New apartment pre-sale price has increased by 30% more than a year ago.
After the war in Ukraine started, the projects delivered to the market in 2022 and the number of new projects that entered construction stage has decreased, indicating that there might be less apartments added to the market in 2023.
Registered sales in 2022 decreased by 10% compared to 2021, however decrease came solely from renovated project sales. New apartment sales in Riga remain constant at around 1,400 apartments per year while new apartment sales in Pieriga continued to increase reaching 384 transactions in 2022.
Currently there are around 3000 apartments under construction, however 38% of them are already pre-sold. At the same time, it is noteworthy that pre-sale rate has started its decrease in the beginning of 2023. Developers that continue to develop have to face notable construction material increase, which has led to average pre-sale price being 30% higher in Q4 2022 than a year ago.
According to Colliers data, asking price for middle class apartment is currently 2,630 EUR/sqm, while for business class apartment it is 3,100 EUR/sqm.
While Colliers Latvia Residential valuation expert points out: As more than 60% of all registered transactions of 2022 were pre-sales from previous periods being registered, registered sales price increase in Q4 2022 compared to Q4 2021 is just 7%.
“For the fourth consecutive year Bonava reached the highest new apartment sales volumes, however YIT managed to reach the highest number of apartments sold per year. Top 3 developers Bonava, YIT and Merks have 13%, 11% and 7% market share in 2022 accordingly, compared to 15%, 5% and 4% in 2021. Bonava, YIT, Merks and Kaamos also continued to actively expand their land portfolios in 2022,” says Agija Verdina, Director of Advisory services at Colliers Latvia
Top developers in Latvia, 2022
|
Nr |
Developer |
mEUR |
Sold apartments |
|
1 |
Bonava |
36.0 |
266 |
|
2 |
YIT |
31.9 |
281 |
|
3 |
Merks |
20.7 |
142 |
|
4 |
R.Evolution |
16.0 |
42 |
|
5 |
Vastint |
11.5 |
51 |
|
6 |
Home 4 living |
10.8 |
98 |
|
7 |
Unico |
10.2 |
97 |
|
8 |
AFI Europe Latvia |
8.4 |
75 |
|
9 |
Kaamos |
7.8 |
71 |
|
10 |
Interbaltija |
6.7 |
62 |
TOP projects 2022 in Latvia
|
Nr |
Project |
Developer |
mEUR |
Sold apartments |
|
1 |
Silvas Nami |
YIT |
12.2 |
115 |
|
2 |
Dreilinga Mājas |
Bonava |
12.1 |
91 |
|
3 |
Vertikāles |
Bonava |
10.8 |
67 |
|
4 |
Mārupes nami |
Home 4 Living |
10.8 |
98 |
|
5 |
Deglava Gleznotāju rezidence |
Unico |
10.2 |
97 |
|
6 |
Safrāns |
YIT |
9.9 |
77 |
|
7 |
Merks Duntes Zīles |
Merks |
9.7 |
77 |
|
8 |
Green City |
YIT |
8.8 |
82 |
|
9 |
Trebu Home |
AFI Europe Latvia |
8.4 |
75 |
|
10 |
Lindenholma |
Vastint |
8.3 |
42 |
More info:
Anastasija Ruža
Colliers Baltics - Marketing & PR department
anastasija.ruza@colliers.com
+371 29262468
