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Rapid increase of prices for apartments in Riga demanded by foreign buyers

In July the price of standard type apartments in Riga decreased for already third month in a row, however prices for new and renovated apartments in the centre of the capital city have increased during the year, said in housing market overview by Latio.

Activity of buyers has remained at the level of previous months, but the average price of a square meter in standard type apartment in Riga in July continued to decrease already third month in a row and was 576 euro – two euro or 0.3% less than in previous month.

In contrary to standard type apartment market, last year has demonstrated a rapid increase in prices of new and renovated apartments in Old Riga and Riga centre. Prices of new housing at the centre of the capital have increased by 18% in one year period and by 24% in two year period. For separate projects in the centre of Riga prices have increased by 50%. Prices of quality apartments in renovated pre-war houses of Old Riga have increased by 18% in one year period and by 23% in two year period. Prices in quiet and close centre have increased by 14% since June 2010.

The rapid rise of apartment prices in the centre of Riga is due to increase in demand by foreign buyers. Great part of them is purchasing apartments to receive temporary residence permits. An important factor for such a raise in prices is the limited offer – there are very few new project apartments in Riga centre, the offer is short for good apartments in renovated houses. Foreign buyers are particularly interested in this kind of properties.

In July the prices for average condition apartments at the close centre were 900-1200 euro per square meter and 1200-1500 euro for renovated apartments. The prices at the quiet centre were 1200-1400 euro per square meter, and 1600-1800 euro per square meter for renovated apartments. Prices for very good apartments at renovated houses are starting from 2000 euro par square meter reaching even 5000 euro per square meter in separate houses.

The demand of apartments in the centre by local inhabitants remains stable therefore prices of properties further away from Old Riga and outside interest of foreign buyers are not increasing. Prices of medium condition apartments in the further centre in pre-war houses were 650-900 euro per square meter, and 900-1100 euro per square meter for renovated apartments.

In July prices of apartments in new projects depending on the type of decoration, project and location at Riga city blocks were 900-1400 euro per square meter, 1100-1600 euro per square meter in the centre of Riga, reaching 2500-3500 euro per square meter in houses with good location.

Latio

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