The market is still slowing down: average prices for apartments in Riga adjusted for inflation fell last year by as much as 16%, while in 2021 there was an increase of 3.6%.
In nominal terms, real estate prices are still growing slightly by 1.55% year-on-year, but the growth rate has sharply decreased compared to 2021, when this figure was almost 12%.
The volume of supply on the market is increasing. According to Arco Real Estate, in November 2022, the number of apartments for sale in Riga was 53% more compared to the same period last year. Similarly, the supply of apartments in the largest residential complexes increased by an impressive 73% over the same period.
The total volume of sales of apartments and houses in 2022 increased against the background of the opening of borders and the easing of restrictions associated with the pandemic.
Before the pandemic, foreigners accounted for about 70% of all real estate transactions in the country.
The average rent for a two-bedroom apartment worth 172,000 euros in Riga is 750 euros per month. The yield from the delivery of such an object is 5.23% per year.
Source: Global Property Guide