Latvia, Real Estate

According to the estimates by Arco Real Estate, the prices of the standard-design apartments will grow 6% this year, 6% in 2019 and 5% in 2020.

"We have developed also positive and negative scenarios for the price growth but none of them envisages growth faster than 10%," Laukalejs said.

Under the positive scenario, the prices of the standard-design apartments will grow 10% this year, 10% in 2019 and 7% in 2020. Under the negative scenario, the price growth is estimated at 5% in each 2018 and 2019 but will slow down to 3% in 2020.

Last year the prices of the standard-design apartments in Riga's suburbs increased 8.9% to the average price of EUR 767 per square meter. Laukalejs said the prices had increased faster than expected because previously Arco Real Estate had estimated the growth at 6-7% in 2017.

The average price of the standard-design apartments last year stood at 53% of the all-times record-high which was EUR 1,650 per square meter in July 2007. Laukalejs said the prices would probably be growing for at least the next three or four years until they reached 70% of the peak price recorded in 2007.