SIGNIFICANTLY LOW LEVEL OF APARTMENT SUPPLY "RAISES" PRICES UP
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 - most significantly in Ilguciems (-11.2%).
As we approach the new school season, in August the demand for rental apartments has increased by 24%. The biggest interest is about quality 2-3 bedroom renovated apartments, new projects apartments and 1-bedroom apartments in the center, but offers are very limited.
In July, prices for standard apartments averaged EUR 752 per sq. m. The highest apartment price remained in Teika, where the average price is at 887 EUR/m2 position, but the lowest price still remained in Bolderaja – 535 EUR/m2. Price increases across Riga have been between 0.11% and 2.13% within the secondary market. Just Mezaparks, Bolderaja, Riga centre, and new build apartments have not shown a rise. The BALSTS index in July increased by one point and reached 176 points.
THE NUMBER OF TRANSACTIONS GOES DOWN BUT PRICES GROW
In April, as in March,there was again an increase in real estate prices, ranging from 0.12% in Teika, to 0.71% for the faster growing Purvciems area. In the city centre, and for new projects, prices remain unchanged, month on month. The average price Riga-wide is now approaching €726 per sq. m. Although there are exceptions, there is now an almost equal average price level for Purvciems and Imanta, respectively €766 and €765 per sq. m As in the table above, the situation remains that the leading region is Teika, with an average price of€868. The lowest average price continues to be Bolderja - €494.Balsts index increased by 1 point - 173 points.
In March Riga standard type apartments are offered for an average of 723 EUR/m2. The highest apartment price remained in Teika, where the average price is at 867 EUR/m2 position, but the lowest price still remained in Bolderaja – 491 EUR/m2. In Riga standard type apartments price increases from 0.11 - 1.03% were observed in most of the secondary market, only in the center and new projects prices are steady. BALSTS index in March increased by one point and reached 172 points.
FOR 25 YEARS NOW, WE HAVE BEEN SAVOURING THAT WARM FEELING, WHEN THE CONTRACT IS SIGNED, AND YOU SAY TO US „THANK YOU”. SIMPLE, BUT SINCERE. AT SUCH MOMENTS WE UNDERSTAND THAT OUR TIME AND EFFORT HAS BEEEN WORTHWHILE. THIS IS WHAT SUPPORTS US, AND EVERYTHING WE DO.
THE REAL ESTATE MARKET MAINTAINS STABILITY AT ITS FAMILIAR LEVEL
In February prices for Riga standard type apartments remained stable and only in some suburbs of Riga it has there been a minimal increase of 0.12%. The highest apartment price remained in Teika, where the average price is at 866 EUR/m2 position, but the lowest price still remained in Bolderaja – 486 EUR/m2. The highest increase of price was observed in Imanta for 0.53%. BALSTS index in February increased by one point and reached 171 points.
NUMBER OF TRANSACTIONS IN RIGA ARE „MELTING” TOGETHER WITH THE SNOW
All the beginning of this year Riga standard type apartments price range has minimally increased. The highest apartment price remained in Teika, where the average price is at 868 EUR/m2 position, but the lowest price still remained in Bolderaja – 486 EUR/m2. BALSTS index increased by one point and reached 170 points.
In 2016 in the real estate market were observed permanent changes - all these changes were slight, but moderately rising local demand can stimulate the market in a stable and sustainable development direction.
Despite the unstable economical and political situation in the country, the real estate market in November is still active - the number of transactions continues to show steady growth as well as the average apartment price continuing gradually upward. In this month, the average standard apartment price per square meter increased by 0.7%.
The Riga real estate market in the middle of autumn could be described as vibrant. Average apartment prices continue a gradual increase, while the number of apartments offered for sale has been declining for the sixth month. Potential buyers are showing a lot of interest, but the decisions are made slowly and carefully.
REAL ESTATE MARKET SITUATION IN LONG TERM IS LIKELY TO LEAD TO RAPID PRICE INCREASE
Average apartment prices in 2016 first three quarters increased by 5.3%. In 2016 prices increased because of significantly low level of apartment supply, which continues to decline. In September, the properties on offer decreased in almost all major districts of Riga. Most significantly supply decreased in Pļavnieki (-14.2%).
