ARCO REAL ESTATE

In July 2009, in comparison with June, the price decreasing is evaluated as insignificant – the prices of standard-type apartments decreased in July by 2,8 %. It is observed that temporarily is like the process of stabilization, as people are not ready to sell their apartments cheaper. It should be also taken into consideration that in the previous summer months the same there was fairly small activity on the real estate market. In the separate housing estates is observed completely insignificant price decrease (0,3%; 0,7%). In its turn the number of proposal is even a little bit increased in comparison with the previous month. However, bearing in mind that during the previous months the number of proposal systematically reduced, this increment is still not possible to evaluate as the new market tendency. It is also observed the price leveling between different type apartments, as also 1-rooms apartment in different housing estates. 1 room apartment in the definite type of house costs similarly without reference to the location.

 

The average price of a standard-type apartment in July decreased to 494 EUR/m². Thereby the prices were on average lower by 69.5 % than on July 1, 2007, when the average price of a non-renovated standard-type apartment was 1620 EUR/m². For its part, in comparison with January 1, 2009, the average price of a non-renovated standard-type apartment reduced by 47,1%.

 

In July the average price of a 1 room apartment was 507 EUR/m² and this price, comparing with the previous month, has decreased by 1.21%; the average price of a 2 room standard-type apartment was 503 EUR /m² and this price, comparing with the previous month, has decreased by 1.63%; the average price of a 3 room standard-type apartment was 483 EUR/m² and this price, compared with the previous month, has decreased by 1.82%; and the average price of a 4 room standard-type apartment was 483 EUR/m² and this price, comparing with the previous month, has decreased by 0.81%.

The number of apartments offered for sale in July 2009 in comparison with the previous month is a little bit increased. The total quantity of proposal in July is increased by 4,3 %. Wherewith it allows come to the conclusion that the proposal decrease does not have so definite market feature any more.

 

Māris Laukalējs, ARCO REAL ESTATE member of the board, head of appraisal department: „The price decreasing rates are low this year, in separate housing estates the prices even increased, but also the offer is increased. Taking into consideration the fact that the data is not long-term, it is unable to speak about the tendency, however it seems that in the future mouths the rate of price decreasing could be comparatively low – 2 till 3% per month”