In April, the average price of Riga precast panel apartments per square metre increased for one euro as compared to March, so it was 569 euro. Unlike the typical trend of the recent couple of years, in fact, keeping the average price index invariable, the average price of Riga precast panel apartments has been climbing slightly for six months in row as of the end of last year and beginning of current year. Number of purchasing deals with apartments has also been growing gradually.

“The main reason for reiterative price rise in precast panel apartments is the shrinking supply of quality property meeting buyer’s demands and solvency. Currently, there are no other serious factors which would cause stronger demand in precast apartments and, consequently, surging prices of these properties. Volume of the granted mortgage loans keeps reducing, while solvency of local population is still very low. Nevertheless, following a pause for several years, again we encounter episodes when buyers compete to offer a higher price to the owner of a quality precast panel apartment. This is a proof of the limited supply of such properties,” explains Vija Gailite, Head of Latio Residential Brokerage Department.

Buyers of precast panel apartments seek to purchase apartments in a good condition so as to save on significant additional costs of renovation and improvements. However, there is shortage of such apartments hence the buyers purchase apartments requiring redecoration provided that those are found on good location with appropriate surrounding infrastructure, and the price thereof is adequate to quality and in line with the market situation.

When selecting an apartment, buyers pay great attention to maintenance costs of the apartment, quality of maintenance, and expenditures, as well as to the fact whether the land belongs to the apartment owners or it is rented.

Prices will ever vary among precast panel apartments of different quality in various parts of Riga – prices will be stable or will grow slightly for real estates in good condition, on good location, with land shares included in the composition of the property, and provided for quality maintenance service, whereas prices will go down for apartments requiring thorough renovation.

In April, prices of precast panel apartments in good technical condition in parts of Riga like Purvciems, Plavnieki, Zolitude, Imanta and Ziepniekkalns were as follows: EUR 23,000–29,000 for one-room apartments, EUR 31,000–40,000 000 for two-room apartments, EUR 35,000–47,000 000 for three-room apartments, EUR 41,000–51,000 000 for four-room apartments.