As we approach the new school season, in August the demand for rental apartments has increased by 22%. The biggest interest is about quality 2-3 bedroom renovated apartments, new projects apartments and 1-bedroom apartments in the center, but high quality offers are very limited.
The market for standard apartments in Riga is unimpressive. Offers in July 2016 compared to previous month statistics are 10,3% lower. But compared to July 2015, real estate offers are even 27% lower, which is the lowest point in the last 3 years.
In June, in the Riga real estate market continued to grow at a steady rate, and has been continuing to go up now for several months. The number of transactions in June, compared to June 2015 is 13% higher. An average apartment price increase from the beginning of the year increased by 3.5%, which is 5 times higher than at the same period last year. We expect that the standard-type apartment price growth this year will be the highest in the last 5 years. 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. Growth can be also contributed by a stable economic, political and demographical situation,” comments the CEO of company BALSTS Aigars Zarins.
Activity about the new project apartment segment, which is orientated to the local buyer, has slightly increased. This increase is based on more accessible lending from banks and as well as the fact that a new apartment purchase mortgage loan monthly fee is less than apartment rent. Potential buyers are mostly from the age of 30 years, with a stable income and they are looking for two-bedroom or three-bedroom apartments. More than a half of the customers who buy apartments in new projects use bank finance.
RIGA REAL ESTATE MARKET LEFT BEHIND BY OUR NEIGHBORS
After a period of crisis in the Baltic capitals there were different types of growth rates, but the real estate market in Riga has been left behind by our neighbors. The market in Tallinn after the crisis has managed to recover within a few years - at the moment prices compared to their highest point is - 9%. Market development in Vilnius is a little bit slower - at the moment the price change from the highest point is - 32.50%. But in Riga average price compared to the highest point is even 58% lower. Although Riga real estate transactions since the beginning of 2016 increased by 23%, against the Tallinn and Vilnius it shows only minimal signs of development and does not let us look to the future with confidence, " comments the CEO of company BALSTS Aigars Zarins.
REAL ESTATE TRANSACTIONS SHOW A STEADY INCREASE FOR THE THIRD MONTH
In March Riga standard type apartments are offered for an average of 676 EUR/m2. The highest apartment price remained in Teika, where the average price is at 812 EUR/m2 position, but the lowest price remained in Bolderaja – 467 EUR/m2. In Riga A minimal price decrease was observed only in Bolderaja – 0.21%. But a minimal price increases from 0.13 - 1.55% were observed in most of the secondary market, as well as in the center and new projects. BALSTS index in March increased by one point and reached 160 points.
In February Riga standard type apartments are offered for an average of 671 EUR/m2. The highest apartment price remained in Teika, where the average price is at 803 EUR/m2 position, but the lowest price remained in Bolderaja – 468 EUR/m2. In Riga there were apartment price decreases from 0.15 - 0.28% in Mezciems, Vecmilgravis, Kengarags and Zolitude. A minimal price increases from 0.07 - 1.01% were observed in most of the secondary market, as well as in new projects. BALSTS index in February increased by one point and reached 159 points.
THE REAL ESTATE MARKET FOR STANDARD APARTMENTS IN RIGA IS UNIMPRESSIVE
In January Riga standard type apartments are offered for an average of 671 EUR/m2. The highest apartment price remained in Teika, where the average price is at 802 EUR/m2 position, but the lowest price remained in Bolderaja – 468 EUR/m2. In Riga there were apartment price dencreases from 0.15 - 0.28% in Mezciems, Vecmilgravis, Kengarags and Zolitude. A minimal price increases from 0.07 - 1.01% were observed in most of the secondary market, as well as in new projects. BALSTS index in January increased by one point and reached 158 points.
IN 2016 THE REAL ESTATE MARKET WILL BE A LITTLE "SHOOK UP"
The market situation at 2015 has been influenced by many geopolitical, economic factors and as the result the money going in to real estate was invested with more caution. After the decline of real estate market activity in the first quarter of 2015, at the second half of 2015 market activity returned to its previous level where it has stagnated.
