ARCO REAL ESTATE

• In February 2011, no virtual price change was observed in the market of standard-type apartments. In February, the standard-type apartment prices decreased by 0.2% on average.

In February 2011, no virtual price change was observed in the market of standard-type apartments. In February, the standard-type apartment prices decreased by 0.2% on average. The average price of 1 m² of a standard-type apartment was 605 EUR. In October and November 2010 the price increase stopped, and during the last three months the prices have come down quite a bit. During the first two months of 2011, the overall prices decreased by 0.7%.

At the end of 2010 and in January of 2011, the overall activity of the real estate market declined. Price changes in the standard-type apartment market are minimal, and the prices currently are not changing. Apartment vendors have taken a waiting position and are reluctant to reduce prices, which indicate that at least now the prices are stable. Offers at abnormally low prices are frequently emerging in the market, and in such cases a buyer is found very quickly. Such apartments are usually offered due to financial problems of the owners, or in connection with leaving the country. In February, like in January, the supply increased – in the largest housing estates by 9.8%, and in Riga in general - by 10.8% so that the supply returns to the level of the autumn of 2010. Potential buyers looking for a property take their time and choose properties carefully, because the constant price level allows considering the different options more carefully.

The biggest price drop in February was observed at Ķengarags (-1.1%) and Jugla (-1.1 %). But the smallest price drop was observed at Pļavnieki and Teika (-0,2%). At Mežciems and Zolitūde no price changes were observed in February. In general, since the lowest point in September 2009, the apartment prices have grown by 24.2% on average.

Since the beginning of 2011, the average price of 1 m² of a standard-type apartment has decreased by 0.7%. The biggest price drop as per March 1, 2011 was observed at Zolitūde – -4%. But at Jugla the prices remain unchanged this year.

Number of apartments offered for sale in February 2011, compared with the level of the previous month, has increased both in the largest housing estates analyzed by the ARCO REAL ESTATE (9,8%), and in Riga City in total (10.8%).

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11.03.2011.