“Because during the past two or three years there has been an increase in demand for purchasing high-quality apartments in the center of Riga, and there is stable demand for renting such apartments, developers and investors are becoming increasingly interested in unfinished apartment buildings and residential buildings that require renovation. While previously, after the completion or renovation of such projects, the apartments in them were generally offered up for purchase, in the near future several rental buildings will be established in the center of Riga where all apartments will be made available for rent,” explains Aldis Riekstiņš, Head of Brokerage Department.

Demand in the center of Riga is generated by both foreigners and local residents, and the biggest interest of tenants is attracted by high-quality, furnished one-, two- and three-room apartments with amenities and area up to 80 square meters at a price of 450–600 euros per month, excluding utilities, shows the Latio housing market overview.

There remains stable demand of buyers for good apartments in new or fully renovated buildings in the center of Riga. It has also stimulated a price increase of such apartments. For example, the average price of new apartments in the center of Riga, including apartments in fully renovated buildings, in Q1 2013 was 18.5% higher than a year ago and reached 2400 euros per square meter, while in Old Riga and its vicinity the average price was 16.2% higher, reaching 4100 euros. A large part of the demand is generated by foreign buyers, who are mainly seeking apartments at a price of 150,000–180,000 euros.

The average price of new apartments in the residential neighborhoods of Riga in Q1 2013 was 1294 euros per square meter, exceeding the average price of the first three months of last year by 11.6%.