“All indicators show that the real estate market development, which has begun during the last 2 years should continue in 2017. However, if entrepreneurship, small business development and the attraction of investment from abroad do not improve significantly, then the expected growth can turn into stagnation. We expect that in 2017 the average price growth will continue to increase, but will not exceed this year's growth rate which was 6-7% per annum” comments the CEO of company BALSTS Aigars Zarins.
Real estate transactions in 2016 compared to 2015 increased by 10.5%. Mortgage lending increased and almost every third real estate transaction was made through the programme created for young families with children – ALTUM. From the beginning of 2016 the average apartment prices increased by 6.5%. These increases can be explained by a significant reduction in properties on offer. BALSTS index from the beginning of 2016 has increased by 11 points.
Last year, new project apartment development was stimulated by much more activity among local buyers. This sector showed a 42% increase. 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 1450 to 3800 EUR/m2. Potential buyers are mainly interested in small fully finished 2-3-bedroom apartments.
Last year there was notably high interest within the standard type apartaments rental market. When people are searching for a job or start studies and from the regionsJob seekers, students, and new residents from out of Riga mostly move to Riga, than they mostly choose to rent apartments. Demand for high quality rental apartments still exceeds supply. This allows rental rates to hold at the current level and even increase slightly at 5 -10%. We expect that in the 2017 rental rates will increase at 5-7% range.
Demand for Riga office space market in 2016 still remained stable, explaining unchanged rental cost levels. We expect that rents in 2017 will not increase, as well as in some segments possibly even decline. The highest demand is for small and medium sized Class B offices from 30-100m2 in the city center or in the quiet center with average price up to 8 EUR/m2. Vacancy rate for Class B offices in Riga is from 4-5%.
Plašāku informāciju iegūsiet:
BALSTS, Lāčplēša iela 41,