Luxury real estate in Latvia: the pace of sales and demand leaders
Exclusive apartments in Riga – a piece of goods, not having a large share in the overall sales market. Nevertheless, the best deals from time to time find their buyers, regardless of any peripeteia of demand. Our colleagues from the magazine m2 and from the portal varianti.lv analyzed the pace of sales of metropolitan real estate worth from € 400 thousand over the past ten years and identified the flagships of the market.
For the period from 2010 to 2018, 293 purchases of apartments were registered in the capital of Latvia, the cost of which was € 400 thousand and above. In 24 cases, the transaction budget exceeded one million euros.
The unofficial flagship of the premium market for metropolitan apartments in 2018 was the residential complex River Breeze Residence. 48 housing units are offered to buyers, and by the beginning of last spring, one fifth of them were sold. With current demand, this is a good result.
A confirmation of the special role of the project for the elite segment of Riga can be the fact that of the four sales of apartments for one million euros and above committed in 2018, three were registered at River Breeze Residence at once. The current year began successfully for him: the complex held the two most expensive deals with Riga apartments in the first quarter of 2019.
So, in February, the apartments with a total area of 284.6 square meters officially became the property of the new owner. m overlooking the Daugava and the old city. The purchase price (excluding underground parking) was € 1,159 million. Following this, in March, the Land Record recorded a sale for € 720,000 of a two-story townhouse located on the first floors of the complex. As a result, by mid-spring only two apartments remained for buyers at River Breeze Residence, the price of which exceeds one million euros.
Real estate transactions for € 400 thousand and above
This circumstance has led m2 magazine and the varianti.lv portal to the idea of comparing the pace of sales at River Breeze Residence and other projects in recent years. To do this, transactions with apartments from € 400 thousand were analyzed. Such a boundary for the study was determined based on the price list of River Breeze Residence: only five apartments have a more modest value, all the rest are more expensive. Well, they took 2010 as a reference point: it was from July 1 that the program for granting residence permits to non-residents who bought housing started in Latvia.
Interesting statistics for 2018
Looking ahead, let’s say that in the rare year of the last decade, the share of transactions with apartments more expensive than € 400 thousand exceeded 0.5% of total sales.
According to the Cenu banka database, in 2010, the Riga Land Registry registered 13 transactions with apartments more expensive than € 400 thousand. It is noteworthy that only two of them took place in the first half of the year, and eleven after the program of providing a residence permit to non-resident buyers. Only one project compiled by us — on Auseklya Street, 4 (renovated house plus courtyard new building) —has been hit twice, in the other houses there was one transaction. Selling more expensive than a million euros happened that year only once.
In 2011, recorded 22 sales. True, none of them came close to a million euros. Three deals of the price category studied by us were in the Centra nams complex, on Republikas Laukums, 3, two in two – in houses on Ausekляa Street, 4 and Albert Street, 11.
In 2012, in the capital of Latvia for € 400 thousand and more expensive sold 37 apartments. Amounts of a million euros and above appeared four times in the Land Registry. That year, the sale of apartment property, which is considered the most expensive since 2010, was € 2.265 million paid for apartment number five on Baznicas Street, 26. Three sales in the category we studied fell on projects in houses 12 and 16a in Anthias Street, 1 on Alberta Street, two in two – on Emil Melngail Street, 2, Elizabetes, 21a and 12.
The next, 2013, year was a record year – 69 deals. Foreign participation in the expensive residential segment of Riga has reached a peak. The sales palm was intercepted by the second stage of the Gypsum Factory (Balasta dambis, 72) that debuted that year – 13 purchases – and a capitally renovated historic building on Elizabetes Street, 21a – 10 transactions. In the project Skanstes Virsotnes, four transactions were more expensive than € 400 thousand, on Emil Melngail Street, 2 – two, as well as in the Kempel House on Gertrudes Street, 23 / Akas, 8 and Brivibas Street, 19.
There were three transactions worth more than a million euros in that year, and everyone came to the Gypsum Factory. The maximum was € 2.1 million.
In 2014, the year of the change in the rules for obtaining a Latvian residence permit (the minimum value of real estate to qualify for this document was raised to € 250 thousand), 35 transactions from € 400 thousand accounted for. Among the leaders again is the second phase of the Gypsum Factory – four deals ; in the houses on Emil Melngail Street.