BALSTS index in January fell by 1 point and is 125, which can be explained by fall of customer activity and the number of transactions. We expect that in February the number of transactions will increase. The average price in January of standard-type apartments is 600 Eur/m2, of apartments in the center of Riga - 1210 Eur/m2, " said Aigars Zarins.
"January started with a fall of the activity and number of transactions. Comparing with December 2011, the number of transactions at the Land Registry dropped for 44%. If in Riga in December 2011 were 1337 transactions, then in January 2012 – 753 transactions. A significant difference in the number of transactions is mainly due to the Assumed physical personal property and undeclared income reporting law (the so-called zero return), which provides that property return must be submitted in SRS from March 1, 2012 to June 1, 2012 and the property statement must contain the particulars of the situation on the 31st December, 2011. So people who had previously bought property with a purchase value exceeding 10 000LVL, and due to the lack of time or other circumstances haven’t strengthened the rights in the Land Register, rushed to do it till year 2012 because so they would not have a need to submit a declaration of property. Of course, every year is a trend that at the end of the year number of transactions is increasing noticeably and in January it is falling, but this year drop was much steeper due to changes in the law. This increase in the end of the 2011 could not be considered as a market growth rate, because it happened due to the law changes. It is expected that significant changes in the real estate market in 2012 would not happen, as mentioned, this year will be "flat" with no significant price and activity fluctuations.
The house and land segment experienced the price decline. Because of the low income level many people can not have a bank loans, so interest in the home and land segment is shrinking, local residents interest is concentrated in apartments segment.
In January there is observed that many customers have been so-called "tourists", which are looking the properties, but they have no particular desire to buy something. Therefore seems that the market is active, but the real deals are less," situation in the real estate market in January comments Aigars Zarins.
"In the rental market in January prices continue to increase. The situation is the same -in the market is a lack of quality supply, especially in the city center. The offer is based on repairable flats, or exclusive apartments. Prices in January have risen by 2 - 3%, "explains company BALSTS manager.