Standard-type apartments, January 1, 2012
In December of 2011, the price drop in the standard-type apartment market stopped. The
average price of standard-type apartments in December 2011 amounted to 583 EUR/m². Thus, the
price level in December slightly increased – by 0.2%. Since the beginning of 2011, the average prices
of standard-type apartments have decreased by 4.3% in total.
Changes in standard-type apartment prices in 2011
0.2%
0.0%
December
November
September
-0.7%
August
July
June
May
April
-0.7% -0.7% -0.8%
October
-0.2% -0.2%
-0.3% -0.3%
March
-0.5%
February
-0.2%
January
0.4%
0.2%
0.0%
-0.2%
-0.4%
-0.6%
-0.8%
-1.0%
2011
Source: ARCO REAL ESTATE
In 2011, the overall activity in the real estate market has not survived any significant jumps or
drops. At the same time, in certain neighbourhoods the price reduction during the year has exceeded
7%, which is considered to be a significant fall in prices.
The number of apartments offered in the market has decreased significantly in December. In
Riga the total the number of apartments offered in the market has decreased by 11.2 %, but in the
largest housing estates this number has decreased by 15%, and in the central part of Riga – by 9.9%
The significant decrease in the supply observed in December is not surprising; it is an annual
phenomenon that is explained by the Christmas and New Year holidays at the end of the year, when
the real estate market activity usually decreases. Also, the small price increase in December (+0.2%)
is resulting from the substantial reduction in supply. In a number of neighborhoods there were not
observed any changes in prices, and the prices at the end of the year are to be regarded as stable.
Since January 1, 2011, the average price of 1 m² of a standard-type apartment has decreased
by 4.3%. The biggest price drop as per January 1, 2012 was observed at Bolderāja – by -7.6%. But at
Teika, in despite of of a slight decrease in prices in certain months of 2011, the prices have shown a
very slight increase – by 0.1%. This is explained by the fact that in 2011, the demand remained
focused on good quality apartments with good location, placement, and good interior decoration. In
2011, positive price changes were observed in the central part of Riga; however, the same is
attributable also to the Teika area, which is considered a good alternative to the centre of Riga. This
could explain the fact that the prices remained at a sufficiently high level at Teika.
Price changes since January 1, 2011
1
0.4%
-2.2%
-5.5%
-6.9%
-7.5%
ka
l
Zi
ep
ni
ek
Te
ež
ci
e
-5.7%
-6.9%
-7.1%
-6.7%
Im
an
ns
ik
a
-7.6%
M
Pu
r
vc
ie
m
s
m
s
gl
a
-6.5%
Ju
-6.4%
ta
-4.9%
Source: ARCO REAL ESTATE
In December 2011 the apartment prices in housing estates were at the level of April 2010.
Since September 2009 when the price level was the lowest, the prices have grown by 19.7%.
In December 2011 the average standard-apartment price has returned to the level of October 583 EUR/m². The prices on average were by 64.1% lower than on July 1, 2007, when the average
price of a non-renovated standard-type apartment had reached the highest ever value of 1620
EUR/m². But the average price of a non-renovated standard-type apartment has decreased by 3.8%
if compared with the price level of January 1, 2011.
In 2008, the average prices of standard-type apartments in Riga decreased by 33.5% on
average. In 2009, the average prices decreased by another 44,2%. But in 2010 the prices grew by
16.9% in total. In 2011, the price fall during the year was 4.3%.
1 800
1 600
1 400
Movements of average price of standard-type apartments
in housing estates of Riga, EUR/m²
1 620
1 450 1 433
1 405
1 200
1 037
934
1 000
800
521 545 609
600
606 605 601 597 592 590 588 584 584 583
582 583
400
200
2007
2008
2009
2010
December
November
October
September
August
July
June
May
April
March
February
January
December
January
December
January
December
January
December
July
January
0
2011
Source: ARCO REAL ESTATE
In the housing estates analyzed by the ARCO REAL ESTATE in December 2011, the
average price of a 1-room apartment was 622 EUR/m², and compared with the price of the previous
month, this price has increased by 0.2%; average price of a 2-room standard-type apartment was 590
2
EUR/m², and compared with the average price of the previous month, this price has increased by
0.2%; average price of a 3-room apartment was 563 EUR/m², and compared with the prices of the
previous month, this price has remained unchanged; average price of a 4-room apartment was 557
EUR/m², and compared with the average price of the previous month, this price has increased by
0.2%.
Average prices of standard-type apartments in Riga housing estates: breakdown by number of
rooms (EUR/m²)
654
621
587
577
649
615
584
575
644
613
584
578
636
609
581
576
633
604
578
572
628
599
573
569
626
596
571
567
624
594
567
566
623
590
564
561
622
591
564
560
622
589
563
558
621
589
563
556
Source: ARCO REAL ESTATE
Number of apartments offered for sale in December 2011, compared with the level of the
previous month, has significantly decreased both in the largest housing estates analyzed by the
ARCO REAL ESTATE (-15%) and in the Riga City in total (-11.2%). The number of apartments
offered and located in the central part of Riga has decreased by 9.9%.
