„Latio”: In January prices of standard type apartments have preserved stability; market activity remains at previous level
February 3, 2011
According to Latio market review, the prices of standard type apartments in Riga in January have remained at the level of previous months and are considered to be stable due to the price fluctuations at the level of 580 euros per square meter for already several months. Different comparing to the beginning of previous years when the level of market activity went down, decrease of interest of potential buyers at different market sections was not observed in January this year.
Comparing to December, the average price for square meter of standard type apartment in Riga has increased by 0.5% or three euros – from 579 to 582 euros. The average price decreased by two euros in December and November, but increased by three euros in October.
As per assessment of period of one year, the average price of standard type apartment in Riga has increased by 5.8% - in January 2010 the price per one square meter of standard type apartment was 550 euros. Since the returning of price increase in September 2009 when the average price per square meter of standard type apartment reached 500 euros it has continued to increase by 16.4% till January 2011. Comparing to standard type apartment price maximum of 1720 euros per square meter in April 2007, the prices at the beginning of 2011 were still 66,2% lower.
„Different comparing to the beginning of previous years when the level of market activity traditionally went down, the decrease of interest of potential buyers at different market sections was not observed in January this year. Besides, it concerns all market segments with slight difference among them – activity continues to grow and is high already for the apartments in Riga centre and properties in Jurmala where demand comes from foreign citizens;in segments where demand is ensured by local buyers, interest is more moderate but has not decreased. In January there were more potential buyers with intention to use bank loan for their purchase,” explains Vija Gailite, Head of Latio Housing Sales Department.
January showed a rise in number of people willing to sell their apartment and buy a smaller one due to increasing public utility costs or debt for their payment. However the market offer of smaller apartments in good condition and for market prices is currently not sufficient.
During the first month of the year the tendency observed in previous three months when number of apartments on market offer decreased continued in Riga. The total market offer in apartment segment has returned at the level of first half of 2010 but is higher than in 2009. As the apartment prices have retained stability, some sellers have become negotiable and have agreed to decrease the price especially in cases when funds are an urgent demand.
The January prices for standard type apartments in good condition at city parts Purvciems, Plavnieki, Zolitude, Imanta, and Ziepniekkalns were as follows: 21 000 – 32 000 euros per one one-room apartment, 29 000–38 000 euros per two-room apartment, 35 000–47 000 euros per three-room apartment, 42 000–54 000 euros per four-room apartment. At city parts more distant to city centre, like Vecmilgravis and Bolderaja, prices of apartments are 20% lower in average.
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