The demand for premium private houses in Pieriga has increased
With the desire to expand one’s living space and improve comfort conditions, the demand for premium private houses in the first half of this year has been the highest in the last five years, according to a study conducted by the premium segment real estate company Latvia Sotheby’s International Realty . In Riga, Pierīga and Jūrmala this year, 26 premium private houses were bought for 14.6 million. worth of euros. In Jurmala, less exclusive houses were bought, which can be explained by their small offer, but in Riga, turnover increased impressively – by 73%. The company’s research on transaction activity in the first six months of 2021 in the three examined regions examined information on private houses that cost more than 350,000 euros. In the first half of this year, the private house market accounted for 14.7% of the total Latvian premium real estate market. It has already been reported that a total of 376 properties (high-class apartments, private houses and building plots) were purchased in Riga, Pierīga and Jūrmala this half-year for a total of 99.5 million. euro. Although the number of premium houses purchased this year (26) is the largest in the last five years and surpasses the volume of 20 houses purchased in six months last year, when the turnover is expressed in terms of euros, it can be seen that these 26 houses were purchased for 3.7 million. euro cheaper, or the turnover was 20.3% lower than in the first half of last year, when the turnover reached 18.4 million. euro. The total turnover data was influenced by developments in the largest premium private housing region – Jurmala, incl. limited offer in the resort town. Recently, the demand for premium private houses in Pieriga has grown noticeably, with the desire to expand one’s living space. “People are particularly interested in houses in Jūrmala, as well as in neighborhoods such as Mārupe, Bieriņi, Bergi, Carnikava, etc., in places that are up to 20-30 km from the center of Riga. People evaluate how high-quality and comfortable the current housing is, how spacious the residence is. If you have to spend a longer time in a limited living environment, where you both live and work, customers start thinking about expanding it precisely for reasons of comfort, especially if there are children in the family outside the city, now it’s the other way around,” comments Latvia Sotheby’s International Realty representative Līga Kohtanena. It can be observed that customers are looking for houses with an area of 150 to a maximum of 350 m2, unfortunately the supply of new quality houses is very small. There is actually no new, high-quality and high-quality housing stock in Jūrmala, so it can be said that the seller can dictate his price, which is not always in line with the market. It is currently a seller’s market. On the other hand, in the secondary market, where ten or more year old houses that need repair are available, the offer is wider and the competition is also greater. However, the buyer is not always ready to invest additional funds in long-term repairs, so he prefers to pay more and find a house in which he can start living immediately. The surrounding infrastructure (condition of roads, etc.) is no less important in choosing a house, especially in the last year, customers value fast and good internet connection, because they also work at home.
Riga’s premium housing market has traditionally been the smallest, and this half-year was no exception. Seven private house transactions were concluded in the capital in these six months for a total amount of 3.3 million. euro. This is impressive – a 73.2% increase in turnover compared to the corresponding period of the previous year by 1.9 million. EUR for the three houses sold, and in terms of the amount also surpasses what was achieved in five years, when the turnover in the capital was usually between 1.3 and almost 2 million. in the amount of euros.
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