Having analyzed the number of apartments offered we can see that the biggest number of
apartments offered in December was observed at Purvciems, Pļavnieki, Ķengarags and Āgenskalns.
In contrast, the smallest number of apartments offered was observed at Bolderāja and Zolitūde. In
December, the number of apartments offered decreased in most housing estates. The largest
decrease of number of apartments offered was observed at Purvciems – by 24.3%. The lowest
reduction of the number of apartments offered was observed at Imanta – by 6%. The most popular
apartments in the housing estates of Riga were 1-room and 2-room apartments. But 4-room
apartments were the less popular ones.
Number of apartments offered in the market in
Riga in December 2011
1553
Centrs, Vecrīga
Zolitūde
129
253
Ziepniekkalns
Vecmīlgrāvis
137
192
Teika
477
Purvciems
289
Pļavnieki
Mežciems
159
270
Ķengarags
158
Jugla
265
Imanta
Iļģuciems
Bolderāja
Āgenskalns
136
75
262
Source: ARCO REAL ESTATE
3
1st January
659
627
590
578
December
661
626
590
578
November
662
628
590
578
October
December
663
624
588
575
September
November
656
617
577
566
August
October
658
617
573
562
July
September
660
617
571
556
June
August
654
606
561
548
May
July
629
587
544
528
April
June
614
574
532
515
March
May
598
566
519
498
February
April
568
541
496
480
2012
January
March
room
rooms
rooms
rooms
February
1
2
3
4
2011
January
2010
622
590
563
557
Dynamics of supply in Riga
4 000
3 500
3 000
Nr. of offers
2 500
2 000
1 500
1 000
500
0
January
February
March
April
May
June
July
August
September October
November
December
2011
mikrorajoni
2 663
2 925
3 190
3 356
3 417
3 330
3 474
3 509
3 433
3 335
3 295
2 802
citi
2 068
2 319
2 450
2 451
2 548
2 444
2 566
2 599
2 594
2 759
2 676
2 498
Source: ARCO REAL ESTATE
Apartment supply structure by Riga housing estates
End of 2011
Āgenskalns
Jugla
Purvciems
Zolitūde
Bolderāja
Ķengarags
Teika
Centrs, Vecrīga
Iļģuciems
Mežciems
Vecmīlgrāvis
Imanta
Pļavnieki
Ziepniekkalns
6% 2%
3%
6%
35%
4%
6%
4%
7%
3%
6%
11%
3% 4%
Source: ARCO REAL ESTATE
In December 2011, the average price of 1 m² has slightly increased in most housing estates.
Average price of 1 m² has increased by 0.2-0.6%. The biggest price growth in December was
observed at Mežciems, where the prices decreased by 0.6% on average. In most housing estates the
prices remained unchanged. Only at Vecmīlgrāvis a slight price reduction – by 0.3% - was observed.
4
Change of average standard-type apartment prices in Riga housing estates (%)
Average 1m² price
on 1st January, 2012
Average 1m² price
on 1st December,
2011
Price
changes,
%
556
603
615
612
728
508
510
477
602
592
640
606
566
554
601
614
608
724
509
510
475
602
592
640
604
566
0.3%
0.2%
0.3%
0.6%
0.5%
-0.3%
0.0%
0.4%
0.0%
0.0%
0.0%
0.2%
0.0%
Jugla
Pļavnieki
Purvciems
Mežciems
Teika
Vecmīlgrāvis
Ķengarags
Bolderāja
Ziepniekkalns
Imanta
Zolitūde
Āgenskalns
Iļģuciems
Source: ARCO REAL ESTATE
Since the beginning of 2011, the standard-type apartment prices have decreased by 4.3%.
From the beginning of 2010, the prices have grown by 11.9% on average. Compared with the
beginning of 2009, in December 2011 the standard-type apartment prices in the housing estates of
Riga were by 37.6% lower. Since the lowest price point in September 2009 when the average price of
1 m² in the Riga’s housing estates had decreased to 487 EUR, the prices have grown by 19.7% on
average.
Average standard-type apartment prices in Riga housing estates (EUR/m²)
1200
1000
800
600
400
200
ka
Te
i
Pu
r
vc
ie
m
s
s
Zi
e
M
pn
i
ež
ek
k
cie
al
m
ns
ta
an
Im
Ju
gl
a
0
1st January, 2009
1st January, 2010
1st January, 2011
Source: ARCO REAL ESTATE
5
1st January, 2012
The highest prices in December 2011 were still observed at Teika, where the average price
of 1m² has increased slightly and was amounting to 728 EUR. In turn, the lowest prices in December
2011 were observed at Bolderāja, where the average price of 1m² has slightly increased - to 477
EUR.