THE NUMBER OF TRANSACTIONS COMPARED TO PREVIOUS MONTH DECREASED BY 8%!
From the beginning of 2015 the average apartment prices increased by 1.72%. In November in most of the secondary market, as well as in the center and new projects price increased from 0.13 -0.87%. BALSTS index in November increased by one point and reached 156 points. The highest growth in apartment prices remained in Teika, where the average price is at 792 EUR/m2 position. But the lowest price per 1m2 remained in Vecmilgravis – 536 EUR/m2. The number of transactions compared to previous month decreased by 8%.
„Real estate market development continues to stagnate due to low solvency on the demand side and weak economic activity. The current demographical situation and the lack of potential buyers in a sufficiently strong position financially is an aspect which lowers hope for increases in price for apartments in the standard-type segment. If we look at the situation in Riga we predict only minimal price increases for the immediate future, not exceeding 3.5% per year. Even this growth is possible only if the economy will develop normally and potential buyers will have access to funding”, comments the CEO of company BALSTS Aigars Zarins.
PRICES FOR NEW PROJECTS APARTMENTS DECREASED BY 9%
"Prices for new projects apartments in 2015 decreased by 9%. This decrease is due to the market focus on the local buyers. Activity in this segment is not sufficient due to the limited financing options from banks. New projects apartments in the suburbs of Riga are currently available on average from 1000 to 1750 EUR/m2, in the center of Riga from 1500 to 3900 EUR/m2. Price for exclusive properties with very good technical condition are from 2600 to 4000 EUR/m2”, comments the CEO of company BALSTS Aigars Zarins.
SALES VOLUME IN 2015 IS STILL SIGNIFICANTLY LOWER THAN IN 2014
In August 2015 there were apartment price increases from 0.06 -0.92% in most of the secondary market, as well as in the center and new projects. Minimal price decreases from 0.37-0.88 % were observed in Vecmilgravis, Mezciems and Jugla. This month the BALSTS index increased by one point and reached 153 points.
THE NUMBER OF TRANSACTIONS SIGNIFICANTLY LOWER THAN LAST YEAR
In June 2015 there were apartment price increases from 0.25 -1.06% in most of the secondary market, as well as in the center. Minimal price decreases from 0.14-0.90 % were observed in Purvciems, Agenskalns, Ziepniekkalns and new projects. This month the BALSTS index increased by one point and reached 152 points.
In June 2015 there were apartment price increases from 0.12 -0.45% in most of the secondary market, as well as in the center. Minimal price decreases from 0.14-0.37 % were observed in Vecmilgravis, Kengarags, Teika and new projects. This month the BALSTS index increased by one point and reached 151 points.
THE NUMBER OF TRANSACTIONS ARE CONTINUING TO DECLINE
The average apartment price in May increased to 659 EUR/m2. In March 2015 there were apartment price increases from 0.14-0.75% in most of the secondary market, as well as in the center. Minimal price decreases from 0.45-0.51% were observed in Plavnieki and Teika. This month the BALSTS index increased by one point and reached 150 points.
The average apartment price in April increased to 657 EUR/m2. In March 2015 there were apartment price decreases from 0.14-0.62% in most of the secondary market, as well as in the center and new projects. Minimal price increases from 0.30-0.50% were observed in Teika, Pļavnieki and Imanta. The number of transactions remained at the March level. This month the BALSTS index increased by one point and reached 149 points.
THE NUMBER OF TRANSACTIONS DECREASED BY 19.1%, BUYERS ARE ADVISED TO MAKE CAREFULLY CONSIDERED DECISIONS
In recent months, in most of the secondary market there has been an observable price stabilization. The average apartment price in March increased to 655 EUR/m2. In March 2015 there were apartment price decreases from 0.12-1.30% in most of the secondary market, as well as in the center and new projects. Minimal price increases from 0.19-1.13% were observed in Teika, Pļavnieki, Vecmilgravis and Imanta. This month the BALSTS index increased by one point and reached 148 points.
