The average price growth of commercial flats in Riga has remained small but steady in August. The average price reaches 582 euros per square meter.
Since the prices began to increase, a small but steady growth can be observed every month and during the year the average price of standard apartments has grown by 18.8%, according to Latio market report data.
The average price of commercial properties has grown by 0.5% or 3 euros, as compared with July from 579 to 582 euros per square meter. The same price increase was recorded in July, whereas in June a square meter average price of commercial flats had risen by one euro.
«Housing price increase appears small and unusual, when compared to the situation four or five years ago. However, we have to remember that such sharp rise in prices, such heights of prices as then real estate market is not to experience any more in near future. 10% price increase a month was considered normal previously, yet at the moment it seems significant on annual basis. Therefore, the small – 0.5% or 1% – rise in apartment prices a month has to be evaluated positively, because it means that the market no longer falls and activity is gradually restored,» explains Latio market analyst Maris Grinbergs (Māris Grīnbergs).
During the year the average price of a standard apartment has increased by 18.8%, it was 490 euros per square meter in August 2009. The lowest point of commercial flats price was reached last summer; however the increase resumed in September reaching 500 euros per square meter.
Prices were still about 66% lower in August of this year, as compared with the average price peak of commercial flats in April 2007 – 1720 euros per square meter.
Most buyers are interested in good condition apartments, where it is possible to live without any significant improvements.
The amount of deals where more than two property sellers and buyers are involved grew in August.
Separate ownership and management of utility debt problems are often resolved in such transactions or transaction chains, where the participants, buying and selling, change housings from larger to smaller and vice versa.
In August the average price changes of different series of apartments in Riga microdistricts were different. In all residential districts along commercial apartments price rise or invariability (an average by 1%-4%), there was also a small decrease in price of commercial flats (on average by 1%-3%).