There is a small selection of premium apartments in Riga
In the center of Riga, in the active center and in the quiet center popular with buyers of premium properties, there is a noticeable lack of a good offer: there is a small selection of good quality apartments in new projects and renovated houses, according to the data collected by the premium segment real estate company Latvia Sotheby’s International Realty.
The majority of the “pie” of the Latvian premium property market is traditionally occupied by purchases of high-class apartments: they accounted for 82% of the total turnover in this half-year. A total of 339 premium apartments worth 82 million euros were purchased this year in the period from January to June, according to the research conducted by the premium segment real estate company Latvia Sotheby’s International Realty on transaction activity in Riga, Jūrmala and Pierīga. In the area of premium apartment transactions, this is 24.5 million euros, or 42.7% more turnover than last year, when 257 premium apartment transactions for 57.5 million euros took place in the corresponding time period. The influx of investments affected all three regions of the report. Numerically, the largest increase can be observed in the capital, but the growth was faster in Pierīga and Jūrmala. The Riga premium apartment market has shown the fastest growth since 2014: turnover of 61.5 million euros (15.1 million euros or 32.6% increase compared to the corresponding period of the previous year). The total was made up of 254 apartment transactions, which is 40 more than in the first half of last year. Contrary to the trend of recent years, the average value of an apartment in the first half of this year has increased by 25,500 euros, or by 11.8% compared to the corresponding period in 2020, reaching 242,000 euros. The average size of the purchased apartment still remains around 120 m2, so the price per square meter has increased by 200 euros to 2160 euros this half year. A more detailed analysis reveals that the rise in both square meter and transaction prices was due to significantly greater interest in Riga’s most sophisticated apartments. In the first half of 2021, turnover in the segment of apartments worth 300,000-500,000 euros almost doubled compared to the beginning of the previous year: apartments in this price group were purchased for a total of 12.8 million. euro. On the other hand, in the market segment of the most exclusive Riga apartments, 14 transactions for 9.1 million euros were made during the half year, which was 5 million euros more than in the first six months of the previous year.
“At the moment, it is still too early to consider the average increase in the value of an apartment as a change of trend in the Riga premium apartment market. Analyzing the data over a longer period of time, it can be concluded that the prices in all segments of Riga premium apartments have risen several times over the past seven years, however, these periods of decline are unstable. This suggests assume that the increase in the average value of such apartments may not be maintained in the center of Riga, the active center and the quiet center favored by premium property buyers: there is a small selection of good quality apartments in new projects and renovated houses three-room apartments with an average area of up to 80 m2, as well as four-room apartments with an area of 95–110 m2 with a parking space. – good quality apartments in a good location.Two-room apartments are also popular, which are bought by families who choose to start living in the center. Studio apartments, which were previously bought as investment properties for renting out, mainly for short-term rent, have become less popular. There are also customers looking for five-room (four-bedroom) apartments, with very high quality repair and decoration, parking space, elevator and balcony. Such customers are ready to pay for an apartment starting from half a million euros, but unfortunately there is actually no such offer in the center of Riga,” comments Aigars Strods, senior sales consultant of Latvia Sotheby’s International Realty, on the situation.
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