Key trends in the new construction market for the first seven months of 2024 are as follows:
1. Decline in new apartment sales: in the first half of 2024, the number of sold apartments in new projects decreased by 37% compared to the same period in 2023. A total of 860 apartments were sold, which represents a notable decline compared to 1,375 apartments a year earlier.
2. Sales structure: of the 860 apartments sold, 575 transactions involved new construction in Riga itself, 86 involved new construction in areas adjacent to the capital, and the remaining 199 apartments were located in reconstructed buildings. This indicates that new construction apartments are more in demand than apartments in reconstructed buildings.
3. Growing interest in the secondary market: while sales of new apartments are declining, there is a growing interest in the secondary market. The number of transactions in the secondary market for apartments in new construction buildings that are five or more years old increased by 16% - to 799 transactions. This is due to the fact that secondary market prices are lower, but the quality of apartments is no worse than in newly built houses.
4. Stable prices: prices in the secondary market remain stable at the level of 1,930 euros per square meter. For comparison, the price level in new developer projects is 2,600-3,000 euros per square meter. This explains why many buyers choose secondary market apartments.
5. Competition among developers: the new apartment market remains a buyer's market, where developers actively compete for customer attention. They offer various bonuses and promotions to attract buyers. By late summer 2024, approximately 1,700 completed and ready-to-move-in apartments were available on the primary market, while approximately 2,440 apartments were under construction.
Information source: https://www.varianti.lv/ru/blog/detail/article/9989
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