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August has been an active month in the Riga City centre apartment segment both as to the number of transactions, and to the price growth. The real estate market activity can be explained by the fact that August was the last month when non-residents could purchase real properties in Latvia and receive a temporary residence permit before the date of effect of the Immigration Act amendments where it is stated that from September 1, 2014, the minimum purchase amount shall be increased to 250 000 EUR, informs Mr. Māris Laukalējs, a Member of the Board of ARCO REAL ESTATE.
The market activity where transactions with properties for 150 000 EUR were dominating, demonstrated also the fact that the largest price increase compared with July, was observed in respect of apartments which, in the view of technical condition of the property, were in a very good condition (+ 2.65%). Just these residential spaces were most demanded in the non-resident sector, taking into account that foreign citizens mostly wish to purchase a property with a good interior decoration, ready for immediate living, without additional investment of time and finances, specifies Mr. M. Laukalējs.
„A price increase is expected in the apartment segment, in which the market price now is close to EUR 250 000, while in the apartment segment covering the price range around 150 000 EUR, there is expected a price decline, as these properties will no longer be actual for non-residents wishing to obtain TRP," says the expert commenting the expected market activity in the coming months and property price adjustment in certain price categories.
In the Riga City centre apartment market overview prepared by ARCO REAL ESTATE it is stated that in August 2014, the apartment prices increased by 1.60% in the city centre. The average price of apartments in the city centre in August increased reaching the position of 2113 EUR/m².
01.10.2014.