WAITING FOR THE PRICE DROP PEOPLE ARE NOT IN A HURRY TO BUY
In February 2015 there were apartment price decreases from 0.13-0.72% in Teika, Purvciems, Plavnieki and Mezciems. Minimal price increases from 0.15-0.74% were observed in Jugla, Mezciems, Vecmilgravis, Kengarags and in the center. This month the BALSTS index remains unchanged at 147 points.
Real estate transactions, compared to January 2014 decreased by 22%, but compared with December 2014 decreased by 26%. There is an impact on the transaction decrease from many factors which lead to uncertainty.
MARKET RECOVERY IS EXPECTED IN THE SECOND HALF OF THE YEAR WITH 3-5% PRICE INCREASE
The highest average apartment sq.m. price increases in Riga suburbs since the beginning of 2014 were observed at Kengarags (7.2%) and Imanta (7.4%). In the other largest Riga suburbs prices also rose in annual level. These increases can be explained by a significant reduction in properties on offer at lower price levels, and the remaining offer price increase.
In November 2014 apartment price increases were observed of 0.31 – 1.09% in most of the secondary market, as well in the center and new projects. A minimal price drop - 0.22% was observed in Bolderaja. This month the BALSTS index increased by one point and reached 147 points. The number of real estate transactions continue to increase – compared with the previous month it has increased by 5%.
In October 2014 apartment price increases were observed of 0.13 – 1.19% in most of the secondary market, as well in the center and new projects. A minimal price drop from 0.15-0.79% was observed in Ziepniekkalns, Teika, Purvciems, Plavnieki and Vecmilgravis. This month the BALSTS index increased by one point and reached 146 points.
In September prices within the of Riga apartment market continued to rise. Compared to previous years when the average price for Riga apartments was characterised by upward and downward fluctuations– this year price continued to rise all year. 635 Eur/m2 – this could be the prices index at the end of 2014. This would show an increase of 5% more, compared to the end of 2013.
THE NUMBER OF TRANSACTIONS IN AUGUST INCREASED BY 20%
„The number of real estate sale transactions in August, compared to the previous moth increased by 20%. Growth was largely influenced by non-residents increased activity before the Immigration Law amendments. But non-residents transactions do not dominate, including only one-fifth part of the totalling number of transactions in August”, comments the CEO of company BALSTS Aigars Zarins.
NEW PROJECTS DOWN TO 27.04% OF RIGA PROPERTY ON OFFER
The city center new projects apartment and fully renovated building average price per square meter in the first half, compared with the last year first half increased by 9.2%. In contrast, new housing estates of Riga suburbs average price of apartments in the same time period increased by 6.5%. The lowest price level recorded in the Old City - 1.2%, where housing prices moved closer to pre-crisis level. This relatively small increase in prices is due to the fact that the Old City is transformed into a historical, cultural and entertainment center, while buyers are interested in a more relaxing living environment with good infrastructure, including car parking zone.
“Prices of Riga new projects in 2014 increased by 5,1% and now reached an average 1360 EUR/m2. Last and this year price increase contributed to a decrease in local buyers interest. Consequently, more buyers have been looking at used apartments and houses. Local buyers are buying apartments for up to 100 000 EUR or above 200 000 EUR – which price level is usually for houses on Riga outskirts. The non-resident qualification until September 1st will go from EUR 150 000 to 200 000 EUR. In the first half of the year the number of applications for getting TRP permits increased by 43% and till the amendments to the Immigration Law this number will continue to grow. Tendency shows that investors are actively applying for residence permits not only for themselves, but also for all members of their family”, explains the CEO of company BALSTS Aigars Zarins.
75% OF THE TRANSACTIONS ARE FOR STANDARD-TYPE APARTMENTS
„Last year, new projects prices have risen by 10% and now reached an average 1,352 euro/m2. But looking past average price, the actual price range is quite wider. For example, standard apartment average price of approximately 45% above the new projects apartment average price. In the Riga market there is a lack of quality supply, which is not of these segments. When people assess their own financial position and the options, a significant section returns to the standart apartment market. Thus in Riga standart apartments are still the most popular real estate transactions, and compromise about 75% of the monthly total”, comments the CEO of company BALSTS Aigars Zarins.
