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Market report about situation on October 2016



REAL ESTATE MARKET IS AS STUBBORN AS WINTER

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.

 

“Since the beginning of 2016 the average real estate prices have risen by more than 6% - this was the price level that we predicted to expect only in the end of 2016. Continuing supply reduction in the future will stimulate price increase, but there are no signs of market overheating because average price is around 56.3% lower than it was in the 2007th on July, when the average apartment price reached its all time highest figure - 1620 EUR / m²”, the situation commented CEO of company BALSTS Aigars Zarins.

  In October compared to the previous month there were 2.5% fewer apartments on offering the suburbs. This number has now been declining already for the sixth month. It is observed that the current smallest number of offers are in suburbs with the lowest prices - in Bolderaja and Vecmilgrāvis. This indicates that apartment owners are not in financial difficulties and they are not forced to sell their properties at such a low price level. Owners are willing to wait for further price increase.

In this month Riga standard type apartments price range has reached 708 EUR/m2. The highest apartment price remained in Teika, where the average price is at 855 EUR/m2 position, but the lowest price remained in Bolderaja – 480 EUR/m2. Riga standard apartments price drop has not been observed, while a minimal price increases from 0.14 – 0.4% were observed in most of the secondary market and in the center. BALSTS index increased by one point and reached 167 points.

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. However , it can be seen that people make their decisions about real estate purchase and investments slowly and carefully.

 

Demand for rental apartments in the center of Riga still exceeds supply. This allows the rental rate to hold at the current level and even increase slightly. Apartments in the center of the capital city are offered from 5-8 EUR/m2. If the apartment is located in the historical center and with very good technical condition, then from 10-13 EUR/m2.

 

Plašāku informāciju iegūsiet:

BALSTS, Lāčplēša iela 41,

Tālr.: + 371 67076191

Fax: + 371 67076199

info@balsts.lv, www.balsts.lv

  

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