Riga Sees Increase in New Project Transactions Compared to Last Year

In the first quarter of 2024, the activity in the Riga apartment market was similar to that of the first quarter of 2023. However, there were changes in the transaction composition. According to data collected by the real estate market analysis tool "Cenu Banka", transactions in pre-war projects have decreased, while those in new projects have increased.

Market Activity

In the first quarter of 2024, the total number of transactions decreased by 13% compared to the previous quarter and by 1% year-over-year. The number of transactions for serial apartments decreased by 11% compared to the previous quarter but increased by 2% compared to last year. Transactions in new projects decreased by 11% compared with the previous quarter, but showed a positive trend year-over-year, with a 7% increase. The most significant transaction decline was observed in pre-war projects, with a 17% decrease compared to the previous quarter and a 14% decrease compared to the same period last year. Particularly low market activity was observed in March, when the number of transactions in Riga decreased by 15% both monthly and annually.

Average Transaction Amounts

The average transaction amount in the Riga apartment market is approaching 80,000 EUR, a level it has maintained since 2020. Although transactions in new projects sometimes cause positive deviations from this level in certain quarters, the overall trend for the average transaction amount shows a negative tendency in almost all segments.

New Projects with the Most Transactions

From February to April, the 'Moho Park' project in Mežaparks had the highest number of transactions, with a total of 41. The second highest was in the 'Pīlādžu Mājas' project (Ziepniekkalns), with 36 transactions. There were 23 transactions at ‘Raņķa Dambis 31' (Āgenskalns), 22 in the 'Lieplejas' project (Čiekurkalns), and the 'Bauskas Home' project (Ziepniekkalns) had 19 transactions, rounding out the top five.

Largest Transactions Recorded in April

The largest recorded apartment transaction in April was concluded at Raiņa Bulvāris 27 for 368,594 EUR. The next largest transactions were concluded at Rūpniecības Iela 33 for 305,900 EUR and 304,000 EUR, as well as at Baznīcas Iela 18A for 300,000 EUR, and Rūpniecības Iela 21 K-4 for 300,000 EUR.

Price Trends

Summarizing the EUR/m2 prices for the first part of the second quarter in April for categories with sufficient transaction numbers, the following can be observed: new projects outside the C+ territory are returning to price growth, largely due to the 'Lieplejas' project with 22 registered transactions. Slight price growth is also observed in the secondary market. Meanwhile, prices for pre-war project apartments (in the C+ territory) continue to decline, while prices for serial apartments have remained unchanged for a year. 

The only pronounced trend in sales listings is the continued decrease in prices for new projects outside the C+ territory for the fourth consecutive month. In rental price listings, a seasonal increase is approaching, although significant growth is only seen in rental prices for new projects.

Overall, the Riga apartment market shows stable, though declining, transaction volumes, while prices remain at a certain level, with periodic positive influence from specific new projects. 

Note: C+ territory includes the neighborhoods: Avoti, Brasa, Centrs, Grīziņkalns, Ķīpsala, Mežaparks, Pētersala-Andrejsala, Skanste, and Vecpilsēta. All other neighborhoods are outside the C+ territory.

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