In most popular neighborhoods it is difficult to find a renovated apartment, with a price lower than 700 EUR/m2. Most in demand are objects where you can move immediately, but it is also reflected in the apartment price. For example, unrenovated two bedroom apartaments in the Kangaraga secondary market can be found for 25-26 thousand euros. By contrast fully renovated two-bedroom apartment within a week could be sold for 35 000 euros.
THE NUMBER OF TRANSACTIONS WILL CONTRIBUTE TO PRICE INCREASE
The tendency observed in 2014 indicates that investors are attracted by an opportunity to purchase the buildings in a poor condition located in the centre of Riga. The objects are renovated and then sold as individual flats to non-residents who want to obtain temporary residence permits in Latvia. Investors are interested if the purchase amount of such buildings ranges from 0.5 to 2.0 million euros.
WILL INTEREST DECLINE FOR PROPERTIES NOW IN MOST DEMAND?
"250 000 euro to obtain a property for temporary residence permit – this is more than a 60% increase in the qualifying amount are expected if the amendments to the Law of Immigration will be adopted. Now for local buyers the predominant transaction amount is around 100 000 euro, while non-resident are in leading position for the segment from 100,000 to 200,000 euro. If the amount to qualify will increase, then the most active part of the market will remain without buyers. The economic situation of local buyer exclude the upper segment , while non-residents are looking for a properties in the highest “shelves”. At a time when the market begins to recover, it should be stimulated by all means, instead of attempting to put additional obstacles”, explains the CEO of company BALSTS Aigars Zarins.
On this year's 12th February in Latvia for the fourteenth time in a row was held Job Shadow Day. During Job Shadow Day students attended a variety of jobs and became shades for various employees - explored daily work.
We were visited by two shadows from different schools , which followed up on the real estate agents working day.
Thanks for the great interest shown by young people and thanks to the BALSTS team too, who introduced students with agents daily workday!
LARGEST NUMBER OF TRANSACTIONS DURING THE LAST SIX YEARS
In the last calendar year, the number of real estate transactions compared to 2012 increased
by 14%. The total transaction amount for 2013 is the highest of the last six years.
There has been an increase of buyer activity in all segments of the residential market. In
Riga, there were 13,861 transactions recorded for the 12 months. This annual increase
demonstrates that the Latvian real estate market has begun a slow and gradual move
‘’We expect that the Latvian real estate market in 2014 will not be as “flat” as this year. Firstly, the introduction of the Euro will make the Latvian market safer and more attractive, by removing currency risk. Western investors will begin to look at Latvia as a place for safe real estate investment. As a result of the recession, Latvian real estate prices are about 64% lower than in 2007, when average apartment prices were at their peak. Secondly, next year there is an expected increase in wages, and purchasing power. Market development will naturally follow local consumers' ability to purchase real estate. The number of potential borrowers who, with bank support, will be able to buy homes, will increase accordingly”, explains the CEO of BALSTS, Aigars Zarins.
" Stabilization of the real estate market have turned into a stable stagnation. Only in some segments, there have been larger and smaller activities. Since the beginning of 2013th number of transactions each month varies around 1,140 transactions. Also price of one square meter for apartments in Riga varies around maximum 1%" explains CEO of company BALSTS Aigars Zarins.
The number of transactions at the previous month fell down by 8%. This fall is due to the fact that August is vacation month in which market activity decreases. Either number of transactions is affected by the Latvian financial institutions workload of introducing the Euro, which reduced the number of issued credits.
August 2013 did not come up with any significant turns. 0.08 to 0.17% price increase were spotted in Center, new project segment and secondary apartments in Agenskalns and Imanta. 0.17 - 0.19% price drop were observed in Mezciems and Plavnieki. In total during August BALSTS index remains unchanged - 133 points. Since the beginning of 2013 Real Estate prices in Riga increased by 1.8%. The average price is 581 Eur/m2. Company BALSTS predicts that by the end of this year price increase could increase more than 3%. From January 2013 the number of transactions grew by 19%.
In July it is possible to observe an increase in the serial residential housing market of Riga: it is possible to observe both an increase in supply and an increase in the number of transactions. In comparison with July 2012 it has increased by 18%, and has reached 1,192 transactions per month.
