Although at the end of 2023, compared to the trends of the last three years, transaction activity was low, it almost did not affect the average price per square meter in the last quarter, – the data compiled by the real estate analysis show.
Looking at the price data per square meter for the whole year, new constructions increased by 12-15%, but series apartments decreased by 6%.
Last year, the total amount of real estate sales in Riga decreased by 9%. The only category in which sales prices per square meter increased was new construction, in this segment the total amount of transactions also decreased the most – by 13.4%. In serial house projects, including 103, 104, 119, 467, 602, Brezhnev-era, Czech, French, Khrushchev-era, Lithuanian, small-family and special projects, the total amount of transactions last year fell by 7.3%, but this did not affect demand – supply remained unchanged.
According to expert data, mortgage loans were used in approximately 37% of transactions in 2023 – four percentage points less than in 2022, when loans issued by credit institutions for the purchase of housing were issued in 41% of cases.
“The main expenses related to real estate can be divided into at least three parts. First, repairs and maintenance, secondly, utility payments, thirdly, housing loan payments. We have the opportunity to influence all of them. For example, last year the costs of both construction and building materials rose sharply, which explains why buyers choose apartments that are as ready for living as possible – so that they can immediately live in the chosen apartment, not rent an apartment elsewhere and not incur additional expenses for repairs. Also, in new projects, apartments are more energy efficient, which optimizes utility payments,” analyzes expert Edgars Surgofts.
He explains that there are different strategies for choosing a home loan. One of the ways – by the annual interest rate. “The fixed bank rate in combination with the annuity schedule helps the client to avoid guessing about what loan rate the bank might apply in the future, making it easier to plan their budget. At the same time, we also consider applications when real estate is pledged as a partial or full down payment for a loan, ” says Surgoft.
2024-03-15 16:47:00
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