ARCO REAL ESTATE

 

 

In October 2009, in comparison with September, the price changes are evaluated as not significant – the prices of standard-type apartments in Riga increased in October by 0,8 %. In the separate Riga housing estates and segments of standard-type apartments the prices a little bit decreased – in Bolderājā (-1,3%), Ziepniekkalnā (-0,1%). However, in the most parts of housing estates the prices increased in October even till 2,5%, but on average from 0.2 till 2,5%. Most probably, the total offer decrease -6.5% also influenced to this kind of price increase in the most part of housing estates that should be especially pointed out in Zolitūde – about 40%. Now it is difficult to find 1 and 2 room “low price” apartment in any housing estate of Riga by the prices that were in August and September, paying attention to the proposal decrease during the second month. As far as there is no possibility to get anything cheaper, it explains why there happen the deals with 1 and 2 room apartments with much higher prices than a few months ago. However, the prices for 3 and 4 room apartments are without significant changes. Probably, together with the low-price apartment disappearance from the offer, the small, but constant price increase would happen in the nearest months, but still it should not exceed the limit of a few percentages.

 

    Mainly the price increase is explainable with the sharp decreasing of offers number, especially in the low-price category. As far as the most part of the deals are made without the credit attraction, it is possible that the new law of capital increase tax would stimulate to invest saved up money into this segment of the real estate. In this turn, the observed price increase in October is considered as the price stabilization on the real estate market.

   

    The average price of a standard-type apartment in October decreased to 491 EUR/m². Thereby the prices were on average lower by 69.7 % 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 47,9%.

 

    In the housing estates reviewed by ARCO REAL ESTATE in October the average price of a 1 room apartment was 517 EUR/m² and this price, comparing with the previous month, has increased by 3.82%; the average price of a 2 room standard-type apartment was 496 EUR /m² and this price, comparing with the previous month, has increased by 2.27%; the average price of a 3 room standard-type apartment was 478 EUR/m² and this price, compared with the previous month, has stayed without changes; and the average price of a 4 room standard-type apartment was 471 EUR/m² and this price, comparing with the previous month, has decreased by 1.67%;

 

    Price fluctuation is observed in October in housing estates of Riga. In the most part of housing estates is pointed out insignificant price increase, in its turn in some housing estates the prices decreased. Comparing the prices of October 2009 with the prices of September 2009, the highest price decreasing was observed in Vecmīlgrāvis (2,5%), Imanta (2,3%), the same as in Mežciems (2,2%) and Zolitūde (2,2%). However, the lowest price decreasing was observed in Bolderāja (-1,3%) and Ziepniekkalns (-0,1%). Nevertheless, the prices in Riga in October predominantly are not significantly changed.

 

Māris Laukalējs, ARCO REAL ESTATE member of the board, head of appraisal department:  “There is still no clearance about the development of real estate market together with the exception of budget and all connected tax package legislation. Together with that, nowadays tendencies of price increase could become just short-termed. These changes are still not the evidences of the stable real estate price increase tendency.”