Real Estate Market Trends in Riga in Summer 2021

What are the latest news from the capital's real estate market?

• There is a rise in housing prices. Prices for new projects are increasing significantly, while prices for standard residential units are rising very slowly. Soviet-era buildings are losing their appeal due to poor technical condition. According to expert forecasts, new apartments will become more expensive by another 15% over the year. The average price per square meter as of August 2021 is 1800-2000 euros.

• There is an increase in construction material costs (by 30-50%), which forces developers to seek unconventional solutions to keep the final cost of apartments within reasonable limits. For example - by reducing apartment sizes.

• There is active use of state programs supporting young families, where grants for purchasing housing can be obtained.

• Some developers are attempting to reconstruct historic buildings through a simplified procedure in order to put apartments up for sale faster. It should be noted that construction can be carried out based on a "construction project" (approval process up to two years), or based on "renovation plans" (approval process up to eight months). In the latter case, load-bearing structures, floor slabs, and certain utilities cannot be touched. Consequently, the quality of such housing will be lower.

When purchasing property in the historic fund, we recommend contacting specialists (our company KOM-INVEST can also help with this) to verify documents and assess construction quality.

• There is interest in peripheral districts of Riga (for example, Valmiera Street, the far section of Dzirnavu Street), near the railway embankment. In the coming years, construction work on the modern "Rail Baltica" railway route will be completed. These districts, which are currently considered peripheral and underdeveloped, will develop and improve. If you purchase property here now and wait a few years, the price could increase significantly.

If you wish to purchase any good property and individual approach is important to you, if you want to communicate with a real estate agent and lawyer in your native language, contact our company KOM-INVEST! We will be happy to select a suitable property for you, answer all your questions, draw your attention to important details, arrange the transaction, process your residence permit, and manage your property.