Latvia Price History-Latvian house prices rising, GDP growth positive | Global Property Guide

Latvian house prices rising, GDP growth positive

Residential real estate prices continue to rise in Latvia especially in the capital Riga, as economic growth returns. A year after the crisis bottomed, average apartment prices in Riga are up 26% y-o-y to September 2010, at €614 per sq. m., according to Arco Real Estate, a leading Baltic real estate agent. Price rises have slowed since April, but each month brings a gain.

• One-bedroom apartments surged 33% during the year to October 1, 2010, to €662 per sq. m.t.
• Apartments with 4 bedrooms or more registered a 21% increase to €572 per sq. m., over the same period.

After one of the worst recessions in the EU, Latvia’s economy grew by an annualized rate of 2.7% in Q3 2010, according to the Central Statistical Bureau- the first positive GDP change after nine quarters decline, which caused the economy to contract by 25%, according IMF estimates.

The recovery came after the government implemented an internal devaluation through severe wage cuts and similar measures. The policies paid off with improvements in Latvia’s competitiveness which led to a strong rebound in

Latvia Price History-Latvian house prices rising, GDP growth positive | Global Property Guide