YIT’s Interim report January—March 2021
In terms of apartment sales last year, the largest developers were “Bonava Latvija”, “YIT Latvija” and “Merks“, shows the” Riga and Near Pieriga New and Renovated Apartment Market Review 2020 “performed by the real estate consulting company” Colliers “.
According to the survey, in the first place last year was “Bonava Latvija”, the sales volume of which was 34.2 million euros, which makes up about 13% of the total sales volume of apartments. Last year, Bonava Latvija sold 364 apartments or 17% of the total market volume.
In second place is YIT Latvija, whose sales amounted to 33.4 million euros or approximately 13% of the market. Last year, the developer sold 293 apartments or 13% of the total market volume.
In its third place is the construction company “Merks” with a sales volume of 24.7 million euros or 10% of the total market volume. Last year, Merks sold 157 apartments or 7% of the total number of apartments sold.
Hanner, a real estate developer, was in fourth place with sales of 24.5 million euros or 10% of the market. Last year, Hanner sold 199 apartments or 9% of the total number of apartments sold.
The developer “R.Evolution” is ranked fifth with sales of 10.6 million euros or 4% of the total market. Last year, R.Evolution sold 37 apartments or 2% of the total number of apartments sold.
KBO is in sixth place with sales of 8.5 million euros and 81 apartments sold. “Sevint Latvia” is in seventh place with 7.9 million euros and 27 apartments sold. In eighth place is Home 4 Living with 6.6 million euros and 69 apartments sold.
In ninth place is EfTEN with 6.3 million euros and 56 apartments sold, while in tenth place is Hepsor with five million euros and 38 apartments sold.
According to the Colliers report, last year Bonava Latvija actively sold apartments in six projects and sales to this developer are similar to 2019. YIT Latvija is rapidly approaching Bonava Latvija, thanks to good sales figures in the Green City and Anna Park projects.
In turn, “Merks” rose to the third place from the seventh place a year earlier, thanks to the good sales results in the new projects “Merks Viesturdārzs” and “Merks Gaiļezera nami”.
Developers “Vastint Latvia” and “R.Evolution”, which specialize in the development of “premium” projects, have also entered the developer “Top 10”. Together, these two developers account for more than half of the sales of premium apartments.
Two new developers have also entered the top – Home 4 Living, which commissioned the first phase of Mārupe House and is currently building the second phase, as well as Estonian developer Hepsor, which last year completed three projects – Legato and Sentimento. Āgenskalns, as well as in the quiet center of “Strēlnieku 4B”.
According to the Colliers report, a total of 1,700 new apartments and 510 renovated apartments were sold last year, compared to 1,370 new apartments and 570 renovated apartments sold in 2019.
Although the Covid-19 pandemic led to a decline in transactions in the second quarter, the market then recovered, reaching record sales at the end of the year, according to a Colliers report.
In December, developers sold more than 310 new and renovated apartments, which meant an increase of
14% by the number of apartments sold compared to 2019 and an increase in the total value of transactions by 21%.
The total value of transactions in the primary housing market in 2020 exceeded 255 million euros, according to a Colliers report.
Due to the limited supply of economy class apartments in the market, the number of transactions in this segment in 2020 decreased significantly from more than 460 transactions in 2019 to 275 transactions in 2020.
At the same time, the number of apartment transactions in the middle segment increased significantly last year, reaching 1,430 transactions, which is an increase of 37% compared to the previous year. The average transaction value in this segment was 105,500 euros or about 1,860 euros per square meter.
A Colliers report said most of the transactions in this segment were concluded while the property was still under construction, one to one and a half years before the building was commissioned.
The premium apartment market has been stable with a slight increase in the number of transactions, the report said.
The share of non-residents in the total market fell from 12% to 10%, informs Colliers. In the premium segment, the share of non-residents’ transactions also fell from 47% to 31%, which Colliers attributes to existing restrictions on movement and travel.
The average area of apartments purchased last year increased slightly to 59.1 square meters, but Colliers does not yet attribute this to the impact of Covid-19, as most business booking contracts were made before the pandemic.