New apartment prices drop while overall housing market rises

Although there is frequent talk of economic difficulties, the housing market remains active with rising prices. However, the latest data for the first quarter of this year reveals an interesting trend: overall apartment prices in Latvia have increased compared to the same period last year, and this growth is quite significant.

Delving into the statistics, it becomes clear that the price increase is mainly driven by series-built apartments. In contrast, prices in new projects have actually decreased over the quarter. This phenomenon raises the question of whether new project prices have reached a level that buyers can no longer afford.

The transaction structure clearly indicates the limited purchasing power of the population, which may be one reason for the cooling of the new project market. If this trend continues, we may see further price declines in this segment in the near future.