June 2013 did not come up with any significant turns. 0.13 to 0.35% price increase were spotted in Center, new project segment and secondary apartments in Jugla, Mezaparks, Agenskalns and Imanta. 0.23 - 0.45% price drop were observed in Vecmilgravis and Bolderaja. BALSTS index increased for one point - 132.
THE MOST ACTIVE INVESTORS - CITIZENS OF RUSSIA, CHINA AND UZBEKISTAN
Obtaining of residence permit in exchange for a certain amount of investment has become very required. At the end of May, the most active investors were citizens of Russia, China and Uzbekistan. Since Immigration law amendments came in force in 2010 there have been issued 6249 residence permits. Total amount of investments since the beginning of these amendments is around 380.5 million Latvian lats. “4% of investments have been invested in Latvian corporations, 16% at banks subordinated capital, while the remaining 80% were invested in residential and commercial real estate”, the situation commented CEO of company BALSTS Aigars Zarins.
BALSTS INDEX REMAINS UNCHANGED FOR THE THIRD MONTH
April 2013 showed 0.17 - 0.58% price increase in new projects and secondary market in Centre, Plavnieki, Agenskalns, Jugla and Imanta. In opposition - price drop by 0, 13 to 0.68% were spotted in Mezaparks, Mezciems and Vecmilgravis. Average apartment price in Riga for April constituted 579 euros per square meter.
Real estate company BALSTS has taken the first steps to implement electronic form of property assessment in Latvia by 1st of July. We will begin the most radical changes that ever have been in property assessment industry.
MARKET SITUATION IS STUBBORN AS SPRING AND BEARS NO NEW DEVELOPMENTS
March 2013 showed 0.2 - 0.52% price increase in new projects and secondary market in Centre, Plavnieki, Agenskalns and Imanta. In opposition - price drop by 0, 17 to 0.9% were spotted in Purvciems, Mezciems, Vecmilgravis, Kengarags and Ziepniekkalns. Average apartment price in Riga for March constituted 579 euros per square meter.
What will be bought more this year - clothes or houses?
Since the beginning of 2012 real estate prices in Riga increased by 2,5%. BALSTS index
reached 129 points based on customer activity and growth in number of transactions.
Information reflected in Riga Cadastral Agency shows increase of a number of transactions in
Riga in 2012 by 7.3%.
Company Balsts this month made assumptions about the real estate market at 2013th year. We expect that drastic changes will not happen, because we are still suffering from crisis. Company predicts that 5% of transactions will increase next year, that can be explained by the bringing news from mass media that average wages will increase to 485 lats.Financial stability for Latvian people will grow slowly, that increase the number of potential credit borrowers as a result more people will be able to purchase their preferred accommodation.
The best investment opportunity for small investors.
There is stable demand remaining in Riga apartment rental market. Good quality and
well priced apartments are required and rented immediately which leads for significant decrease of the supply. That is the basis for increase of average rent rate in whole Riga by 7, 3%. In October, the average rent for apartments in suburbs was 4.1 EUR / m², apartments in the city center - 8.2 EUR/ m²,
new residential projects - 11.9 EUR / m².
45% of the society consider that real estate prices will increase
Housing prices in the central part of Riga and new projects, are under marginal decline (0.08 - 0.17%). At the same time, a number of districts increase insignificant and slightly(0.03 - 0.17%), for example Mezaparks, Mezciems and Zolitude. At this month, Balsts index increased up to 128 points.
In May BALSTS index reached 127 points, that is the result of the increased customer activity in the center of Riga and in the neighborhood. Price of apartments in the center increased by 0.40%, but price in neighborhood increased by 0.50%. Residential construction has resumed during May. Costumers are more interesed in short-term rental.
In March BALSTS index reached 127 points, that is the result of the increased customer activity in the center of Riga and in the neighborhood. Price of apartments in the center increased by 0.25%, standard-type apartaments price increased by 0.75%. Increased interest in the rental-purchase deals. Rental market for the determinants of becoming home owners. In the rental market determinants now are the home owners.
