Latio: The prices of the demanded apartments has risen
November 29, 2011
According to the most recent Latio housing market report in October various apartment market segments of Riga differed in terms of activity therefore the prices of the most demanded apartments in the center of the city and new projects were gradually rising, however the prices of standard apartments stayed at the same level.
“The prices of high quality apartments in the center of Riga have been rising over a long time since the demand for such property is formed mostly by foreign purchasers, and their activity is still high. The prices of good quality new project apartments being purchased by both foreign citizens and local dwellers grow too. It should be taken into account that corresponding offers in the above segments are quite limited, good quality apartments meeting all customer’s requirements in pre-war houses in Riga are not enough, and new apartment offers appear rarely,” explains Vija Gailite, Head of Latio Housing Sales Department.
In the third quarter of 2011 the average price for an apartment in the micro-districts of Riga was EUR 1158 per sq.m. It has grown by 0.8% comparing to the second quarter and by 7.1% comparing to the third quarter of 2010. In the center of Riga the average price of new apartments (including renovated buildings) was EUR 1965 per sq.m, and EUR 3180 per sq.m in Old Riga. In the center of Riga and Old Riga the average prices has grown by 7% and by 6.4% comparing to the second quarter of this year, and by 9% and 22.7% comparing to the third quarter last year. The prices of the apartments at several highly demanded new and renovated projects have been growing considerably faster, by 50-70% in a couple of years.
The price range of transactions is quite wide and depends on the type of decoration, project, its location and other aspects. The price of the new project apartments is EUR 700-850 per sq.m in Riga suburbs, EUR 900-1400 per sq.m in the micro-districts of Riga, EUR 1100-1600 per sq.m in the center of Riga, reaching EUR 2500-5000 per sq.m for well-located projects in the center of the city.
In October the price of the apartments in pre-war houses in average condition was EUR 900-1200 per sq.m, and EUR 1200-1500 per sq.m for repaired apartments, in the quiet center the price of the apartments in average condition is EUR 1200-1400 per sq.m, and EUR 1600-1800 per sq.m for a repaired apartment. The price of high quality apartments in renovated houses in the center of the city starts from EUR 2000 per sq.m, and prices of flats in some houses can reach and overcome the level of EUR 5000. In the further center the price of the existing apartments in average condition was EUR 650-900 per sq.m, and EUR 900-1100 per sq.m for renovated apartments.
As for the prices of standard apartments in October the average price increased by one euro and amounted to EUR 576. The prices of standard apartments have decreased by 1% from January 2011 and over the last 12 month. The activity of purchasers in the standard apartment segment is not high.
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