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Market report about situation on April 2016



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.

 

There are several factors in Latvia that slowed down market development. A negatively perceived demographic situation; insufficient promotion of business development; frequent unpredictable changes in tax policy, all leading to an unfavourable environment for attracting foreign investment. A positive aspect is the minimal average wage growth, which has made more accessible lending from banks for the purchase of real estate, as well as a programme created for young families with children - ALTUM. However, these factors are still not enough to develop the market in Riga to the level of our neighbors. At the current growth and pace of development Riga will need more than 10 years to reach the level of our neighbors.

  In April Riga standard type apartments are offered for an average of 685 EUR/m2. The highest apartment price remained in Teika, where the average price is at 823 EUR/m2 position, but the lowest price remained in Bolderaja – 476 EUR/m2. In Riga A minimal price decrease was observed only in Mezaparks – 0.12%. But a minimal price increases from 0.06 - 1.92% were observed in most of the secondary market, as well as in the center and new projects. BALSTS index in April increased by one point and reached 161 points.

Local buyers atctivity in the new project apartment segment remained at the previous month's level. 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

 

With regard to Riga office space, A class space is being offered for tenancy at 12 – 16 Euros per square meter, and, in the most prestigious buildings, up to 16-19 Euros per month. Class B space is on offer at 7,00 – 12,00 Euros per square meter per month, before service charges. The greatest demand is for premises of an area less than 200 sq.m.

 

 

 

Plašāku informāciju iegūsiet:

BALSTS, Lāčplēša iela 41,

Tālr.: + 371 67076191

Fax: + 371 67076199

info@balsts.lv, www.balsts.lv

  

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