In May as opposed to April, the average price per square metre of prefabricated apartments increased EUR 1 and was fixed at EUR 625. The increase observed in the average price per square metre has been from EUR 5 to EUR 7 per month earlier this year. The average price per square metre of prefabricated apartments in Riga is 4.5% higher in comparison with May 2013 and 3.1% higher if compared to this year’s January.

“Moderate increase in apartment prices in May was due to both lower buying activity as the summer weather set in and the more rapid increase in prices over the previous months. Purchasing power of the buyers of prefabricated apartments corresponds to the level achieved in housing prices, therefore property seekers are reluctant to consider the offers at higher prices. Although the supply of good quality prefabricated apartments is still limited, prospective buyers are not willing to pay the inadequate price, so transactions do not take place. Buyers continue their search for suitable standard apartments, and families with higher financial capacity choose apartments in the new developments,” explains Mrs.Vija Gailite, Head of Latio Housing Brokerage Department.

Apartment prices change unequally in different parts of the capital city depending on the type of the multi-residential building. In May, prices of prefabricated apartments in good technical condition in parts of Riga like Purvciems, Plavnieki, Zolitude, Imanta and Ziepniekkalns were as follows: EUR 25,000–32,000 for one-room apartments, EUR 32,000–42,000 for two-room apartments, EUR 37,000–49,000 for three-room apartments and EUR 43,000–55,000 for four-room apartments.

The supply of brand new apartments continues to grow. According to the information gathered by Latio, more than 40 new multi-residential buildings, private house villages and terraced house developments will be put in service in Riga and its vicinity from 2014 to 2016. This will increase the estimated total supply by more than 1,000 units.

The interest of the local residents in the new developments is mainly focused on apartments at a price of up to EUR 100,000.