Financial Services, Latvia, Real Estate

The average price of standard-design apartments in Riga's residential suburbs rose 1.4% from February to 673 EUR/m2 in March, the highest average price in six years, according to Arco Real Estate.

The highest apartment prices were recorded in the suburb of Teika where the average price of a square meter rose to EUR 835 in March, while the cheapest apartments could be bought in Bolderaja where the average price of standard-design apartments was 476 EUR/m2 in March.

Meanwhile, prices climbed at the steepest rate for double-room apartments (1.8%) and three-room apartments (1.6%), while single-room apartments rose in price by 0.8% and prices of four-room apartments moved up 1.2%.

"Notwithstanding the comparatively low average price of a square meter, which mostly applies to housing in a satisfactory condition, apartment prices were pushed up by a continued reduction in the supply of standard-design apartments," said Arco Real Estate board member Maris Laukalejs.

He explained that 673 EUR/m2 is the average statistical price, while the highest number of property deals involved apartments in a good technical condition, in the price range between EUR 720 and EUR 850 per square meter.

Latvia's Arco Real Estate is one of the subsidiaries of Estonia's Arco Vara Holding.