In 2017 prices increased because of significantly low level of apartment supply. This increase is mainly due to the low level of quality apartment supply. In September the properties on offer decreased in almost all major districts of Riga, Latvia – most significantly in Ilguciems (-11.2%).
The current market situation shows a shortage of standard type apartments offer in the price range from 35 000 – 60 000 EUR. One of the key factors that affects supply is the slow pace of new projects construction. The real estate market does not satisfy that category of customers who are waiting for new housing supply and do not want to live in standard-type apartments. This situation and the growing demand in the long term is likely to lead to rapid price increase of standard-type apartments.
“From the beginning of 2017 the average apartment prices increased by 6.2%. During the first three quarters the highest price increase was observed for apartments in Bolderaja (+ 11.4%), but the lowest price increase was observed in Teika (+ 3.4%). At present, the largest part of the market is still dominated by local consumers – this is a positive signal to a predictable long-term market development. An important factor which would contribute to growth is stability, politically and demographically, but at the moment this is not sufficiently developed,” comments the CEO of company BALSTS Aigars Zarins.
In September 2017 Riga standard type apartments price range has reached 765 EUR/m2. The highest apartment price remained in Teika, where the average price is at 895 EUR/m2 position, but the lowest price remained in Bolderaja – 540 EUR/m2. Riga standard apartments price drop has not been observed, while a minimal price increases from 0,06 – 1,02% were observed in most of the secondary market, new projects and in the center. BALSTS index increased by one point and reached 178 points.
Customers activity in the house market remained unchanged. Buyers are primarily interested in modern high-quality houses in areas with good infrastructure and orderly surroundings, but such properties at affordable prices are limited. Demand is typically for houses with an area of 200-250m2, with 1000 to 1200 sq.m. of land.
With regard to Riga office space, A class space is being offered for tenancy at 10 -15 euros per square meter, and in the most prestigious buildings up to 16-20 euros per month. Class B space is on offer at 5-10 euros per square meter per month, before service charges.
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