Latio: Apartment rental costs in downtown Riga have increased
15 March 2012
The rent of apartments in the center of Riga has increased in February, while the rental costs of apartments in the outer city districts has remained unchanged from January, shows the latest Latio housing market review.
The increase of rental costs in the capital city’s center was caused by the high demand for good rental apartments, as well as by the limited offer of apartments corresponding to the requirements. The turnover of tenants is low, and existing tenants are trying to negotiate long rental periods;the offer of rental apartments in downtown Riga is not increasing.
“Significant changes are not expected in the coming months in the apartment rental market of Riga, and the level of rental costs will not decrease. The rental offer could increase along with increased activity of apartment buyers. With some tenants purchasing their own property, the rental offer would increase again, and tenant turnover would also resume. However, demand for rental apartments will remain at a high level, since more and more people are choosing rental housing,” explains, Ģirts Krūmiņš, head of the Latio rental department.
The rental demand in the city’s center is generated by both locals and foreigners. In the beginning of February, the demand for good rental apartments was also increased by foreign students starting their second semester.
Demand in downtown Riga is greatest for high-quality, furnished one-room, two-room or three-room apartments with an area up to 80 square meters, at a price of EUR 350–600 per month, excluding utilities. The offer of such apartments is limited, and available apartments are rented out quickly.
The average monthly rent of new apartments in Old Riga in February, depending on the apartment’s size, was 11–14 euros per square meter;in the inner center of Riga –11 euros;in the outer center – 8 euros;in the quiet center –10–12 euros.
The average monthly rent in February for apartments in pre-war brick buildings in Old Riga was 9 euros per square meter;in the inner center – 8–10 euros;in the outer center – 6–7 euros;in the quiet center – 9–10 euros.
The average monthly rent of standard apartments in average condition in the outer districts of Riga stayed unchanged in February, at 3.5 euros per square meter (excluding utilities). In recent months, the rental price is increasing for standard apartments with multiple rooms. Such apartments are mainly demanded by families who are unwilling or unable to purchase their own property or have had to leave their previous home.
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