature modern, high-quality A class apartments, catering to the growing demand for residential housing in Sigulda. The design can be adapted for either luxury apartments or more affordable living spaces, depending on market needs.
• Attractive Location: Sigulda is a popular destination known for its natural beauty, historical significance, and recreational offerings, which makes it an appealing location for residential development. The area attracts tourists, professionals, and families seeking a quieter, more scenic lifestyle while still having access to urban conveniences.

Commercial Development

Given the land's location next to the Vidzemes Soseja, it is also well-suited for commercial use, such as:

• Retail Spaces: The visibility from the highway and high traffic volume provide an excellent opportunity for retail businesses, such as convenience stores, gas stations, showrooms, or fast-food outlets.
• Office Buildings or Warehouses: With easy access to transport links, the land could be used to develop office space or warehouse for local businesses or regional corporate offices.
• Mixed-Use Development: A combination of residential and commercial units could be considered, offering both living spaces and retail or office opportunities within the same development.

Market Analysis

Residential Market in Sigulda

Sigulda is a desirable location for both local residents and those seeking second homes or weekend retreats. The town is famous for its picturesque landscapes, outdoor activities (such as skiing, hiking, and sightseeing), and proximity to Riga, Latvia's capital (approx. 50 km away). Sigulda's residential market is characterized by:

• Growing Demand: There is an increasing demand for residential properties in Sigulda due to its appeal as a peaceful yet well-connected location.
• Affluent Buyers: Many residents in the area are professionals, retirees, and families looking for a higher quality of life outside the hustle of larger cities.
• Tourism Influence: Sigulda's status as a tourist destination boosts the demand for both short-term rental properties and long-term residential homes.
• Shortage of housing options: For a quite some time there is a lack of offers and limited residential housing developments, which increases the demand for new residential spaces.

Commercial Market in Sigulda

The commercial potential of the land is also significant, given the following:

• High Traffic Exposure: Its location near the highway offers visibility to thousands of daily commuters and visitors, ideal for businesses that rely on traffic.
• Proximity to Major Urban Centers: Sigulda’s location, close to both Riga and Valmiera, provides a strategic advantage for businesses targeting both local and regional markets.

Financial Overview

Purchase Price

The land is available for sale at 950’000 EUR. The asking price reflects the land's location, development potential, and approved design, with project making it a competitive offering in the Sigulda market.

Potential Revenue Streams

1. Residential Development:
   • Potential rental income from the 22 apartments.
   • Sale of the completed apartments, with market rates in Sigulda for similar residential units ranging starting from 2525EUR per m² *.
2. Commercial Development:
   • Potential rental income from retail or office spaces, with rents in Sigulda estimated at 10 EUR per m² *.
   • Potential for high turnover from businesses targeting local and transient customers due to the land's prime highway location.

Why Invest?

• Prime Location: The land is located in a highly visible and accessible area next to a major highway, ensuring excellent traffic flow for both residential and commercial uses.
• Ready-to-Use Design: With an approved residential building design for 22 apartments, the project can proceed with minimal delays and development time.
• Dual Use Potential: The zoning of the land allows for both residential and commercial development, providing flexibility for the investor to adapt the project to market needs.
• Growing Market: Sigulda's appeal as a residential and tourist destination, combined with the increasing demand for residential spaces, makes this an attractive investment opportunity.

Conclusion

The land at Vidzemes Soseja 59, Sigulda presents a highly attractive development opportunity for both residential and commercial projects. With its strategic location, the potential for a high return on investment, and the availability of a ready design for a residential building, this land offers a flexible and profitable investment for developers looking to capitalize on Sigulda’s growth.

We welcome the opportunity to discuss this proposal further and explore how we can move forward with the purchase of this exceptional land plot.

*Prices are approximate and correct at the creation of this proposal (2024).

For further details or to arrange a site visit, please contact us:

Andris Rubins, Dr.hab. med.

Dr. Honoris Causa of Latvian Academy of Sciences

Professor, University of Latvia, Department of Dermatovenerology

President of Latvian Association of Dermatovenerologists (LDVA)

President of Baltic Association of Dermatovenerologists(BADV)

Former Parliamentarian of Latvia

Kr. Valdemara 76-75, Riga, LV-1013, Latvia

Mob.ph.:   + 371 29481725

E-mail: arubins@apollo.lv