Real estate market in Latvia in the first half of 2006

12.09.2006

On the basis of data from the Real Estate Market Information System of the State Land Service the Central Statistical Bureau has made a conclusion that dwelling sales is gaining momentum on the real estate market. Of the total number of real estate sales transactions, the share of transactions in dwellings reached 46% in the 1st half of 2006 compared to 44% in the 1st half of 2005. This is also illustrated by the rising dwelling construction output. In the 1st half of 2006 residential buildings with a total floor space of 312 thsd m2 were commissioned (212 thsd m2 in the
1st half of 2005).

Real estate sales structure in the 1st half of 2006

By the number of transactions

By the total value of transactions




Sales transactions in buildings with land in the 1st half of 2006

 

 

In sales transactions of residential buildings with land, the value of buildings accounted on average for 88% of the total cadastral value but the value of land represented 12%. In sales transactions of non-residential buildings with land, the value of non-residential buildings with land represented on average 72% of the total cadastral value but the value of land accounted for 28%.

The highest average value per sales transaction in residential buildings with land in the 1st half of 2006 was in Jūrmala (LVL126 thsd), followed by Riga (LVL 122 thsd) and Liepāja (LVL 70 thsd.

In the 1st half of 2006 the average price per square metre of the total floor space of a one-dwelling building with a total floor space from 100 to 300 m2 and with land area of up to 1 hectare was LVL 863 in Jūrmala, LVL 335 in Riga, LVL 278 in the district of Riga and LVL 178 in the district of Ogre.

 Dwellings sold in Latvia in the 1st half of 2006 by the number of rooms

 


Average price per square metre of the total floor space of the dwellings sold in Latvia in the 1st half of 2006
 

 

There were on average 2.1 rooms and the total floor space was 52 square metres per dwelling sold.

A peculiarity of the dwelling market in Latvia is the extremely sharp difference in prices between Riga, some towns and rural municipalities in the vicinity of Riga and the remaining territory of the country. The overall value of real estate continues to go up.

Average dwelling prices in Latvian cities and towns where at least 50 dwellings were sold in the 1st half of 2006

Cities and towns

Average price per dwelling, thsd LVL

Average price per m2 of the total floor space

Lats

per cent of the 1st half of 2005

Jūrmala

28,3

521

248

Rīga

24,5

455

172

Ogre

17,3

322

156

Salaspils

13,8

290

164

Cēsis

12,6

241

147

Jelgava

12,1

242

149

Dobele

8,6

159

248

Valmiera

8,2

170

160

Liepāja

7,7

155

176

Aizkraukle

7,0

147

163

Ventspils

6,7

140

122

Tukums

6,3

120

115

Kuldīga

6,2

136

166

Daugavpils

5,1

111

121

Rēzekne

4,4

94

165

Jēkabpils

3,9

84

98

Sale of land by the land use target in the 1st half of 2006

Average value of transaction, thsd LVL

Land area sold on average per transaction, ha

Average price per ha of land area, thsd LVL

Per cent distribution of transactions

Land area sold

26,3

6,5

4,0

100

of which for:

agriculture

24,4

12,0

2,0

44

forestry

17,8

10,2

1,8

11

construction of one- or two-dwelling family residential house

24,6

0,2

104,7

34

multi-dwelling residential houses

55,0

0,2

347,0

2

business institutions

96,1

0,5

195,7

2

industrial buildings

78,1

1,1

68,1

2

other

22,1

0,8

26,1

5

 

Prepared by the Investment and Real estate Statistics Section
Tālr.7366969
Ilgvars Kaparkalējs