Riga apartment market: transactions and prices on the rise

The third quarter of 2024 in the Riga apartment market has begun with increased transactions and rising square meter prices in nearly all key categories, according to data compiled by the real estate market analysis tool Cenu Banka.

Activity

The Riga apartment market report indicates a rise in transactions at the beginning of the third quarter after a slight decline in May and June. In July, 839 apartment transactions took place (compared to 800 in May and 812 in June), while even incomplete data for August indicates a yearly transaction record. Most transactions involved standard apartments, with their share reaching a historically highest level of 59% (data has been collected since 2018).

In July, of 839 apartment transactions, 183 were registered in new housing projects and 121 in pre-war buildings. In August, of 868 apartment transactions, 182 took place in new housing projects and 106 in pre-war buildings. The collected data shows that, compared to the previous quarter, the number of transactions involving apartments in new projects decreased in July and August (compared to 217 transactions in May and 228 transactions in June). Meanwhile, for apartments in pre-war buildings, there was an increase in the number of transactions compared to the previous quarter (88 in May and 89 in June).

Price trends

In the first months of the third quarter (July and most of August data), there is a noticeable growth in square meter prices across all key categories. For example, in new buildings outside the C+ area, the square meter price has increased in both the primary market (up to €2778 per square meter) and the secondary market (up to €1993 per square meter). Similarly, the indoor price has increased in the primary market of new projects in the C+ area, reaching €3478 per square meter.

Average transaction amounts

As the share of standard apartments increases, the average transaction amount has fallen below €80,000 for the first time since 2021. It is important to note that in the third quarter, the average transaction amount for apartments in pre-war buildings outside the C+ area has significantly decreased. The only segment where the transaction amount is distinctly rising, approaching €150,000, is new projects outside the C+ area.

New projects with the most transactions

From June to August, the highest transaction numbers in new projects were recorded in the ‘Mārpagalmi’ (Āgenskalns), totaling 73 transactions. The second and third highest number of transactions were registered in new projects ‘Ābeļziedu terases’ (Teika) and ‘Tekstiliana’ (Torņakalns), each with 13 transactions. The top five projects with the highest number of transactions are completed by ‘Čiekuru mājas’ (Mežciems) with 12 transactions and Krāsotāju iela 13 (Avoti) with 11 transactions.

Largest transactions recorded in August

In August, the largest apartment transaction was registered at Ausekļa Street 14 for 780 000 EUR. The next largest apartment transactions were concluded at Strēlnieku Street 5 for 713 500 EUR, Strēlnieku Street 8 for 502 000 EUR, Kuģu Street 26 for 495 000 EUR and Rūpniecības Street 21 k-3 for 467 123 EUR. 

Note: Not all transactions in August have been recorded.

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