ARCO REAL ESTATE

The rates of standard-type apartment price reduction increased also in February. Compared with the previous month, the prices of standard-type apartments declined by 9.6% in February. The average price of standard-type apartments declined to 776 EUR/m² in February; thus, the prices are in average by 52% lower than on July 1, 2007 when the average price of a non-renovated standard-type apartment was 1620 EUR/m². In comparison with January 1, 2008,  the average price of a non-renovated standard-type apartment  is decreased by 45%.

 

 The number of apartments supplied began to grow in February in comparison with previous months. But the demand for apartments continued to decrease due to the current economical situation. In general, the number of apartments offered in February has grown by 9% in average, in comparison with the previous month. The supply through the real estate portals increased by 9% in average in comparison with the previous month; the supply through the announcement portals increased by 5% in February. Thereby, we can see that the activity in the apartment market has grown slightly. It should be noted that more and more apartment owners offer their apartments in exchange to other dwellings – of lesser area or located in other place.

 

The average price of a 1-room apartment in the housing areas reviewed by „Arco Real Estate” in February amounted to 795 EUR/m², and this price compared with the price level of January was decreased by 9.3%. Average price of a 2-room standard-type apartment amounted to 768 EUR/m² (decreased by 10.6% in comparison with the price of the previous month); average price of a 3-room apartment amounted to 781 EUR/m², (decreased by 9.0%); and the average price of a 4-room apartment amounted to 759 EUR/m² (decreased by 9.3% in comparison with the price of January).

 

Traditionally, the highest price level in February was observed at Teika, where the average price of 1 m² was 881 EUR, and at Zolitūde where the average price of 1 m² was 872 EUR. But the lowest prices in February were observed at Bolderāja where the average price of 1 m² was 678 EUR.

 

Outside Riga, in largest cities and towns, the price decline has been similar. The biggest price fall had been observed in Jelgava where the standard-type apartments prices decreased by 10%, to 586 EUR/m² in average, and in Salaspils - by 9%, so that the average price amounted to 751 EUR/m². In Kauguri and Ogre, the prices decreased by 8%, to, accordingly, 678 EUR/m² and 725 EUR/m² in average.