The highest activity in the high-value apartment market since 2014, the local buyers

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On the other hand, in the more exclusive segment of the market with an apartment worth over one million euros, the number of transactions is still relatively low: only five transactions have been made.

These data were collected by the real estate company “Latvia Sotheby’s International Realty”. He studied transactions whose value exceeds 150 thousand. euros for apartments and building land, over 350 thousand. euro – for private houses.

Describing the current situation in the real estate market, the owner and manager of “Latvia Sotheby’s International Realty” Ilze Mazurenko states: “Although we see that the number of transactions is high, they have become more local, the data we have shows that the current The real estate market is suited to the purchasing power of the local buyer. The volume of large transactions and the interest of buyers in transactions exceeding the 2 million threshold have been significantly reduced. This creates the conditions under which real estate sellers in the higher price segment they will have to wait for a much longer time for a buyer. “

Point to a record

The demand for “premium” housing in the capital increased by 11.7% or 9.9 million euros. 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.

99 “premium” properties have welcomed new owners in Pieriga. In the segment from 150 to 300 thousand. 76 properties were purchased for 18 euros and 18 in the segment from 300 to 500 thousand. EUR. Over 500,000 only five were bought for EUR, but in the more exclusive price segment, no property was sold for more than EUR 1 million. For all transactions, € 24.6 million was issued. The dynamics of demand appears 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 assets traded in Pieriga’s “premium” real estate market have more than doubled, the company notes.

It also points out that there is a growing difference in the apartment market in the regions considered. In total, 555 apartment contracts were concluded in the first six months of this year, the total value of which reached 124 million euros. The Latvian premium apartment market has not seen such activity since 2014. Furthermore, if this trend continues, the year’s result could be even more impressive.
Last year, in the first half of the year, 416 apartments were purchased for 101.4 million euros. Therefore, this market segment attracted 22.4% or € 22.7 million more investments this year, with market participants completing 139 more transactions than in the corresponding period of the previous year.

Riga as a driving force

In the first half of this year, 402 apartment purchases were carried out in Riga for a total amount of € 90.3 million; compared to the first half of last year this is a rapid increase, as last year in this period 307 transactions were concluded for a value of 74.7 million euros (increase of 30.9% and 20, respectively, 8%).

Looking at the distribution of transactions by price groups, the dynamics of demand differ. This year, 341 transactions with properties have already been concluded, the price of which has been in the range from 150 to 300 thousand. euro, for a total of 64.8 million euro, 37.1% more than in the first six months of last year. In the price segment from 300 to 500 UK The demand for euros still remains surprisingly stable, 51 properties have been built and in the last five semesters – 2.1 million euros more than at the beginning of 2021. In the apartment market segment more exclusive (over 500 thousand euros), 10 transactions were concluded in Riga for a total value of 6.5 million euros in the period January-June of this year, but also in this case no property was sold in transactions exceeding million euros. The average price of an apartment transaction in Riga at the beginning of the year was 225 thousand. EUR.

Alla Pieriga – more ambitious than last year

In the second half of last year, a new record for the sale of apartments was recorded in Pieriga, but in the first six months of this year the demand remained high, confirming the possibility that the jump will be even greater in the second half of this year. .

This year 74 owners have already received the keys to the new “premium” apartments, paying them a total of 13.8 million euros (114% more than the 6.4 million euros of the first six months of last year) .
This year 79 new high quality apartments were purchased in Jurmala for a total of 19.9 million. EUR, of which 59 were 150-300 thousand. for a value of euros, 19 apartments were in the price range of 300-500 thousand. EUR and just an apartment cost more than 500 thousand. EUR. Jurmala The dynamics of the apartment market is significantly different from that of Riga and Pieriga, as a slight decline of 300 thousand is observed. for an amount of EUR compared to the first half of 2021.

The average volume of transactions has also changed: in the first half of the year it was 240,000. euro, but the average area of ​​the residential premises was 144 m² (14% more than the 127 m of apartments purchased at the end of last year²).

The demand for apartments in new projects is growing in all regions. Of the 402 premium apartments purchased in Riga, 287 are located in the new projects. Only 11 of the 79 premium apartments purchased in Jurmala were not in the new projects. In the Pieriga territory, this proportion is very similar: 63 out of 74 transactions are the construction of new projects.

Five houses over a million

In the market of the most expensive private houses, 41 properties were purchased this year for a total value of 26.8 million euros.
In the capital, 5 transactions were concluded for a value of 2.6 million euros (three private houses in the price range of 350-500 thousand euros, two cost more than 500 thousand euros and there was no transaction over 1 million of Euro). 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 million euros.

In Pieriga’s “premium” private home market, 22 transactions were carried out from January to June for a total of 9.9 million euros (five private homes in the 350-500 euros price range, four over 500 thousand euros and five over one million euros). 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 real estate has slightly increased, up to 450 thousand. euro (2.9% compared to the previous half year). The average area of ​​the territory of a private house reached 342 m²and this year the average price per square meter has dropped to 1,600 euros / m² (-7.5%).

In the Jurmala “premium” private housing market, 14 transactions were concluded for an amount of 14.2 million. euro, with an increase of 26.5% compared to the first half of 2021, when 11.2 million were invested. EUR. In general, each house costs an average of one million euros. In Jūrmala itself, five transactions were carried out with particularly exclusive private houses, which cost more than one million euros.

15 biggest deals with the earth

In the first half of 2022, 15 land intended for construction was purchased, the total value of which was 3.7 million euros. In Riga and Jurmala, six properties were purchased each (10 transactions of 150-300 thousand euros, one in Jurmala – in the 300-500 thousand euros segment, and one in Riga – in the over 500 thousand euros segment), while in Pieriga only three families plan to build a new house on a plot of land in this price range. In Riga, properties for 1.5 million euros were purchased, in Jurmala for 1.4 million euros, while properties for 830 thousand were purchased in Pierīga. EUR.

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