Property prices in Riga lowest among Baltic capitals - Balsts

The Tallinn market has been able to recover from the crisis in a couple of years and the price change from its pre-crisis top level is just -9 percent. The market development in Vilnius is somewhat slower, and the price difference from the highest level is -32.5 percent.

Meanwhile, the price difference in Riga compared to the highest level before the crisis is even -58 percent. Even though the number of property transactions since early 2016 has risen by 26 percent, it shows slow development compared to Tallinn and Vilnius, said Zarins.

"There are several factors laying obstacles to property market development – the demographic situation and business development are not promoted properly, there is no favorable situation for foreign investments. The positive aspects are a small rise of average wage that had made financing from banks more accessible, and the program for young families with children, but these factors are insufficient to take Riga to the same level as its neighboring countries," Zarins said.

In April, soviet-era apartments cost EUR 685 per square meter on the average. The highest prices were recorded in Teika neighborhood - EUR 823 per square meter, and the lowest in Bolderaja - EUR 476 per square meter. Apartment prices reduced 0.12 in Mezaparks neighborhood, while prices in other neighborhoods rose minimally, 0.06 percent to 1.92 percent.

Apartment prices for new apartment buildings currently stand at EUR 1,000 to EUR 1,750 per square meter, and up to EUR 1,500 to EUR 3,900 per square meter in the center of the city.

Office space rent ranges from EUR 12 to EUR 16 per square meter in Riga’s Class A office centers, and even up to EUR 19 the the most prestigious buildings.