OREANDA-NEWS. On 11 August 2008 was announced, that when comparing the 1st half of 2008 with the same period of the previous year, the number of deals of the real estate company “Balsts” has increased by 8.2%. The largest increase has been in rental and lease segments – if compared to the previous year, the number of deals has grown by 25%.

In July, the average prices of standard design apartments have decreased by another 1.7%, and at present the average price is EUR 1291/m2. In the segment of secondary apartments there is a tendency of owners of the apartments of becoming perfectly aware of the existing situation (taking into account both the cost of living and the economic situation in the country), and they are instantly ready to sell their property for the real market price.

If a couple of months ago proposals of value under the market value were comparatively rare, then at present there are up to five such proposals in each region. For example, in Purvciems a three-room apartment requiring renovation whose area is 75 square metres in houses of 119th series can be purchased at present for a price of EUR 81,000 to 85,000.

During the last few months there has been an increasing interest in private houses in the suburban Riga. As prices are decreasing, families which some time ago considered the opportunity to purchase an apartment are now showing their interest in acquiring a house. Supply in this segment is large, and prices are very attractive.

 “Prices of properties are really good, and deals are taking place. Land Register data show that in July, compared to June, the number of deals could increase by at least 35%. The largest contribution of the abolition of first instalment at the amount of 10% is that it will help improve the psychological attitude among the potential buyers”, says Aigars Zariтр, President of the “Balsts” Management Board.