ARCO REAL ESTATE

 

     In April 2010 in general there remained the price increase for the standard-type apartments in Riga that was 3,5% during the reporting period. The average price of standard-type apartment in April 2010 achieved the level of 592 EUR/m². The highest increase of 5,1% during the last month was observed in Zolitūde, but the lowest in amount of 1,3% was observed in  Bolderāja. In comparison with the beginning of 2010, the standard-type apartments prices by this moment increased on average for 13,6%.

 

     In last months time the standard-type apartments are more and more often being sold by the prices that are higher then the average market value. It is explainable with the fact that there are no enough appropriate proposals in the market in some housing estates of Riga, such as Zolitūde and Bolderāja, where the number of offers is completely minimal. Wherewithal the potential buyer has to take into consideration that probably he would be have to pay for the apartment more then for equal apartment in another housing estate with equal location.

 

     In the housing estates reviewed by Arco Real Estate in April, the average price of a 1 room apartment was 659 EUR/m² and this price, comparing with the previous month prices, has increased by 4,77%; the average price of a 2 room standard-type apartment was 612 EUR /m² and this price, comparing with the previous month, has increased by 4.26%; the average price of a 3 room standard-type apartment was 572 EUR/m² and this price, compared with the previous month, has increased by 5.15%; and the average price of a 4 room standard-type apartment was 555 EUR/m² and this price, comparing with the previous month, has increased by 5.11%.

 

“The price increase of 3.5% in April is slightly higher than previous forecasts in amount of 2-3% per month. It is mainly explainable with the increased interest to the buying of apartments and just insignificant increase in proposals in recent months that could rather be considered as the constant number of proposals.  The insignificant number of proposals in some way shows the unwillingness of potential sellers to sell their property at current market prices that in its turn is explainable with the forecasts of price increase in the future."