Latvian Real Estate Market Overview
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LATVIAN REAL ESTATE MARKET OVERVIEW YEAR 2006 ARCO REAL EST Contents CONTENTS Introduction 3 ATE General economical indicators 4 Sale of apartments • LATVIAN REAL EST Sale of apartments 11 Differencies between dwelling areas 14 Low-Rise Wooden Housing 14 Apartments in the Central Part of Riga 15 New dwelling houses 18 Apartment market in the vicinity of Riga 23 Summary of apartment market 24 ATE MARKET OVERVIEW YEAR 200 Forecasts for 2007 34 Hire of residential premises Hire of residential premises 36 Rent of private houses 38 Forecasts for 2007 39 One-family private houses One-family private houses 40 Vicinity of the Riga City 40 Riga 40 Categories of private houses 42 New living house villages 43 6 Forecasts for 2007 45 Land properties for erection of one-family houses Office premises Land properties for erection of one-family houses 46 Office premises 57 Land plots in the Riga City 46 Forecasts for 2007 58 Land plots in the vicinity of Riga 47 House properties Forecasts for 2007 49 House properties 59 Agricultural land in Latvia Dwelling houses 59 Land for recreational needs 50 Hotels 59 Land for agricultural needs 50 Office buildings 60 Land for timber cutting purposes 50 Forecasts for 2007 61 Land purchase for resale 50 Real estate market in the Latvian regions Forecasts for 2007 51 Jūrmala city 62 Land properties for industrial and commercial Jelgava, Zemgale Region 63 buildings Sigulda 65 Land for commercial buildings 52 Saulkrasti 66 Land properties for construction of produc- Cesis, Vidzeme Region 67 tion and logistics or industrial park areas 52 Liepāja 69 Forecasts for 2007 54 Ogre 70 Market of sales premises Eastern Vidzeme 72 Market of sales premises 55 Forecasts for 2007 56 1 ARCO REAL EST Contacts ARCO REAL ESTATE Lāčplēša 20a, Riga, LV-1011 ATE T:el. +371 6 7 365555 Fax :+371 6 7284423 • E-mail : [email protected] LATVIAN REAL EST ARCO REAL ESTATE CĒSIS BRANCH Bērzaines 6, Cēsis, LV-4101 Tel.: +3716 4122373 Fax : +3716 4122317 E-mail: [email protected] ATE MARKET OVERVIEW YEAR 200 ARCO REAL ESTATE SIGULDA BRANCH Ausekļa9 , Sigulda, LV-2150 Tel.: +3716 7973737 Fax6 : +371 7973732 E-mail: [email protected] ARCO REAL ESTATE JELGAVA BRANCH Driksas 4-205, Jelgava, LV-3001 Tel.: +371 6 3028245 Fax6 : +371 3012252 E-mail: [email protected] ARCO REAL ESTATE SAULKRASTI BRANCH 6 Ainažu 5, Saulkrasti, LV-2160 Tālr.: +3716 7821678 Fakss: +3716 7821685 E-mail: [email protected] ARCO REAL ESTATE JŪRMALA BRANCH Jomas 65/67, Jūrmala, LV-2015 Tel.: +371 6 7146333 Fax6 :+371 7146332 E-mail: [email protected] ARCO REAL ESTATE LIEPĀJA BRANCH Tirgoņu 22/17, Liepāja, LV-3401 Tel.: +371 6 3488816 Fax6 :+371 3488815 E-mail: [email protected] ARCO REAL ESTATE OGRE BRANCH Tīnūžu 1, Ogre, LV-5001 Tel.: +371 6 5067770 Fax6 :+371 5067778 E-mail: [email protected] 2 www.arcoreal.lv ARCO REAL EST Introduction LATVIAN REAL ESTATE MARKET OVERVIEW, YEAR 200 6 ATE The market analysis overview prepared by SIA „Arco Real Estate” provides a concentrated • information on the Latvian real estate market in LATVIAN REAL EST year200 6 . The overview provides a brief report on the main sectors of the real estate market: • sale and purchase of apartments; • building of new multi-apartment houses; • hire of residential premises; ATE MARKET OVERVIEW YEAR 200 • one-family private houses; • land estates (for building of one-family houses); • agricultural land; • land estates (for construction of industrial and public buildings); • sales space market; •.office space rental market The overview of the real estate market analysis shows the values of the estates of the Proposals, comments or questions should be respective market sectors at the end of the addressed to the ValuationDepartment of SIA reporting year as well as provides information „Arco Real Estate”: 6 on the events in the sector inyear 200 6 . Rīga, LāčplēšaStreet 20a Tel . 6 7365556; fa x 6 7365557 Sources of information used for the analysis E-mail : [email protected] performed are: the real estate transactions Head of the Valuation Department data base of SIA „Arco Real estate”, Māris Laukalējs information provided by cooperation partners E-pasts: [email protected] and publicly available information sources as Market Analyst of the Valuation Edgars Bondars well as information aggregated by the Central E-pasts: [email protected] Statistics Bureau, the Land Register and the Bank of Latvia. The market analysis overview is intended for a broad target audience, whose activities or interests are connected with the Latvian real estate market, including private persons, investment funds, real estate companies, commercial banks and governmental institutions. © “Arco Real Estate”Ltd. , 200 7 In case of quoting or publishing agreement of “Arco Real Estate” Ltd. is obligatory. 3 ARCO REAL EST Overall economic indicators CHARACTERISTICS OF LARGEST CITIES OF LATVIA ATE Rīga Daugavpils Liepāja Jelgava Jūrmala Ventspils distance from Riga 229 217 42 22 184 • LATVIAN REAL EST amount of inhabitants 728000 109000 86000 66000 56000 44000 amount of inhabitants 884000 149000 130000 103000 56000 58000 in the city and region Rēzekne Valmiera Ogre Jēkabpils Cēsis Tukums distance from Riga 224 107 36 143 87 68 amount of inhabitants 37000 27000 26000 26000 19000 19000 amount of inhabitants 78000 59000 63000 53000 57000 55000 in the city and region ATE MARKET OVERVIEW YEAR 200 NUMBER OF TRANSACTIONS IN THE CITIES OF LATVIA 2003-2006 25000 22340 20000 15000 12857 10000 6 4426 5000 3445 3481 2339 2718 1836 1996 1583 1783 1426 1723 0 Rīgas Rīgas Daugavpils Liepāja Jelgava Jūrmala Ventspils Rēzekne Valmiera Ogre Jēkabpils Cēsis Tukums pilsēta rajons 2006 2005 2004 2003 NUMBER OF TRANSACTIONS IN LATVIA (2001.- 2006.) 90000 80000 76468 70000 63947 60539 60000 49496 50000 39017 40000 29842 30000 20000 10000 0 2001. 2002. 2003. 2004. 2005. 2006. 4 Overall ARCO REAL EST economic indicators RIGIBOR 3 AND 6 MONTHS INTEREST RATE ON LOANS 2004-2006 ATE 5,5 • 5 LATVIAN REAL EST 4,5 4 3,5 3 ATE MARKET OVERVIEW YEAR 200 2,5 2 05.01.2004.13.02.200425.03.2004.11.05.2004.01.07.2004.06.08.200417.09.200429.10.200413.12.200425.01.200508.03.200521.04.200503.06.200519.07.200530.08.200511.10.200523.11.200505.01.200616.02.200630.03.200617.05.200629.06.200610.08.200621.09.200602.11.200618.12.2006 3 months 6 months NUMBER OF TRANSACTIONS IN LATVIA (2001- 2006) September. 