In the second quarter, the average listed price of new housing reached 3220 euros per square meter, while the actual transaction price was 16% lower. Over the year, listing prices increased by 5%, while transaction prices even slightly decreased. Developers explain the high costs by the rise in construction expenses and bureaucracy; however, buyers are increasingly opting for more affordable options — apartments in relatively new buildings on the secondary market, renovated pre-war buildings, or series housing. Meanwhile, the supply is growing. In August, 3830 apartments were for sale in Riga, of which about 2350 were directly from developers. Since 2022, the number of available apartments in new projects has increased by approximately one and a half times, reaching the highest level in recent years. Buyers are most actively choosing new buildings priced up to 2700 euros per square meter. In most districts of Riga, the price increase in the primary market has practically stalled. On the left bank, the average transaction price is about 2680 euros per square meter, while on the right bank, it is 2610 euros. Exceptions include the Center, Skansker, Mezaparks, and Kipsala, where the figure has increased by 7% over the year, reaching 3670 euros. In the premium segment, the average price has approached 4000 euros. At the same time, 52% of transactions in new and renovated projects already pertain to the secondary market, while only 48% relate to the primary market. An apartment in a new project built a few years ago can cost almost 20% less than a similar apartment from a developer, while renovated housing in the center can be 24% cheaper than a new apartment. For buyers, the difference can amount to tens of thousands of euros. The difference in activity is particularly noticeable: on average, about 100 transactions are made per month directly with developers, while in series houses, it is almost five times more. Latio analyst Ksenia Ievleva notes that new buildings now compete not only among themselves but also with the secondary market and renovated pre-war houses. Buyers often consider time-tested housing to be more reliable than a newly built house with unclear quality and warranty conditions. Despite the large supply of unsold apartments, many developers are currently reluctant to lower prices and prefer to wait for an increase in purchasing power. Previously, they actively attracted clients with discounts, free parking spaces, kitchens, or storage rooms; however, such offers have now decreased. Latio considers this strategy risky: new phases of large residential projects with hundreds of apartments are entering the market. Therefore, competition for solvent buyers will intensify. For new buildings to become mass-accessible housing, developers will need to offer not only attractive locations but also prices that correspond to quality and good post-purchase service.