BALSTS Index in February is 126. Standard-type apartments’ price increased by 0,8%. Housing segment has activated – grows both – demand and supply. Due to the insufficient supply rental prices continue to grow - increase in February – 1,5%. Lease terms are getting longer.
On this year's 15th February in Latvia for the twelfth time in a row was held Job Shadow Day. During Job Shadow Day students attended a variety of jobs and became shades for various employees - explored daily work.
We were visited by four shadows from different schools too, which followed up on the real estate agents and real estate appraisers working day.
Thanks for the great interest shown by young people and thanks to the BALSTS team too, who introduced students with agents’ and appraisers’ daily work!
In January there is observed decrease in the number of transactions. BALSTS Index fell by 1 point and is 125. In rental segment prices continue to grow because of increasing demand. Low income level affects price decrease of lands and houses.
After the real estate company’s BALSTS observations in 2011 there was a significant drop in prices - 7.3% - in a segment of standard-type apartments. The opposite situation is observed in the center of Riga and in new projects where the price increased by 7.69%. Assessing the market as a whole it cannot be said that it would be revived. A similar situation is also foreseen in 2012. We forecast an increase of prices and increase of activity in the center of Riga.
Crisis of “Latvijas Krājbanka” has not affected BALSTS index, in December it is 125. In the next few months we expect a positive index change, which could be contributed by the Chinese people interest of Latvian real estate, as well as the expected growth of Finnish investors' interest.
On November 2011 real estate company BALSTS has come up with a new real estate market situation indicator - BALSTS index. This index was introduced in order to make the real estate market assessing quick and easy to both - industry experts and other stakeholders.
LATVIANS PREFER STANDARD TYPE APARTMENTS, FOREIGNERS – APARTMENTS IN NEW PROJECTS
After the company’s BALSTS observations during recent months in the real estate market more and more visible is following trend - local people are interested in standard type apartments, foreigners – in new projects. Rental market continues to evolve, more and more people choose to rent rather than buy a property.
the end of the year we expect the price increase
the real estate company’s BALSTS observations, we conclude that
in the summer not only reduced customer activity, but also have
fallen the prices of the real estate in Riga. The opposite situation
is observed in Jurmala - there real estate prices have
risen. In the last quarter of 2011 we expect a
major increase in prices over the past 12 months.
In August 31 BALSTS together with business partner - Nordea Bank organized an event called "Silk Road", whose main idea was to collect as much money as possible to charity,using your sales skills. We had a good time by selling pedestrians variety of handmade and packaged things.
In the end of the action we visited a new yogurt cafe "Yo Yo Frozen Yoghurt", where eating the tasty ice cream, announced the results - how much money has earned each team! Once again congratulate the team "007", you were great!
Everything we earned in the event was given to charity organisation "Gaišie Spārni"!
Standard-type apartment mid-price after 7 months in 2011 is 601 EUR/m2. Every month there were minor fluctuations in the price. The opposite situation is characterized in the rental segment – in the last 3 months rent prices have increased by 6%, what is a result of insufficient supply. The situation in the real estate market has become unstable, soon will survive only the "strongest" and most innovative companies.
In order to introducethe real estateagentswith the real estate that is offered for
sale now and to promote a cooperation between real estate companies, BALSTS in
28th July from 4 pm to 6 pm in Brīvības bulvāris 30 - 8 for the fourth time
held a Brokers’ Open or „Open Doors event for real estate agents”.
Not onlyprofessionals werewarmly welcomed to fhe event but also the media. In the informalatmosphere witha glass of wineandlight snacks people were able toobtain information about current
as well as discuss the situation in the real estate market.
22 was a real estate company’sBALSTSsemi-annualmeeting.As usual this meetingwas heldoutside the city, we all discussed the past
half-year, all events and achievments in a pleasantandrelaxed atmosphere. After that we all
together set the
targetsfor the nextsemester, we carried outa variety ofinventive group exercises,as well as relaxed,dancingBALSTStraditionaldance-HAKA.After theofficial part of the meeting, alltogether ina funcompanyalsocelebrated the endof the first halfand thebeginning ofthe nexthalf of the year, which comeswith newopportunities and challenges!
