Prices increased by 3.5% in Riga in April, slightly more than in previous forecasts, and fewer properties are being offered for sale.
There were 3.5% price increases for standard-type apartments in Riga in April 2010. The highest month on month increase (of 5.1%) was in Zolitude, and the lowest, at 1.3% was in Bolderaja. The average price of standard-type apartment in April was priced at 592 EUR/m². Since the beginning of 2010, the price of standard-type apartments prices has increased on average by 13.6%.
In recent months, Riga standard-type apartments have increasingly been sold at prices higher then average market values, because of a lack of properties for sale in some areas, such as Zolitude and Bolderaja, where the number of offers-for-sale are minimal. The potential buyer has to take into consideration that probably he would be have to pay more for the apartment, than for a similar apartment in another area in a similar location.
In the housing estates reviewed by Arco Real Estate in April:
- the average price of a 1 room apartment was 659 EUR/m². This price increased 4.77% compared to the previous month.
- the average price of a 2 room standard-type apartment was 612 EUR /m², up 4.26% compared to the previous month
- the average price of a 3 room standard-type apartment was 572 EUR/m², up 5.15% compared to the previous month
- the average price of a 4 room standard-type apartment was 555 EUR/m², up 5.11%. compared to the previous month
“April’s price increase of 3.5% was higher than previous forecasts by about 2-3%,” says Maris Laukalejs, Arco Real Estate board member and head of appraisal department: “It is mainly explainable by increased interest in buying apartments, and the insignificant increase in proposals in recent months, or rather, the constant number of proposals. The insignificant number of proposals suggests that potential sellers are unwilling to sell their property at current market prices, and that, in turn, is explainable by forecasts of price increase in the future."