Analytics, Latvia, Markets and Companies, Real Estate

“But this projected growth can turn into stagnation if favorable conditions are not created for entrepreneurship, small businesses and foreign investment,” Zarins said.

In 2016, the real estate saw constant changes, although not very drastic, but fueled by moderately growing domestic demand, the market might develop in the direction of steady and sustainable growth, the Balsts CEO predicted.

He informed that in 2016 the number of property transactions rose by 10.5% from 2015. Mortgage lending quickened, with nearly every third home purchase being made thanks to the government support program for young families with children.

The average price of Soviet-era standard design apartments climbed 6.5% from the beginning of 2016 as the supply of such apartments on the market dropped.

During 2016, local buyers’ activity in the segment of new housing projects jumped 42%, Zarins said, noting that this was the figure best characterizing domestic demand last year. With 120-130 transactions recorded in Riga’s new housing market a month, prices of new apartments averaged at EUR 1,000-1,750 per square meter in the capital city’s residential neighborhoods and EUR 1,450-3,800 in the city center, with clients mostly looking for small double or three-room apartments.