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Tuesday 23.05.2017 | Name days: Leontīne, Ligija, Lonija, Leokādija
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Balsts: real estate market requires foreign investments

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU«All indexes show that real estate market development has to continue in 2017. But if favourable conditions are not created for businesses, development of small businesses and attraction of foreign investments, expected growth may turn into stagnation,» – says Balsts chairman Aigars Zarins.

The company predicts that this year’s average price rise will continue. It is not expected, however, to exceed 6% to 7%.

The number of real estate transactions last year, when compared with 2015, had grown 10.5%. Mortgage loan volume had increased. Nearly every third purchase was performed using state support programme Altum for young families with children. Standard apartment average prices had grown by 6.5% in 2016. Increase can be explained with significant decline in apartment offers. Balsts index has grown by 11 points in 2016.

Local demand activity can best be described by the new apartment projects segment, in which local buyers’ activity has grown by 42%. There had been 120-130 transactions a month in Riga. Prices for new project apartments vary between EUR 1,000 and EUR 1,750 per 1 m2 in Riga’s surrounding areas and between EUR 1,450 and EUR 3,800 in the centre. Clients most often expressed interest for two to three-room apartments with full furnishings, the company states.

«Last year, demand for secondary housing rent market was also actively in demand. People looking for work and starting studies coming from regions to Riga most often decide to rent housing. Demand for quality rent offers exceeds supply. This allows keeping rent rates on the current level. We expect prices will rise within 5% – 7%,» – Balsts representatives say.

Demand for office space was stable in 2016. Because of that, rent price level has remained unchanged. The company predicts that rent prices will not grow more in 2017. In some segments prices may even decline.

Demand was the highest in 2016 for small and medium-sized B-class offices with an area of 30 – 100 m2 in the city centre and rent pay of up to EUR 8 per 1 m2.

Ref: 224.109.109.1592


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