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Monday 20.08.2018 | Name days: Bernhards, Boriss

Housing prices drop 0.7% since early 2011

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In February 2011, prices of serial apartments fell 0.2%. This year in February, the average price of serial apartments amounted to 605 euro/m2.

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUPrice surge stopped in October and November 2010, so during the past three months prices have come down slightly.

While, overall in the first two months of 2011, prices decreased by 0.7%, according to the company Arco Real Estate data.

In late 2010 and January 2011, the overall activity in the real estate market declined. At the moment, at the moment there are minimal price fluctuations in the serial apartment market. Apartment vendors have taken a wait-and-see policy and are reluctant to reduce prices, suggesting that at least now prices are stable.

Disproportionally low offers often appear and find buyers quickly. Such apartments are usually sold due to the owner’s financial problems or the necessity to leave the country. In February, similarly to January, the supply has grown at Riga’s largest suburbs – by 9.8%, while overall in Riga – by 10.8%, returning to the levels of autumn 2010. Also, potential buyers are looking for and choosing a property with no rush, because the constant price level allows considering different options more carefully. The biggest price reduction in February was recorded in Kengarags (-1.1%) and Jugla (-1.1%). While the smallest price drop was observed in Plavnieki and Teika (-0.2%).

In February, no price fluctuations have been registered in Mezciems and Zolitude. Since the low point in September 2009, apartment prices have risen by 24.2% on average.

Since the beginning of 2011, the average price of a square meter in serial apartments has edged down 0.7%. The largest price fall was observed in Zolitude, amounting to -4%. While this year, prices in Jugla have remained unchanged.

In February 2011, prices of apartments in suburbs were at the level of April 2009 and July 2010. Since the low point in September 2009, they have surged 24.2%.

Aaverage prices of serial apartments dropped to 605 euro/m2 in February. On average, prices were 62.7% lower than on July 1, 2007, when the average price of non-renovated serial apartment hit record-high – 1.620 euro/m2. However, compared to January 1, 2010, the average price of non-renovated serial apartment has grown by 16.1%.

In 2008, the average price of serial apartments in Riga dropped by 33.5% on average. While, in 2009, prices fell further by 44.2%. But in 2010, they gained 16.9% on average.

In February 2011, the average price of one-bedroom apartment in Riga suburbs was 644 euro/m2, and compared to the prices in the previous months, it has dropped 0.8%. The average price of two-room serial apartment was 613 euro/m2, and compared to the previous months, it has decreased by 0.3%. While the average price of three-room apartment accounted for 584 euro/m2, and compared to the previous months, it has remained flat; while the average price of four-room apartment – 578 euro/m2 – has soared 0.5%.

Upon summarizing the supply, in February the bulk of offers was recorded in Purvciems, Plavnieki, Imanta and Kengarags. By contrast, the smallest number of offers was observed in Bolderaja and Zolitude. Supply grew in major Riga suburbs in February. Teika reported the largest increase in supply– by 22.4%. In Riga suburbs the most demanded apartments were one-room and two bedroom flats. Buyers were least interested in four-bedroom apartments.

In February 2011, the average price per square meter in Mezciems and Zolitude remained flat. Prices increased slightly in Plavnieki, Imanta and Ilguciems. In most Riga suburbs the average price per square meter plummeted by 0.3 – 1.1%. Jugla and Kengarags reported the biggest price drops in February, as prices fell 1.1% on average.

Compared to early 2009, in February 2011 serial apartment prices in Riga suburbs were 35.1% lower. Since early 2010, prices rose on average by 16.1%. In the first two months of 2011 prices slipped down 0.7%. Since the low point in September 2009, when the average value of square meter at Riga suburbs fell to 487 euro, prices have climbed on average by 24.2%.

In February 2011, Teika still reported the highest prices with an average one per square meter dropping slightly down to 720 euro, followed by Zolitude with the average price of 665 euro. While the lowest average price per square metre was registered in Bolderaja – 504 euro.

119 series 104 series residential buildings still offered the most expensive apartments, with the price of two-bedroom flats ranging from 32 – 40 thousand euro depending on the location. But the cheapest ones were Lithuanian design houses with prices of two-bedroom apartments hovering around 23 – 29 thousand euro; as well as Khrushchev era houses with the price of two-room apartments ranging from 21 – 29 thousand euro depending on the suburb.

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  1. Tom says:

    Silent center with its most expensive apartments is not of that great quality after all.

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