The construction company and real estate developer “YIT LATVIJA” puts into operation the first building of the four-building complex “Silvas nami” on Dzelzavas Street, Riga, next to Biķernieku Forest. The apartments in it have already been sold out, and almost all the apartments in the second building have been sold out or reserved.
However, the observations of experts show that although the interest of buyers is constantly high, the population has become more cautious in their decisions. The Silvas Nami project envisages four seven-storey apartment buildings, the second of which is scheduled to be commissioned this summer, while the frame of the third building will be completed in July. Construction of the last, fourth building is scheduled to begin in the second half of this year.
There has been a very high level of interest in the Silvas Nami project for 3- and 4-room apartments purchased as a family home. However, the company has observed that buyers need more time to weigh the decision to buy a particular property. If in the autumn there was more activity, buying on the principle of “buy until the price does not rise”, now buyers have to get used to the rise in prices in the real estate market as a whole.
In the “Silvas nami” project, some more apartments can be purchased in the range from 2200-2300 EUR / m2, however, experts point out that when assessing market trends, it is necessary to be aware that in new projects the purchase of an apartment must cost around 2500 EUR / m2.
In addition, the price jump has been very sharp compared to the beginning of this year, when prices for new projects fluctuated around 2000 EUR / m2. However, it should be noted that apartment prices in Riga are still lower than in Vilnius, and much lower than in Tallinn. Buyers are currently matching the price of a property with its maintenance costs and potential price increases for various utilities and other services.
“There is no denying that the real estate sector is currently in a difficult situation – the demand for apartments is greater than the supply, but buyers also choose not to rush into decision-making and very carefully evaluate even the smallest benefits provided by one or another project. The rise in prices in other sectors is also being assessed, for example, the rise in the prices of heating, gas and electricity makes it necessary to carefully plan expenses and evaluate the household’s options for the intended apartment, ”says Andris Božē, Member of the Board of YIT LATVIJA.
Given the high inflation, buyers have to accept and expect that the average price level for new projects is unlikely to be below 2500 EUR / m2, and according to inflation and price increases in other areas (services, construction materials, energy, fuel, etc.) only dune.
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