Latio”: In January, rent index of standard type apartments was EUR 2,2 per sqm in RigaFebruary 8th, 2010
By “Latio” market report data, in January, prices on the rent market retained the level of the preceding month at the average rate of EUR 2.2 per sqm for apartments in moderate condition in Riga residential areas. The index has been calculated as the average rate out of all standard type apartments with different number of rooms in all residential areas.
In January, the rent cost LVL 50-60 a month on average for 1-room standard type apartments, in moderate condition, in Riga residential areas. 2-room apartments - between LVL 80 and 90 a month, plus charge for public utilities. Rent rates of 3-room and 4-room apartments were approximately the same: LVL 110 -120 a month on average depending on location and technical condition of the apartment.
In turn, in Riga centre, the average rent rate of apartments was about EUR 4.8 per sqm in January. In new developments - EUR 7.3 per sqm on average. Currently, further decline in rent rates is not observed. “Possibly, there might be some price corrections, though not that sharp as over the recent year,” notes Girts Krumins, Manager of Latio Rent Department.
Supply of detached houses for rent has grown in the latter half-year. Rental offers are found in all segments of detached houses at present, whereas demand is very little, and transactions are concluded only for fully finished and quality houses on good location. In most cases, such objects are rented by foreign citizens and employees of embassies. There is not almost any demand in terrace houses and detached houses built during Soviet rule. Currently, asked rent prices fluctuate between LVL 350 and 1,500 a month depending on the area of the building, location and degree of finish.
The specific weight of rental offers is very different in different areas of Riga and Riga District. For example, in Bergi and Kipsala, amount of houses for rent account for ca.85% out of the total number of houses found in supply.
As compared to the year 2007, the difference in rent prices of apartments of different space diminished significantly in the latter half of the year 2009. Currently, a hardly noticeable trend for prices to become more distant slightly is being witnessed.
Decline in rent prices on the rent market of apartments started 6 months later than decline in selling prices in 2007. At present, the rent rates as of the end of the year 2003 are achieved.