“Although the economical situation has shown growth in 2017, the dynamics of newly issued mortgage loans is much weaker than in Lithuania and Estonia. The number of real estate transactions last year decreased by 1.6%, whereas in the year 2016 it increased by 10.5%. At the moment, the labor market has begun to "heat", but economical trends in the labor market are always reflected in a slight delay. It would take time for people to become confident of the financial situation and consider buying a home. We expect that in 2018 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.
From the beginning of 2017 the average apartments prices increased by 6.8%. These increases can be explained by a significant reduction in properties on offer. BALSTS index from the beginning of 2017 has increased by 11 points.
On average, within the new projects market there were observed 120-130 transactions per month. 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 apartments rental market. Job seekers, students, and new residents from out of Riga mostly move to Riga, and 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 2017 still remained stable, explaining unchanged rental cost levels. We expect that rents in 2018 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,