Average standard-type apartment prices in Riga housing estates in December 2011
728
Teika
640
Zolitūde
Purvciems
615
Mežciems
612
Āgenskalns
606
Pļavnieki
603
602
Ziepniekkalns
592
Imanta
566
Iļģuciems
556
Jugla
Ķengarags
510
Vecmīlgrāvis
508
477
Bolderāja
0
100
200
300
400
500
600
700
800
EUR/m²
Source: ARCO REAL ESTATE
In December 2011, the most expensive apartments still were apartments in the houses of the
th
th
119 series and 104 series, where the price of 2-room apartments varied from 32 to 39 thousand
EUR, depending on location. But the so-called Lithuanian design houses have been the cheapest
ones, where the price of 2-room apartments varied from 21 to 28 thousand EUR, and the so-called
Khrushchev-time houses, where the price of 2-room apartments varied from 19 to 28 thousand EUR,
depending on the housing estate.
Standard-type apartment prices by series in Riga housing estates in November 2011 (prices of 2room apartments, in EUR)
45 000
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
0
103.
104.
602.
119.
Min
Average
Source: ARCO REAL ESTATE
6
467.
Max
lietuviešu
hruščova
Ogre
The average prices in Ogre in December 2011 remained unchanged. The average
apartment price in December was 420 EUR/m². The prices have decreased by 2.1% in Ogre in 2011.
Compared to other towns in the vicinity of Riga, apartment prices in Ogre have remained stable and
the price drop has not been high. At the same time, activity in the apartment market of Ogre is to be
assessed as low.
Average price of 1 m² in Ogre in 2011 (EUR/m²)
De
ce
m
be
r
be
r
No
ve
m
O
ct
ob
er
be
r
t
Se
pt
em
Au
gu
s
Ju
ly
Ju
ne
ay
M
Ap
ril
ar
ch
M
Fe
br
ua
ry
Ja
nu
a
ry
432
430
428
426
424
422
420
418
416
414
Source: ARCO REAL ESTATE
Jūrmala, Kauguri
In December 2011 the apartment prices at Kauguri decreased by 0.4% on average. The
average price in December was 421 EUR/m². During 2011 the prices at Kauguri have decreased by
6.2%. The price reduction is higher than the average for housing estates of Riga. Prices have fallen
due to decrease of demand for apartments located in such places. The most expensive apartments
at Kauguri still were the 103rd series apartments, but the cheapest apartments were in the
Khrushchev-time houses and small-family houses.
Average price of 1 m² in Jūrmala (Kauguri) in 2011 (EUR/m²)
Source: ARCO REAL ESTATE
7
be
r
De
ce
m
be
r
No
ve
m
O
ct
ob
er
be
r
Se
pt
em
t
Au
gu
s
Ju
ly
Ju
ne
ay
M
Ap
ril
ar
ch
M
Fe
br
ua
ry
Ja
nu
a
ry
455
450
445
440
435
430
425
420
415
410
405
Salaspils
In December 2011, the apartment prices in Salaspils have remained unchanged. The average
price in December was 481 EUR/m². In 2010 in total, the apartment prices at Salaspils increased by
22%. In 2011 the apartment prices in Salaspils have tended to decline, and since the beginning of the
year the prices have decreased by 6% on average. Prices have fallen like in Jūrmala, Kauguri. The
price decline was most expressed at the beginning of the year, and in the last quarter of the year the
decline stopped.
Average price of 1 m² in Salaspils in 2011 (EUR/m²)
De
ce
m
be
r
be
r
No
ve
m
O
ct
ob
er
ep
te
m
be
r
t
S
Au
gu
s
Ju
ly
Ju
ne
ay
M
Ap
ril
ar
ch
M
Fe
br
ua
ry
Ja
nu
a
ry
515
510
505
500
495
490
485
480
475
470
465
Source: ARCO REAL ESTATE
Jelgava
In December 2011 the apartment prices in Jelgava decreased by 1% on average. The
average price in December was 291 EUR/m². The market activity in Jelgava is still low. In 2011 the
apartment prices in Jelgava tended to decline, and since the beginning of 2011 the prices have
decreased by 12.9% on average, which is to be considered a significant price fall. Apartments located
in the central part of the city with high-standard interior decoration are still most demanded and most
popular.
Average price of 1 m² in Jelgava in 2011 (EUR/m²)
340
330
320
310
Source: ARCO REAL ESTATE
8
be
r
De
ce
m
be
r
No
ve
m
O
ct
ob
er
be
r
Se
pt
em
t
Au
gu
s
Ju
ly
Ju
ne
ay
M
Ap
ril
ar
ch
M
Fe
br
ua
ry
Ja
nu
a
ry
300
290
280
270
260