In Q3 2022 the number of serial apartment offers in Riga increased significantly. Since the start of the year their numbers have almost doubled, according to information from Luminor Bank.
Generally the number of offers increased regardless of the number of rooms in apartments. Nevertheless, two-bedroom apartments are in demand the most.
Since the beginning of the year residents have been purchasing two and one-bedroom apartments the most. Two-bedroom apartment market also shows the largest number of offers. Three-bedroom apartment offers are not far behind.
Data indicates there is demand for relatively compact apartments and lower utility costs.
According to the head of Luminor Bank’s housing lending department Kaspars Sausais, in the last two quarters there has been a major increase in offers for four and three-bedroom apartments, adding that the number of apartments on sale is up the most in Soviet-era apartment homes.
At the same time, the size of dwellings is not always the main factor in the size of utility charges. The quality of the building plays a major role – how well it is maintained and whether there have been any energy efficiency promotion measures (door or window replacement, roof insulation, etc.) to reduce loss of heat.
Since the beginning of the year the majority of apartment sale deals have been registered in Purvciems and Ķengarags, followed by Imanta and Pļavnieki.
These districts have the biggest number of serial apartment offers. According to the expert, population numbers in these districts has doubled when compared to the start of the year. In Teika, Zolitūde and Jugla there are comparatively fewer offers and the increase is not as rapid in comparison.
Although development of new projects and renovation work is more rapid that it was several years ago, the rate of construction of new apartments is not enough to replace the old housing fund.
According to data from the Central Statistical Bureau of Latvia, 40% of dwellings in Riga are 42 to 61 years old. 21% of dwellings are 22 to 41 years old.
Only 9% of buildings in Riga were build after the year 2000.
According to the bank’s representative, improvement of heating and energy efficiency of buildings in the capital city has so far been very passive, which does not contribute to the situation.
‘If buildings were maintained in good shape using energy efficiency measures, it would help extend their lifespan and improve the value of apartments by approximately 10-20%,’ says Sausais.