Latio: Prices of standard type apartments have not changed, prices for good apartments in the center are increasing
June 30, 2011
The prices of Riga standard type apartments continue its fluctuations at the level of 580 euro and in May the average price was 851 euro per square meter – two euro less than in April. The increase in price is observed for good apartments in the center of the capital city due to demand coming from foreign buyers, as said in Latio housing market overview.
During a year the price for standard type apartment has increased by 1%: in May 2010, a square meter of standard type apartment cost 575 euro. Since the beginning of re-increase in apartment prices in September 2009, when the average price of a square meter reached 500 euro, it has increased by 16,2% till May 2011.
The demand for Standard type apartments has remained unchanged and it is rather low. In practice the deals of change are still taking place when the seller is looking for housing within the same deal. In May it was popular to change larger apartments to smaller and further away from the center.
„A high interest of foreign buyers for quality apartments in Old Riga, Riga quiet center and close center has remained, but the interest of local buyers at Riga center apartment segment has become moderate. It is ensured by proportional changes observed for deals at different parts of the city. At the further center where the demand is made by local buyers mainly, and the offer contains less housing in good condition, the volume of the deals is decreasing and has reached half of all the deals made on Riga center apartments – previously this rate was 60% of the apartment sales deals at Riga center. This year the number of deals is increasing for housings in Old Riga, close and quiet center,” emphasizes Vija Gailite, Head of Latio housing sales department.
The growing interest of foreign buyer to purchase apartments at the center of Riga is related to possibility of receiving temporary residence permit and to other considerations, e.g., prospective capital gains.
As the demand of foreign buyers for quality apartments at good places is increasing, the prices for this type of apartments in May were growing. The minimum price of good apartments in renovated houses at the center was 2000 euro per square meter, reaching 5000 euro per square meter at separate houses. Deals are concluded for price ranging from 2300 euro to 2700 euro per square meter and there is a tendency to approach the level of 3000 euro per square meter.
The prices in May for medium condition apartments at the pre-war houses in further center were 650-900 euro per square meter and 900-1100 euro for renovated apartments. Medium condition apartments at the close center could be bought for 900-1200 euro per square meter and 1200-1500 euro per square meter for renovated apartments. Prices at the quiet center for medium condition apartments were 1200-1400 euro per square meter and 1600-1800 euro per square meter for renovated apartments.
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