The number of apartment transactions in the first ten months is up 19.7%, the number of private house transactions – up 24.1%, according to analysis of the Land Register data gathered by Latio.

There were 865 apartment purchase transactions in Riga in October, the highest number since the beginning of the real estate market decline in 2007. With the number of apartment transactions increasing, the proportion of new apartments does not change significantly – each month it is within 10–15% of all apartment transactions in the capital city.

“Stable increase in the number of transactions for more than the past two years reflects the increase of buyers’ activity in all housing segments. However, in the largest segment – in the standard apartment market – in spite of the growing number of transactions, the average apartment price level remains almost unchanged. On one hand, it can be explained with gradual increase of the overall offer of apartments, mainly ensured by companies associated with banks;on the other hand, faster price growth is limited by the buyers’ purchasing ability and the still low lending amounts. In general, faster increase in mortgage growth could be expected after complete sale of the homes that have become property of banks,” explains Head Of Valuation department Diāna Štāle.

With slight upward or downward fluctuations each month, the price level of standard apartments in Riga has remained close to 600 euros per square meter for more than two years. In 2013, the average price per square meter slightly increased, however in October it declined from the previous month for the first time this year, dropping to 599 euros.

A total of almost 8,200 housing purchase transactions have taken place in Riga in the first ten months of the year. Apartment transactions comprise approximately 90%, while the rest are private house transactions.