“There is an increasingly growing interest of people both in the new developments just entering the market and the brand – new apartments offered by bank daughter companies. The latter ones capture interest of buyers due to their price being adequate to quality thereof and the market situation, i.e., the price is not put unreasonably. On the whole, this demand is not that strong to trigger price boom for bank-repossessed and other brand-new apartments,” clarifies Vija Gailite, Head of Latio Residential Property Brokerage Department.

The average price of brand-new apartments was EUR 1,170 per sq m in Riga neighbourhoods in the 2nd quarter this year. It has added 0.9% as compared to the 1st quarter this year. As opposed to the 2nd quarter of the last year, the average price of brand-new apartments has increased 1.8% in Riga neighbourhoods, while it was 15.4% higher as put against the 2nd quarter of 2010.

Since there is less supply of apartments meeting demands of foreign buyers, prices of brand-new apartments go up faster in Riga centre. The average price of brand–new apartments (including thoroughly renovated buildings) was EUR 2,150 per sq m in the 2nd quarter of 2012, i.e., 6.2% above the price as of the first three months this year;17% and 19.3% above the price as of the 2nd quarter of 2011 and 2010, respectively.

In the Old Town and its surroundings, the average price of brand-new apartments (including thoroughly renovated buildings) was EUR 3,690 per sq m in the 2nd quarter this year. It made 4.6% more as compared to the first three months this year, and 23.5% and 50.5% above the average price of the 2nd quarter of 2011 and 2010, respectively.

In Riga, amount of transactions closed for apartments grows increasingly. The Land Registry data analysis conducted by Latio revealed that amount of apartment sale transactions approached nearly 3,000 in the capital city over the recent five months so it increased 38.5% as compared to January through May 2011. Brand-new apartments account for about 10% out of total number of transactions in Riga, monthly. The largest share among the brand-new apartment transactions in Riga centre is formed by foreign buyers, while domestic buyers prevail in neighbourhoods.