The market of rental apartments has bottomed out in Riga

Over January, the cost of rental apartments in Latvian capital has remained intact in comparison to December. According to local experts, the decrease of rental prices is not expected. This may indicate that the market has finally reached its bottom.

“Certain price corrections are still possible, but by no means would they be comparable to the past year decreases”, - “Chas” edition quotes Girth Krumin'sh, head of the rental department, Latio Company. Over 2009, apartment rentals in Riga have plummeted by 50%.

In January, the average monthly rentals for apartments in Riga’s downtown have reached nearly €4.80 per a sq. m., while rentals for new flats have worked out €7.30 per a sq. m. per month. Currently, prices are at the level of the last months of 2003.

The company's specialists note that during the year’s last half the availability of leased-out private home has increased in the city, demand is fairly weak, however, and the deals are only concluded with fully finished and high-quality houses in prime-locations. Such facilities are mainly rented by foreign nationals and employees of foreign embassies.

We would like to remind that typical apartments with no repairs in housing estates of Riga have appreciated by 5%, January-to-December. Rentals in new buildings have remained intact throughout January 2009.