Jump to content
House Price Crash Forum
Sign in to follow this  
alabala

Apartment Prices Might Fall 65% In Riga

Recommended Posts

http://eng.novonews.lv/news/2008/07/07/latvia_en/005953.html

Apartment Prices Might Fall 65% in Riga

Photo: D.Kiyenok, NovoNews archive

Apartment prices have fallen 20-30% in Riga during the past year. However, real property specialists warn that the tendency will be continued.

1 of July 2008 | Tuesday

[Print version]

Apartment prices have fallen 20-30% in Riga during the past year. However, real property specialists warn that the tendency will be continued. To reach an optimal verge, the prices must go further down at least by 30%. After cancellation of the easy housing loans, the apartment prices have significantly reduced in the Latvian capital.

Latvia's biggest real estate company Balsts estimates that the apartment prices have fallen by over 20% during a year. Another real estate company said the fall went over 25%, kauppalehti.fi reports.

Head of the real property consulting firm Fidius, Ruusa Hentila said based on her own calculations that the real property prices have already fallen some 25-30% in Riga's prestigious districts like Old Riga and a calm settlement nearby.

Hentila also predicted further drop of prices within the nearest months due to the slowed economy, GDP index and salaries. "There can be 60-65%-fall, until the prices reach an adequate verge," she remarked.

Whereas the most expensive apartments cost 4,000-5,000 EUR per m2 in Riga last year, now the prices have come down to 3,000-4,000 EUR. Following Hentila, the prices will continue to fall to 1,200-1,500 EUR per M2.

Latvia has a population of 2.3M people, GDP index of the country is 20.2 billion EUR (2007), i. e. 8,900 EUR per head. The average salary equaled to 645 EUR in the first quarter of 2008.

Share this post


Link to post
Share on other sites

The same in Poland and other eastern EU countries... If you have a property there, now is the time to get out as prices are still very high, sterling is at record lows to Czech, Slovakian, Polish, Latvian, Lithuanian, Estonian, Bulgarian, Romanian and Hungarian currencies.

My advice if you really want to stay invested in property in Europe: sell now your Eastern Europe apartment and buy for the same money 2 apartments in Germany that produce double the income.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.