ARCO REAL ESTATE

In June 2009 the price decreasing paces decreased in comparison with the previous month - the standard-type apartments prices decreased for 4,1%. It indicates that the prices have tendency to become stable. In the separate housing districts absolutely insignificant price decreasing was observed (1,5 %, 1,7%). It gives the possibility to think that the prices approached the lowest point, when lower the sellers would not be ready to sell their apartments. The offer reduction also justifies that. It is still observed the prices equalizing between different standard-type apartments and housing estates. The apartments in better series houses of are not essentially expensive then the apartments in worse series houses.

 

The average price of a standard-type apartment in June decreased to 508 EUR/m². Thereby the prices were on average lower by 68.6 % than on July 1, 2007. But in comparison with January 1, 2009, the average price of a non-renovated standard-type apartment decreased by 45,6%. Considering the material price recession for the last two years (-68,6%), the real estate market could get back the interest of foreign investors.

 

In June the average price of a 1 room apartment was 513 EUR/m² and this price, comparing with the previous month, has decreased by 2.29%; the average price of a 2 room standard-type apartment was 512 EUR /m² and this price, comparing with the previous month, has decreased by 2.48%; the average price of a 3 room standard-type apartment was 518 EUR/m² and this price, compared with the previous month, has decreased by 3.36%; and the average price of a 4 room standard-type apartment was 487 EUR/m² and this price, comparing with the previous month, has decreased by 8.11%.

 

In general, the number of apartments offered for sale is reduced for 6,8% comparing with the previous month. It allows to make the conclusion that the offer decreasing is not as rapid as in May, when on average it was 30%, but still dominates the tendency of offer decrease.

In housing estates of Riga, comparing the prices of June 2009 with the prices of July 2009, the highest price decreasing was observed in Zolitūde (-8,8%). It is explained by the prices equalization between the housing estates as the average price of apartments in Zolitūde is still the highest. But the smallest decreasing was observed on Jugla (-1,5%).

 

 

/10.07.2009./