Residential market

17.09.2013

Prices

Apartment prices in Riga rose by 2%. Prices of newly developed apartments rose 8% in the city centre and 13% in the suburbs in 2012, building on growth of 6% in the centre and 15% in the suburbs in 2011. Still, that growth comes after a collapse in 2009 of 35% in the centre and 45% in the suburbs, so prices are still well below the pre-crisis peak.

Prices of new apartments in the city centre and old town range from €1,500 to €3,800 per sqm at the start of 2013, and prices for very exclusive projects can even reach €4,800 per sqm.

New apartments outside the city centre sell for €1,000 to €1,700 per sqm at the start of 2013. New apartments in these suburban areas usually are sold fit-out with everything except kitchen.

 

Supply

More than 800 new units were delivered in Riga in 2012, significantly more than the 500 units deliv- ered in 2011 and 580 units delivered in 2010.

At the start of 2013, there were over 1,600 unsold newly developed apartments available on the primary market, this is 200 unsold apartments less than last year. Almost 500 unsold units are offered by banks, so the banks or their subsidiary companies offer more than 30% of all market available new apartaments.

Usually banks are selling their apartments for average market price.

The supply of apartments in renovated houses with an area from 70 to 150 sqm in the price range from €150,000 to €300,000 in the quiet centre and old town still does not satisfy demand.


STRATEGIC ANALYSIS_Latvia