2. Business environment

Industrial infrastructure

There are numerous empty factory buildings from the Soviet era owned by local government as well as private persons. These buildings are fit for reconstruction as manufacturing plants for various kinds of businesses. Usually these industrial areas contain old factory buildings and warehouses, which require investment, but on the other hand, the areas are usually well equipped with basic infrastructure (electricity, gas, water and roads).

Transport and communications infrastructure

One of the main advantages of the region is a balanced and integral transport infrastructure. Currently this includes roads and railroads, but there is potential to develop air travel routes in the future.

Latgale is on the crossroads of three major roads and railroad lines of national and international importance:

Railroad:

• Moscow – Zilupe – Rezekne – Krustpils – Jelgava - Ventspils;
• Vitebsk – Indra – Daugavpils – Krustpils – Riga;
• St. Petersburg – Karsava – Rezekne – Daugavpils – Eglaine – Klaipeda/Kurcums – Vilnius.

Railroads run parallel to the three main roads that support Daugavpils and Rezekne as important junctions.

Land

Land prices in Latgale are some of the lowest in the country, but prices have been consistently rising.

The average price of land varies across the region from 820 EUR/1ha to 1,200 EUR/1ha. The average price for the region in 2014 was around 1,000 EUR/1ha.

Commercial property

The supply of commercial property is satisfactory. There are numerous opportunities to lease commercial properties (offices, factory spaces) in the largest cities of Rezekne and Daugavpils. There is a growth potential for office leases. Factory space can be bought or leased.

Residential real estate

Real estate market is very active in the largest cities of the region. Apartment prices are determined by the location, condition of the apartment and the condition of the apartment building.