Housing supply in the first half of year had a trend to increase and later on in the second half of the year it stabilized. Overall supply rate can be described as similar to the end of 2011. Housing supply and transaction prices can be estimated as stable. Currently there is no sign of significant changes in the housing market in nearest future. Therefore this could be considered a convenient time for purchases or property sales.
Towards the end of 2012, Riga's active centre average apartment sales prices ranged from 800 to 1,300 euros per square meter, near-center - average from 1200 to 1900 euros per square meter. Apartments in the lowest price range are mostly in bad condition. In order to bring them to proper condition, they require considerable additional investment. The most notable square meter average price change for residential apartments observed in Jugla (+4,6%), at the same time smallest increase was in Zolitūde - +0. 5%.
December showed some insignificant fluctuations of residential pricing. Both, price increase and decrease were observed in Riga centre, sleeping districts and in new projects. There were increase of price in new projects, Mezaparks and Jugla in range from 0.28 to 0.38%. In opposite price drop by 0.18 to 0.54% were spotted in Plavnieki, Vecmilgravis and Bolderaja. Overall during December Balsts index increased and reached 129 points.
"Significant price changes in 2013 are not anticipated. There will be no significant fluctuations and maximum price increase in the real estate market could reach 5%. Since the financial stability in Latvia will gradually grow, the number of potential borrowers will increase accordingly. This group most likely will be ready to purchase apartments using bank financing,” mentions Aigars Zariņš, the head of the real estate company BALSTS..
Rental rate for commercial properties may increase from 5 - 10% based on decrease of modern office space supply. But as development sector has started to rise and customer interest in new objects is becoming larger, our company forecasts growth of commercial real estate market in 2014.
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