the year 2011, the main real
estate market’s controller - price of standard-type
apartments - experienced a
significant decline - 7.3% and in the end of the year
"Commercial segment in
2011 for a short time was in the stagnation phase, but
during the year it has returned to a slow growth. This is
evidenced by such indicators as the A and
B class office building in Riga within the
fill of 75-80%. Remaining areas are offered for
a 10 - 15% higher rent. There are only a
few office buildings that can meet the demand
for areas above 3000 m2. Treade areas in center of
Riga have been applied in active places with
high pedestrian flow. In such places rent ranges
In rental market in 2011 is observed a price increase, which can be explained by lack of supply. Mainly there is observed the lack of qualitative apartments with the most demanded area - 2 to 3 bedroom apartments. Banking subsidiaries now have taken over many apartments that are not yet available in the market, people who owned the apartments, has successfully rented them. Because of the low income level many banks do not grant loans, so people choose to live in a rented places. In a result of all these events demand has grown considerably, while supply has decreased, and in 2011 the rental prices have risen by 8%, "says Mr. Aigars Zarins.
"We cannot predict a significant price changes in 2012. Year will be "flat", with no significant fluctuations and the maximum price increase in the real estate market, which can be achieved in some segments in the next 12 months is 5%. Of course, we expect that a customer activity will increase, but there will not be the real result of this, because in the country there is still the situation that the banks grants loans, but because of the low solvency only a small part of latvians can get them. The largest demand in Latvian real estate market currently is based on foreigners, mostly residents of the former CIS countries. Foreign investors choose to invest in good quality and beneficial properties, therefore, in the 2012 we forecast a customer activity and a property price increase in the center of Riga. Apartments in the center are the most successful investment opportunity because, unlike in Jurmala, where now prices are too high and do not reflect the real market situation, properties’ price in the center of Riga are adequate for the current situation and in the future these properties may also bring a profit, because they can be successfully rented, and as it was mentioned, now in the rental market is a lack of qualitative apartments, demand considerably exceeds supply. In Jurmala growth can not be predicted. Eastern investors, who make a major demand is well informed about the economic situation in the Latvia and are not willing to overpay for real estate. As already mentioned, in Jurmala prices are exaggerated, potential buyers understand that, so in 2012 they will be more interested in the center of Riga.
At the end of 2011 BALSTS index was 125, in the beginning of January it is 126, and we expect that at the end of 2012 it may reach 130 point scale, "predicts Mr. Aigars Zarins.
More information you will get:
BALSTS, Audēju Street 8,