There has been an increase in the number of new projects in Riga in the past two years. Vilnius remains in the lead in terms of new project construction. Vilnius is the place where the most significant projects apartment number-wise are realized. Riga is on the second place in this regard. These and other differences have been uncovered in the development outlook for new projects in Baltic capitals performed by DNB and Ober-Haus.
5.1 fully finished apartments in new projects have appeared in Riga per 1,000 residents since the beginning of 2015, which is 2 apartments more when compared with 2013-2014. 8.6 completed apartments have been available in Tallinn since 2015 (4.7 more when compared with 2013-2014). 13.4 finished apartments have appeared in Vilnius.
Riga and Tallinn have experienced the largest increase in the number of new apartment complexes in the past two years. Vilnius remains in the lead, however.
«If we look at history, all Baltic capitals had experienced an increase of new projects before 2007. The number of projects had declined since 2008, reaching the lowest point during the crisis – in 2010. In spite of the fact that all cities had begun experiencing a rise in the number of new projects, Vilnius had managed to stay in the lead,» – comments DNB board member Anita Berzina. She mentioned another curious observation – the current number of apartment projects in Riga remains on the level of 2003. That of Tallinn is on the level of 20014 and that of Vilnius – on the level of 2005. Nevertheless, 2016 is not over yet.
Vilnius has two times more apartments in new projects than Tallinn. Riga is somewhere in the middle. The average number of apartments in new project buildings in Tallinn is 44 (56 in Riga and 81 Vilnius). Tallinn does have more spacious apartments than Vilnius (average indexes suggest 67 m2 and 54 m2 respectively). Riga’s situation is similar to that of Tallinn.
The number of apartments bought in Vilnius in 2014-2015 is 33% of all apartments bought in that period of time. The proportion in Tallinn is significantly lower – 19%. Riga’s proportion is 14%. This shows that Latvia’s market remains dominated by standard-type apartments.
«In the first ten months of 2016, DNB Bank most often signed loan contracts for the procurement of standard-type apartments. This segment remained topical for half mortgage loan recipients. In a quarter of all cases, mortgage loan contracts were signed with the purpose of buying a private home. Every fifth deal was signed for the procurement of apartments in new projects,» – Berzina said.
It is also interesting to note that average wage growth in Riga progresses more rapidly than apartment prices. The situation in Tallinn is exactly the opposite. Both indexes develop equally in Vilnius.