Compared with the situation of the previous years when prices were climbing up quarterly for all segments of new apartments showing 10-15% jump a year, the price increase was insignificant for new apartments in the 2nd quarter this year.

In the Old Town and the nearby areas, the average price per square metre was 4,250 euro for apartments in the new developments and fully renovated buildings, in the 2nd quarter this year. It went up 2.4% as compared to the 2nd quarter 2013, yet there have been no changes against the 1st quarter this year.

In the 2nd quarter, the most rapid price rise continued in Riga centre where the average price per square metre has added 10.2% over a year for new apartments. In the 2nd quarter, the average price of new apartments was fixed at 2,700 euro per square metre in the city centre.

In other parts of Riga, the average price of new homes did not change in the second quarter as opposed to the first three-month period of this year, so it was fixed at 1,380 euro per square metre. It has added 4.5% against the same period a year ago.

“Both local and foreign buying demand for new apartments has been steady over the recent months therefore the prices have not changed remarkably. Aiming at getting a temporary residence permit, foreign buyers purchase apartments with their price hardly exceeding 150,000 – 200,000 euro, predominantly. Changes in demand are expected soon as the new amendments of Immigration Law will become effective in September, and the minimum amount of investments in real estate will be increased to be fixed at 250,000 euro,” explains Evija Segleniece, Development Project Sales Manager at Latio.

In the face of the changing demand and growing rental market, construction of new tenement houses may have good prospects as a niche. “Developers have launched several new housing developments where – after completion thereof – a part of the apartments are planned to be sold while others are planned to be offered on the rental market. However, construction of new tenement houses has not been observed as a trend, currently,” indicates the expert of Latio.

Recently, the local buyers have become more active on the new housing market. Due to economic considerations, some prefer unfinished new homes with a view to finish the dwelling later on their own, points out E.Segleniece. The buyers are willing to pay up to 1,000 per square metre for apartments with unfinished decoration, and up to 1,200 euro per square metre for fully finished apartments.

There is quite wide price range for transactions with new apartments. It depends on location of the development, stage of completion inside the apartment, and other factors. In June, the average price was fixed at 700–900 euro per square metre for new apartments close to Riga; 900–1,850 euro per square metre in Riga neighbourhoods; 1,500–3,500 euro per square metre in Riga centre (including more remote centre areas). In prestigious areas of the city centre, the price of apartments in quality renovated buildings reach 4,000–6,000 euro per square metre. The asked prices may approach 9,000 euro per square metre in new luxury developments.