BALSTS: September 2015! PRICES FOR NEW PROJECTS APARTMENTS DECREASED BY 9%!
In September average apartment prices increased by 0.62%. This month the BALSTS index increased by one point and reached 154 points. There were apartment price increases from 0.06 -0.61% in most of the secondary market, as well as in the center. Minimal price decreases from 0.07-0.57 % were observed in Jugla and new projects. The number of transactions compared to August increased by 12 %. Transaction growth is a positive market trend which reflects an adjustment in the current situation where the market is focused on the local buyer. But the limited financing options and new restrictions for residence permits issue continue to affect market situation. The next months will show if the increased number of transactions remains as a positive trend.
Activity at Riga City apartment rental market remained at the previous month's level. People are mostly interested in 1 - 2 bedroom apartments with average price from 250 to 400 Eur/month. A more affluent market also exists, for more expensive rental offers, where the price is an average 550 Eur/month for 2-bedroom apartment, and up to 1000 Eur/month for 3-bedroom apartment. These customers also have higher requirements for apartment quality, although rental pricing does not always reflect actual actual property condition.
Customers activity in the house market remained unchanged. Buyers are primarily interested in modern high-quality houses in areas with good infrastructure and orderly surroundings, but such properties at affordable prices are limited. Demand is typically for houses with an area of 200-250m2, with 1000 to 1200 sq.m. of land.