ARCO REAL ESTATE

 

 

According to the monthly overview of the real estate market prepared by the real estate company „Arco Real Estate”, in May the biggest decline of prices of standard-type apartments was observed in housing estates with lower infrastructure (Vecmīlgrāvis, Ķengarags, Bolderāja) located further away from the city centre, as well as at Purvciems, due to the large percentage of speculative transactions and the relatively high proportion of free apartments offered. 

As of today, the highest average value was observed at Zolitūde due to percentage of the relatively more expensive series (119th, 104^th series) and the relatively smaller number of apartments offered in this housing estate.

The number of apartments offered for sale in the market is reducing, which means that mostly the problematic apartments (apartments, belonging to owners who are forced to sell the apartments at any lower price while the other sellers refuse to sell the apartments at such a low price level and remove them from the supply portals) still remain in the market. This is a positive trend, since in the case of a decrease in the number of supply, the prices should stabilize.

The price drop of the recent months reflects the main speculative business segments (the largest drop was observed just in the 1-room apartment sector; this is illogically since a 1-room apartment is the smallest dwelling, therefore, the owner, who has really bought it for living, has no place to move, so that this trend may be explained solely by purchase of those apartments for speculative business purposes).

The average price of a standard-type apartment in May decreased to 529 EUR/m²; thus the prices were in average by 67.3 % lower than on July 1, 2007, when the average price of a non-renovated standard-type apartment was 1620 EUR/m². But in comparison with January 1, 2009, the average price of a non-renovated standard-type apartment decreased by 43.4%.

In the housing estates reviewed by Arco Real Estate in May, the average price of a 1 room apartment was 525 EUR / m², and this price, compared with the previous month, has decreased by 6.58%; the average price of a 2 room standard-type apartment was 525 EUR / m², and this price, compared with the previous month, has decreased by 7.41%; the average price of a 3 room standard-type apartment was 536 EUR / m², and this price, compared with the previous month, has decreased by 7.43%; and the average price of a 4 room standard-type apartment was 530 EUR / m², and this price, compared with the previous month, has decreased by 10.47%.