Analytics, Latvia, Real Estate

Zarins put down the decrease to a record-high number (1,447) of property transactions in December 2016 and a reduced inventory in January 2017 as compared to December 2016, which has slowed activity on the market.

At the beginning of this year the average price of a square meter in a Soviet-era apartment rose insignificantly. The costliest Soviet-era apartments in the Teika neighborhood were selling for EUR 865 per square meter, while the cheapest apartments could be bought in Bolderaja, for EUR 486 per square meter.

"Prices of standard design apartments rose on the Riga housing market in January. Although minimally, the prices edged up by 0.22%," said Zarins.

In January, demand for high-quality apartments for rent in Riga was only slightly higher than the supply.

Since the demand still exceeded the supply, rent prices have climbed 3 percent. Double-room and three-room apartments are in the highest demand, with the monthly rent ranging between EUR 5-7 per square meter in Riga's residential neighborhoods and between EUR 7-12 per square meter in the city center.

Demand on the rental market is ensured by foreign students coming to Riga as part of exchange programs, said Zarins, adding that these students mostly look for double or three-room apartments in the city center or the nearest neighborhoods.

Rent prices in the segment of B-class offices remained stable in January, ranging between EUR 7-10 per square meter.