One of the reasons having triggered stronger activity of buyers was the end of summer drawing near when, typically, interest in purchase or rent of real estate resumes.

“Buyers face limited supply of certain real estate categories as much for housing in the city centre as for precast concrete blocks of flats in neighbourhoods. For instance, most buyers seek to purchase apartments in a condition good enough to move in at once without redecoration, in neighbourhoods. More frequently, buyers want apartments in buildings provided for good maintenance service, managed by a homeowner association, homeowners of the building being owners of the land under the building. However, there is an insufficient supply at appropriate prices, currently,” points out Mrs.Vija Gailite, Head of Latio Residential Brokerage Department.

She added that in Riga centre there was lack of quality apartments at a price not exceeding EUR 150,000 – 170,000. These properties are mainly sought for by foreign citizens who wish to obtain a temporary residence permit after real estate purchase. Currently, foreign citizens express quite a strong interest but the supply has not expanded essentially. Likewise, foreign interest is sustained in purchase of more expensive apartments in renovated buildings, in the centre of Riga.

Prices are on upward for apartments in the very Riga centre, whereas the average prices of precast apartments have been remaining steady for about two years, now. Prices of brand-new apartments in Riga centre, the Old Town and in the vicinity thereof, as well as apartments in thoroughly renovated buildings were 17% and 23.5% higher respectively in the 2nd quarter this year rather than the same period last year.

In its turn, the average price per square metre of precast apartments was 1% higher this August rather than a year ago in Riga, thus being fixed at EUR 582. There is difference in fluctuations of apartment prices. Prices go up slightly or retain the current rates for precast apartments in good condition, with land being a part of the owned property composition, being provided for good maintenance, whereas the prices decrease for apartments in bad condition or within shabby buildings.