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JULY WILL BRING A PRICE INCREASE IN A RENTAL SEGMENT


In 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 in Jurmala.

1st half of the year 2011 was stable and unchanged, as planned, - not just the prices have remained at the same level, but also customer activity and behavior has remained unchanged. The 1st half of the year can be described as "stagnation" in real estate market - the first time since 2007 prices have remained stable for 6 months.

 

The only fact that is worth the attention - compared with the interest of local Latvian people, which has remained unchanged, we noticed increasing activity from Russia and inhabitants of former CIS countries. Although, assessing the number of real transactions, an increase wasn’t seen since the beginning of the year, however the interest of the foreign people has been higher than previously, and this fact gives hope to the faster market activation in the near future. These people basically are interested in apartments in new projects, as well as apartments in renovated houses. They choose the quality, and aren’t interested in properties with unfinished trim, where they’ll need to invest resources and time. For a while there is felt a lack of a good offers in the market- the demand noticeably exceeds the supply.

 

Due to the international music contest "New Wave" coming up soon there is already a greater interest about good and exclusive rental objects. In a result of increased interest rental rates may high up be artificiall, particulary it could be seen in the real estate market of Jurmala, partly in the center of Riga and the Old Riga too. Of course, looking back on a last year's events, it is realistic to get one year’s rent in one week in time of the contest "New Wave", becauce  last year for few houses in a good condition near the sea was offered even 20 000 Eur per week. We predict the increase of the number of transactions in the rental segment, but it will not be so huge to surprise. Rental prices in Jurmala should recover after the summer season, if it will be warm, otherwise the price drop can begin after the final of the contest "New Wave".

 

 

More information you will get:

BALSTS, Audeju Street 8,

Mob.: + 371 67076191

Fax: + 371 67076199

info@balsts.lv, www.balsts.lv

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