ARCO REAL ESTATE

• The average price of standard-type apartments has increased by 0.6% in February.

Positive price fluctuations have been observed in the housing market at the beginning of 2012. The average price of standard-type apartments has increased by 0.6% in February. Thus, the average standard-type apartment price has reached 588 EUR/m².

Standard-type apartment prices in housing estates are generally assessed as stable. The price changes are to be considered price fluctuations within 1%, and the prices in such a way tend to stabilize after the long recession during the whole 2011. The reason of the moderate price increase is the fact that the supply level is lower than usual, as well as the reduction of number of cheap apartments offered for sale. In all major housing districts of Riga the most demanded apartments - mostly one-room apartments - have become a little more expensive. One-room apartment prices in standard-type houses in February increased on average by 1%.

Since January 1, 2012, the average price of 1 m² of a standard-type apartment has increased by 0.9%. The largest growth of the average price of 1 m² was observed at Jugla – by +1.8%. The most insignificant price growth during the first months of the year was observed at Teika - by +0.3%. This is explained by the fact that the prices have continued to grow at Teika already since the beginning of 2011 and the price level is high enough. While in other larger housing estates the prices are slightly growing after the price drop that was observed throughout 2011.

In February 2012 the average standard-apartment price has returned to the level of July 2011 - 585 EUR/m². The prices on average are by 63.9% lower than on July 1, 2007, when the average price of a non-renovated standard-type apartment reached the highest ever value of 1620 EUR/m². But the average price of a non-renovated standard-type apartment in February has decreased by 3.4% if compared with the price level of the end of 2010.

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16.03.2012.