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Monday 18.06.2018 | Name days: Madis, Alberts
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Standard type apartments' price reduced since the “bubble” era

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Author: Andrejs Baburovs/LETACurrent standard apartment prices in Riga are nearly 65% lower than there were during the so-called “real estate bubble” era of 2007.

Most (80%) of the housing transactions in Riga are carried out in the standard apartment market. Their total number is growing, but the price level has been the same for more than two years, as said by experts of Lanida real estate association.

Experts no longer see any possibilities for changes in prices of standard apartments. This is also shown by the fact that the volume of issued credits continues to decline. Compared to the same period last year, the total volume of housing credits issued by Latvian credit institutions is still considered not active enough to influence demand and the general price rise.

“There is definitely no reason to talk about any upcoming “bubble” in the real estate market. In order for people to express interest, the price increase should be 3.5% above the inflation level. The prices of standard apartments in the last couple of years have been increasing so little, that they barely reach the level of inflation. Given the technical condition of the buildings from the Soviet era, as well as the steep renovation process, we can conclude that there is a process opposite to the “bubble” currently going on in the segment. And that property is currently in the value reducing zone”, – Lanida and Latio Chairman Edgars Sins comments the situation in the real estate market.

Even though there is a high portion of foreign investors’ activity in the city centre and Old Riga, there are no intensive renovation and construction work going on. New projects are gradually entering the market, so there is still a deficit noted in the market.

According to data compiled by experts, transactions in Riga’s quiet centre for new or reconstructed buildings forms a mere few percent from the total number of transactions in the capital. Last year, there was a price increase in this segment – 15% for new or renovated buildings in the centre of Riga, while that of micro-districts, where the activity of foreign investors is not high, the average prices had increased by only 6%.

Ref: 102.109.109.7161


Leave a reply

  1. Roman says:

    The flats in Riga are too expensive .The same objects in Sofia and Bucharest are twice cheaper for the same standart of living.So if some Lavian have money to waste…

  2. Hectors says:

    Reverta is selling soviet era flats for 250 euro square meter in Boldera ,Vecmilgravis ,Plavnieki and Purviem .So do not pay more than the price.

  3. JPR says:

    I will buy great deals. Mail me.

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