Riga's New Housing Projects See Rise in Average Transaction Amounts

The second quarter of 2024 has begun with increased activity in Riga’s apartment market, both in terms of the number of transactions and rising prices in the new project segment, according to data compiled by the real estate market analysis tool ‘Cenu Banka’.

Activity

According to the latest Riga apartment market review by ‘Cenu Banka’, April (the first month of the second quarter) has seen the highest transaction activity this year thus far. This increase was mainly due to the rise in serial apartment transactions, which reached their highest level since August 2023. In the other apartment categories (new projects, pre-war buildings), the increase in the number of transactions has been lower, but still significant.

Price trends

Data compiled by ‘Cenu Banka’ indicates that prices continue to rise in the primary and secondary markets for new projects during the second quarter. In new projects outside the C+ territory, prices have increased, with the indoor area price exceeding 2700 euros per square meter. The significant rise in housing prices has been largely driven by transactions recorded in more expensive new projects. Like, for example, ‘Moho Park’ in Mežaparks (average price – 3000 euros per square meter), ‘Lieplejas’ in Čiekurkalns (average price – 2830 euros), and ‘Ābeļziedu terases’ in Teika (average price – 3260 euros). A gradual price increase was also recorded in the secondary market for new projects, reaching the highest level since 2018, with indoor area prices approaching 2000 euros per square meter.

Meanwhile, apartments in pre-war buildings averaged 1630 euros per square meter (in non-renovated buildings) and 2382 euros per square meter (in renovated buildings). ‘Cenu Banka’ notes that the price per square meter for apartments in pre-war buildings has “recovered” and reached the level observed in mid-2023. However, the number of transactions involving these properties is not large.

Average transaction amounts

A record was set for the average transaction amount – in new projects outside the C+ territory it exceeded 140,000 euros. However, these transactions have not raised the overall market average transaction level, as the share of transactions involving apartments in serial houses remains high.

New projects with the most transactions

From March to May, the highest transaction numbers in new projects were recorded in the ‘Moho Park’ (Mežaparks), totaling 47 transactions. The second highest number of transactions was in the ‘Lieplejas’ project (Čiekurkalns), with 22 transactions, while the third place was taken by the new project ‘Ābeļziedu terases’ (Teika) with 19 transactions. The top five projects with the highest number of transactions are completed by ‘Ranķa Dambis 31’ (Āgenskalns) and ‘Mārpagalmi’ (Āgenskalns), each with 14 transactions.

Largest transactions recorded in May

The largest registered apartment transaction in May was concluded at Kuģu Street 28 for 465,500 EUR. The next largest transactions were concluded at Raņķa Dambis for 448,500 EUR, at Ščecinas Street 8 for 390,000 EUR, at Stūrīša Street 4 for 385,000 EUR and Ausekļa Street 4 for 330,000 EUR.

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