FIABCI Scholarship Foundation
is a non-profit organization that issues grants for individuals and
institutions interested in researching a real estate business all
over the world. Since the Fund's establishment, it has granted scholarships
to 75 different individuals and academic institutions for more
than 10 different countries. Aigars Zarins in March 2011 was
elected as the International Real Estate Federation FIABCI Baltic Chapter president,
and now, in July, him offered the opportunity to become a member
of FIABCI Scholarship Foundation, one of the 11 persons
responsible for scholarships and grants, which he gladly accepted.
1st half of 2011 both – prices and customer activity - remained stable and
homogeneous. Greater interest was only from Russia and inhabitants of former CIS
countries. However, in the middle of summer - in July – we expect a sharp
increase in rental prices, which will be linked to the increased interest of
inhabitants of Russia and
other East countries in the rental items in the center of Riga,
in Old Riga and
real estate company BALSTS observations in April, it shows that- towards the
summer, increases the real estate sales transactions in the center of Riga. Russian citizens
interest in the residence also has grown.
In Riga, March 4, 2011 in Radisson Blu Ridzene Hotel met real estate property association directors from Latvia, Lithuania and Estonia to establish the Baltic Department – FIABCI Baltics in the International Real Estate Federation (FIABCI). It was a long conversation and information exchange with greet outcome between the Baltic States and the various administrative levels of the International Federation. Aigars Zarins – Latvia’s real estate company's Balsts Expert president was elected as the FIABCI Baltic Department president.
Real estate company’s BALSTS observations made in the February shows that such factors as rising prices, increased investor interest in the Latvian real estate, young people's interest in the real estate agent profession contributes to the real estate market in post-crisis development.
company BALSTS has observed that, the new year 2011 has started with increase
ofclients activity in rental and
commercial segment. According to company’s research, activity from clients has
increased for 15%, comparing with the end of the year 2010, while property
pricesstay at the same level.
Real estate company’s BALSTS observations in December shows that, this is the first time when after a year price growth, at the end of
the year prices are dropped. In the segment of Series-type apartments prices has dropped average about 1,5%,
but in the rental segment up to 10%.
This year the Nordea bank organized the seminar course for real estate companies representatives with economist Andris Strazds. The main objective was to show bank as friendly and profesional, and also as a stable and reliable for it’s partners. During the seminar Nordea bank announced the contest „Seeking the Best Real estate agent”. The winner in this contest are our real estate agent Judite Alpa. She are real estate agent who has attracted more costumers to Nordea bank. Judite receivs a prize – Tom Tom navigator.
Real estate company’s BALSTS observations in October shows that in some segments customer activity has clearly increased. Basically, prices have remained at the same level, but there are areas where is a sharp price decline.
In September 8, 2010 we organised measure together with Nordea Bank. Our agents and bank employees during fun and attractive tasks was able to get to know each other's professional lives. During the Business Games we not only had really good time, but also strengthen the bonds of friendship with the bank employees!
Festive mood of the 1st September was in the BALSTS too, we organised a campaign, during which informated pedestrians about the situation in real estate market, gave advices and delighted everyone with colorful balloons and sweets. The smallest ones, who had their first school day, were really glad about small gifts too!
In July 9, 2010 BALSTS staff went away to nature, to discuss the half-year progress, to evaluate their work and set targets for the next semester. When each event participant had been at his word, and all work-related issues were discussed and resolved, everyone was ready to celebrate their work!
Company’s BALSTS observationts in June showed that there are not very significant changes in the real estate market compared with the previous month. Prices have stayed unchanged, slightly increased an activity of clients.
In July 1, 2010 BALSTS team met representatives of the leading Latvian Banks in a restaurant „KID”. After a greeting speech of a manager of Appraisal Department Ingars Karklins all together discussed the current situation in the real estate market and the role of banks in it. To develop closer cooperation, we are planning to repeat such activities regularly.
Therefore – we are looking forward to see you in the next BALSTS friends’ meeting!
2009 has been a year of price stabilization. This is the first time in 2,5 years there has been price growth. Since price decline in year 2007, real estate drop of prices has increased average to 75 %. That has ranked Latvia in first place in Europe.