In Latvia, the largest developers in terms of the amount of apartment sales sold last year were Bonava Latvija, R.Evolution and YIT Latvija, according to data compiled by the real estate consulting company Colliers.
For the third year in a row, Bonava Latvija is the largest developer – last year the company sold 449 apartments for 44.1 million euros.
In second place is “R.Evolution” with 55 transactions for 21.7 million euros, and in third place “YIT Latvija” with 133 transactions for 16 million euros.
Vastint Latvia is in fourth place with 60 transactions for 15.8 million euros, while AFI Europe is in fifth and sixth place with 99 transactions for 11.7 million euros and River Properties with 77 transactions for 11.7 million euros. .
In seventh place is “Merks” with 62 transactions for 10.7 million euros, in eighth place – “One Development” with 62 transactions for 7.8 million euros, in ninth place – “Estera” with 100 transactions for 7.4 million euros, but developer “Top 10” concludes “Eskar” with 62 deals for 6.8 million euros.
In terms of the amount of transactions, the most popular new project last year was the “Dreiling House” developed by “Bonava Latvija”, where 152 transactions for 15.7 million euros were made. In second place is the project “Coastal Quarter” of the same developer, in which 155 transactions for 13.3 million euros were made.
In third place is the project “Trebū Home” of the developer “AFI Europe”, in which 99 transactions for 11.7 million euros have been made.
According to real estate consulting companies Colliers According to the aggregated real estate market data, in the “Review of the New and Renovated Apartments Market in Riga and Near Pieriga 2021” transactions in the primary market in 2021 have grown significantly. With the sale of 2,420 apartments and the total transaction value reaching 297 million euros, the total amount of market transactions has increased by 15%.
Although housing prices rose by 10-20% last year, there is still a high demand for new housing, and real estate developers have not lacked the opportunity to sell it. One of the positive aspects is the bank financing available to buyers and the state support programs managed by Altum, as well as the savings that many people want to invest wisely during the pandemic – when buying real estate.
According to Luminor banka, about 20% of all housing loans are issued for the purchase of properties outside Riga and Pieriga, which can be explained by the decrease in supply in and around the capital, as well as lower property prices in the regions. The average mortgage borrower is between the ages of 30 and 36 with an income per household of around 2,000 euros. The average amount of property purchased is 100,000 euros.
“The number of real estate transactions has increased throughout the Baltics, and there is still a great deal of public interest in purchasing real estate. In turn, the housing lending market in Latvia has more than halved over the past year, driven not only by the number of transactions but also by their size. It is expected that lending volumes will continue to grow this year as well. According to Luminor data, the greatest interest of the population is in housing in new projects and the purchase of Soviet-era standard-type apartments. Given the high demand, supply in the housing market is currently insufficient, which is also contributing to rising house prices, while construction costs are rising. The rise in house prices is not only observed in the Baltics, but also in Europe, at the same time property prices in Latvia have not yet reached the prices of neighboring Estonia, Lithuania or other European countries, so they are likely to continue to rise, ”says Kaspars Lukačovs.
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