2008
Although the prices are still falling, however the
pace of such fall in price is already decreasing. The price of apartments in
block-buildings in February decreased by another 1.5%, stopping at EUR 1394 per
square metre, showing that the pace of fall in price remains at the same level
as in January and it can be expected that the fall in price for apartments in
block-buildings might stop in the coming months.
An increase in activity of population can be
observed both in the apartment sales and rent markets where the potential
buyers and lessors have started to show their interest, which is evidenced by
the fact that the number of apartments viewed by the buyers in February has
doubled. Moreover, the number of lease transactions through the company “Balsts”
has increased substantially.
“Of course, the number of transactions is not
as high as it used to be, but the activity in the market is becoming noteworthy;
and it is proof that the market is still alive, since the demand for housing is
still very high, and for most buyers there is only one reason for delaying this
decision – restrictions on receiving a loan”, explains Aigars Zariņš.
The apartment owners that are not ready to
decrease the price even more, are more often choosing to rent out the apartment.
This is also one of the reasons while the supply in the lease market has increased
since the beginning of the year, while demand has remained unchanged. The
lessors have become more picky, and prior to making the final decision, choose
to look at more apartments than before. The rent has remained at the same level
and it proves that the lease market is stabilising and increase in price is not
to be expected anytime soon. The demand in new development projects is
increasing.
In the lease sector the prices have remained
stable since the beginning of the year. The supply of spaces to lease in new
objects is increasing, since construction of several new logistics projects has
been started this year. The lessors prefer to choose from a wider range and
therefore significant increase in prices for rent is not expected. The time
period used by clients for deciding on lease of larger areas has increased.
“The government should consider cancellation of
the anti-inflation plan or at least amendments to it. The amendments required
most of all would be incentives for purchase of primary housing and for new
families – these categories of residents should be released from down payment. The
government has achieved its goal by creating a psychological barrier. People
lately are more often refraining now from larger purchases, since the cost of
living that continues to increase makes them think twice about the necessity of
the large purchase they are planning - be it real estate, a car, or something
else. The prices have not dropped dramatically for this market to become
interesting for resellers. Cancellation of the plan or amendments to it would
definitely give a surge to the real estate market and allow the end-consumers
to improve the quality of their life, drawing closer to the European level”,
says Aigars Zariņš, Chairman of the Board of SIA “Balsts”.
Address your questions to:
Evita Strazdiņa
Marketing Manager
____________________
SIA Balsts
LV-1010,
Phone: +371 7212276
Mob: +371 29488824
Fax: +371 7214164
E-mail: evita.strazdina@balsts.lv
www.balsts.lv
