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The average price of standard-type apartments has increased by 0.7% in March 2012. Thus, the average standard-type apartment price is 592 EUR/m² now.
The first three months of this year have demonstrated a positive feature in the standard-type apartment market
The average price of standard-type apartments has increased by 0.7% in March 2012. Thus, the average standard-type apartment price is 592 EUR/m² now.
In the first quarter of 2012, standard-type apartment prices have increased by 1.6%. In the near future greater price volatility than at present is not expected. Many potential buyers still opt for house to rent, not purchase. In many cases, this is caused by lack of sense of stability, uncertainty about future income and increase of expenditures. At the same time, in the event of growing demand and rental prices, purchase of apartment quite soon might able to once again become popular. Already now, in many housing district, purchase of apartment makes more sense than renting it, because in the case of a loan, the monthly payment is less than the rent. Of course, provided that the person concerned has money enoght to pay the first installment when purchasing an apartment on credit.
Currently, no signs of rapid development have been observed in the real estate market, so the possible price growth can be slow and gradual.
The largest average price increase of 1 m² in the first quarter of 2012 was observed at Jugla – +2.8%. The smallest increase in the first months of the year was observed at Bolderāja - +0.5%. This is explained by the fact that also in 2012 the demand is mainly focused on good quality apartments with good location and placement. Thus, the price increase is less in the housing estates which are distant from the city center and where the prices are lower.
Number of apartments offered for sale in March 2012, compared with the level of the previous month, has increased both in the largest housing estates analyzed by the ARCO REAL ESTATE (4.8%) and in the Riga City in general (6.8%). The number of apartments offered and located in the central part of Riga has increased by 11.5%.
Mr. Māris Laukalējs, Member of the Board of Directors of ARCO REAL ESTATE, Head of the 1st Valuation Department: "The first three months of this year have demonstrated a positive feature in the standard-type apartment market - a small price increase has been observed in all the three months, which has resulted in an overall increase by 1.6% in the 1st quarter of 2012. It is uncharacteristic for the first months of a year and is due mainly to the relatively long depressing situation last year when prices of standard-type apartments showed a slight downward trend, or remained unchanged for few months. In the spring months of previous years (April - June), there was generally observed increase in prices, therefore, in the 2nd quarter of this year, we anticipate a slight increase - a total of 1-2% in Q2, or over 600 EUR/m². The forecast of ARCO REAL ESTATE for 2012 in relation to prices of standard-type apartments anticipates an overall increase by 5-8%".
16.04.2012.