In the first half of this year, 611 transactions were concluded in the premium housing market in Latvia, 137 transactions more than in the first six months of last year. Together with the number of transactions, their turnover grew accordingly – in the period January-June of this year prize 154.6 million euros were invested in housing, but in the more exclusive market segment with an apartment value above 1 million euros, the number of transactions is still relatively small: only 5 transactions have been made.
This information is confirmed prize the real estate segment “Latvia Sotheby’s International Realty” conducted a study on the transaction activity in the first six months of 2022 in the three regions examined and in the three prize in the real estate market segments: apartments, private houses and building plots in Riga, Jurmala and Pieriga. Data collection sought information on prize for real estate transactions, i.e. over 150,000 euros for apartments and building land and over 350,000 euros for private homes.
Continuing the comparison with the first half of last year, request prize for housing in the Latvian capital it increased by 11.7% or 9.9 million euros. Interestingly, the number of homes purchased increased faster than their total value. This year, the interest of buyers in the vicinity of Riga proved to be more persistent than elsewhere.
This year 99 new owners have been welcomed in the Pieriga area prize property. In the segment from 150,000 to 300,000 euros 76 properties were purchased and 18 in the segment from 300,000 to 500,000 euros. Over 500,000 euros I only bought five, but in the most exclusive in the price segment above € 1 million no property was sold. For all transactions, € 24.6 million was issued. The dynamics of demand are particularly impressive, comparing the first half of this year with the corresponding period of last year, when 47 purchases were signed, for a turnover of 11.1 million euros. This means that Pierīgas prize assets traded in the real estate market more than doubled.
There is a growing difference between the regions reviewed in the apartment market
In all three regions under review, a total of 555 apartment transactions were concluded in January-June this year.whose total value has reached 124.0 million euros. Such market activity in Latvia prize the apartment market hasn’t been seen since 2014. Also, if this trend continues, this year will prove even more impressive. This is particularly indicated by the comparison of this year’s market activity indicators with the first six months of last year, when 416 apartments were purchased for € 101.4 million. Respectively, the year 2022 attracted 22.4% or 22.7 million euros more in investments, which allowed market participants to conclude 139 more transactions compared to the corresponding period of the previous year.
Apartments Riga – prize market engine
In the first half of this year, 402 apartments were purchased in Riga for a total value of 90.3 million euros, a sharp increase compared to the first half of last year, since in the first six months 307 transactions were concluded for a value of of 74.7 million euros last year (respectively 30.9% and 20.8% year-on-year increase).
Looking at the distribution of transactions by price groups, the dynamics of demand between the groups differs considerably. This year it is already closed 341 transactions In the price range of 150,000-300,000 euros, for a total of 64.8 million euros, 37.1% more than the 47.3 million turnover of the first six months of last year. EUR. In the price range of 300,000-500,000 euros demand still remains surprisingly stable, with 51 properties sold and over the last five semesters – € 2.1 million more than in early 2021. In the market segment of the most exclusive apartments (over 500,000 euros). For the period January-June of this year, 10 transactions were concluded in Riga for a total value of 6.5 million euros, but in transactions exceeding € 1 million once again no property was sold. The average transaction price of an apartment in Riga earlier this year was 225,000 euros.
You do prize in the apartment market, the year 2022 started with an even wider reach than last year
In the second half of last year the territories bordering the capital reached a new record in the sale of apartments, and in the period January-June of this year the demand remained, reinforcing the likelihood that the jump is even greater in the second half of this year. ‘year.
This year, 74 owners have already received a new one prize keys to the apartment, paying her a total of 13.8 million euros. This is – 114% more than 6.4 million in the first six months of last year.
Even in a tourist spot New in Jurmala prize 79 owners bought apartments this year, the cost of which was 19.9 million euros, of which 59 were worth 150,000-300,000 euros, 19 apartments were worth 300,000-500,000 euros and a single apartment exceeded 500,000 euros. The dynamics of the Jūrmala apartment market is significantly different from that of Riga and Pierīga, as a slight decrease of 300,000 euros is observed compared to the first half of 2021, for a total of 19.9 million euros.
In addition to the total demand, the size of transactions has also changed: average price of the apartment in the period January-June of this year state 240,000 euroswager average living space state 144 sqm (increase of 14.0% compared to the 127 square meters of apartments purchased at the end of last year).
Application for apartments in new projects increasing in all regions. Line bought 402 prize among the apartments, 287 are in new projects. Only 11’s in Jurmala 79 for those purchased prize the apartments were not in the new projects. In the territory of Pieriga this proportion is very similar: 63 out of 74 transactions are construction of new projects.
Latvian prize 41 homes worth € 26.8 million were purchased this year in the private real estate market in the regions under review.
Capital closed 5 transactions worth 2.6 million euros (three private houses in the price range of 350,000-500,000 euros, two over 500,000 euros and none over 1 million euros). Each house cost an average of € 542,000, but an average of € 1,300 / m2 was issued for each square meter. In the first six months of 2021, the amount of transactions was 7.0 million euros.
In the territory of Pieriga prize in the private real estate market in the period January-June, 22 houses satisfied the new owners, for a total of 9.9 million euros (five private houses in the price range of 350,000-500,000 euros, four over 500,000 euros and five more than one million EUR) . As a result, the first half of 2022 recorded an increase of 34.4% compared to the 7.4 million euros at the end of the year. The average price of the property rose slightly to 450,000 euros (2.9% from 436,000 euros in the months of July-December). The average land area of a private house reached 342 square meters, and the average price per square meter this year dropped to 1,600 EUR / m2 (-7.5% down from 1,800 EUR / m2 at the end of the previous year). .
Jurmala prize in the private real estate market concluded 14 transactions for an amount of 14.2 million euros, with an increase of 26.5% compared to the 11.2 million euros invested in the period January-June 2021. In general, each house costs an average of 1.0 million euros. However, it is precisely in the Jūrmala private housing market that five transactions were carried out in this semester, which came from the most exclusive prize of the private residential housing market segment, the value of which has exceeded the limit of 1 million euros.
Premium building plot: in the first half of 2022, 15 properties were purchased for construction in the three regions subject to reporting, whose total value was 3.7 million euros. in Riga and Jurmala six properties were purchased in each (10 properties worth EUR 150,000-300,000, one in Jūrmala territory in the EUR 300,000-500,000 segment and one in Riga territory in the segment above EUR 500,000), while In Pieriga only three families have plans to build a new house in this price range (two worth € 150,000-300,000 and one worth € 300,000-500,000). Properties purchased in Riga worth 1.5 million euros, in Jurmala for 1.4 million euros instead In Pieriga properties purchased for 830,000 euros.
Describing the current situation of the real estate market, Ilze Mazurenko, owner and manager of “Latvia Sotheby’s International Realty”. States: “Although we see that the number of transactions is high, they have become more local, the data we have shows that the current real estate market corresponds to the purchasing power of the local buyer. The volume of large transactions and the interest of buyers for transactions exceeding 2 million have been significantly reduced. This creates the conditions under which sellers of properties in the higher price segment will have to wait for a buyer for a much longer period of time. “
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