49% dicrease: results of the 1st quarter of 2015 on the primary real estate market in Riga

May 25, 2015

49% dicrease: results of the 1st quarter of 2015 on the primary real estate market in Riga

The average price per square meter in new residential districts of Riga in the first quarter of 2015 decreased per € 50 compared with the end of last year, and amounted to € 1 410 EUR (- 3,4%), and in the central districts dropped to € 2510 / m² decreasing per € 40 EUR / m², or 1.6%.

Reducing the average price still does not speak about the general prices decrease, but it shows the change in the structure of the transaction: as a trend - increasing the number of transactions with cheaper apartments. For example, the number of sales of apartments in the residential districts of Riga in a price range from € 600 to € 800 / m² in the first quarter of this year increased per 37.5%.

The total number of transactions in new projects in residential and central dictricts has decreased by almost half (49%) compared to the same period last year.

In residential areas, where two-bedroom apartments have become the most popular object of purchase in the first quarter of this year, the majority of transactions took place in the price range from € 1000 to € 1400/sqm, while in the city center, dominated by the demand for two- and three-room apartments, most transactions took place in the price range from € 1800 to € 2200 / sqm.

The total amount of the deal has also changed: the number of sales in the range of € 30 000 to € 50 000 has grown over 65%. But in the price range from € 50 000 to € 120 000, which prevailed last year, decreased by 54%.

With regard to transactions on € 250,000 euros (this is the minimum threshold for obtaining a temporary residence permit) in the first quarter of this year, it took place only four deals, which is 75% less than in the fourth quarter of 2014, and 85% less than in the third.

Based on the information of baltic-course.com