2006 December 2000 6 Short-term 1-5 years Above 5 years LONG TERM LOANS TO PRIVATE PERSONS (million LVL) 4000 3469,4 3500 3000 2500 2261,6 2000 1500 1075 1000 694,3 385,2 500 209,2 80,2 138,1 * September2006 0 1999. 2000. 2001. 2002. 2003. 2004. 2005. 2006.* 5 ARCO REAL EST Overall economic indicators MORTGAGE LOANS GRANTED BY LATVIAN COMMERCIAL BANKS (million LVL) ATE • 2006.* 4507,6 LATVIAN REAL EST 2005. 2806,7 2004. 1392,2 2003. 772,6 2002. 404,9 ATE MARKET OVERVIEW YEAR 200 2001. 235,9 2000. 111,5 * September 2006 1999. 56,8 0 1000 2000 3000 4000 5000 NUMBER OF SIGNED MORTGAGE CONTRACTS IN LATVIA 100000 91716 90000 77601 6 80000 70000 62707 60000 47699 50000 40000 35675 30000 25094 20000 10000 0 2001. 2002. 2003. 2004. 2005. 2006. 6 Overall ARCO REAL EST economic indicators NUMBER OF SIGNED MORTGAGE CONTRACTS IN LATVIA ATE 30485 • 26011 Rīgas pilsēta 20911 LATVIAN REAL EST 6155 13308 10234 Rīgas rajons 7667 1795 3261 2386 Daugavpils 1958 ATE MARKET OVERVIEW YEAR 200 781 4945 3918 Liepāja 3364 1066 3974 3974 Jelgava 3114 1080 2440 2440 Jūrmala 2111 686 1723 1723 Ventspils 1412 6 730 1848 1490 Rēzekne 1159 625 2530 2230 Valmiera 1894 1006 3226 2889 Ogre 2409 989 1741 1395 Jēkabpils 988 460 2067 1967 Cēsis 1572 1385 1909 1845 Tukums 1709 910 0 5000 10000 15000 20000 25000 30000 35000 2006 2005 2004 2001 7 ARCO REAL EST Overall economic indicators HOUSING FUND AT THE END OF YEAR (million m² ) ATE 70,00 • 57,00 56,05 LATVIAN REAL EST 60,00 54,90 55,40 52,90 52,70 53,40 50,00 40,00 24,80 30,00 21,30 22,60 23,60 23,90 24,30 19,90 ATE MARKET OVERVIEW YEAR 200 20,00 10,00 0,00 1990 1995 2000 2002 2003 2004 2005 Housing fund (milion m²) Average living area per capita, m² AVERAGE LIVING AREA PER ONE INHABITANT IN YEAR 2005 ()m² 24,00 Ventspils 6 22,50 Rēzekne 28,40 Liepāja 24,50 Jūrmala 23,10 Jelgava 21,00 Daugavpils 23,40 Rīga 24,80 Latvijā 20,00 22,00 24,00 26,00 28,00 30,00 Average living area per capita, year 2005, m² Average living area per capita, year 2004, m² Average living area per capita, year 2003, m² 8 Overall ARCO REAL EST economic indicators AVERAGE TRANSACTION AMOUNT OF ONE APARTMENT YEAR 2004/2005 ATE Average transaction amount of one apartment year2004/2005 (LVL) • average one-room two-room three-room LATVIAN REAL EST 2004 2005 2004 2005 2004 2005 2004. 2005 Latvia 7700 9800 4300 6300 6700 8100 9800 12200 Rīga 12100 17900 6100 10000 10500 14700 15000 22400 Daugavpils 3900 4000 2700 2400 3600 3900 5000 5000 Jelgava 4900 8700 3300 4600 5200 7100 5600 7600 Liepāja 4100 5200 2100 2500 3800 4700 5500 7300 Rēzekne 2800 3200 2000 2000 2700 3300 3600 4100 ATE MARKET OVERVIEW YEAR 200 Ventspils 4000 5200 2300 3500 4000 5000 6000 7100 AVERAGE PRICE PER M² OF APARTMENTS SOLD YEAR 2004/2005 ()LVL/m² Rēzekne Liepāja Ventspils Daugavpils 6 Jelgava LATVIJA Rīga 0 50 100 150 200 250 300 350 400 Average price per m² of apartments sold in 2005,LVL Average price per m² of apartments sold in 2004, LVL NUMBER OF THE APARTMENTS CONSTRUCTED IN LATVIA (1990-2005) 2005.