Think Outside the Box
- October 4, 2019
As a real estate agent, are you thinking outside the box? Take Viestura Prospects example — as our latest research in collaboration…Read More
As a real estate agent, are you thinking outside the box? Take Viestura Prospects example — as our latest research in collaboration with the software and data analytics company D.Vision shows, the time you spend on selling or renting a property depends (among other things) on how savvy you are, and how smart you approach the deal.
One-room apartments on Viestura Prospects in Riga disappear from listings within an average of one and a half months — about as long as the average apartment in Riga, according to our research.
With a particular research focus on this type of properties, it has been found that even more expensive one-room apartments costing up to 1500 EUR / m2 are usually sold within two months on Viestura Prospects.
Our study analyzed 19 special-design buildings built on the left side of Viestura Prospects in the early 1970s. These are nine-story houses made of white silicate brick. Uncharacteristic for standard Riga buildings, they are located on a low relief. The buildings have one-, two- and three-room apartments of various layouts, 72 apartments in each house (8 on each floor). The area of apartments varies from 26 m2 to almost 70 m2 for particular three-room apartments.
Two-room and three-room apartments on Viestura Prospects are sold within two months on average, providing the price does not exceed 1,000 EUR per square meter. The study shows that more expensive apartments may have to wait up to three and a half months. Buyers would rather choose cheaper apartments without expensive renovation and make the repairs themselves. However, one-room apartments are increasingly being chosen by investors who are willing to pay a little more for a ready-made apartment that can be rented immediately.
On the other hand, renting an apartment or room on Viestura Prospects can be even faster than the average in Riga — within three weeks the advertisement will disappear from the database if the price is below 200 euros per month (on average, the process in the city may take about 5-6 weeks). In the category of 200 to 300 euros, apartments are usually rented out as an average in the city — during the period of a month and a half. However, for more expensive apartments, tenants are usually harder to find than the average in the city — up to two months on, in the case of Viestura Prospects, compared to an average of one and a half months.
The researchers conclude that the houses on Viestura Prospects, which are isolated from the rest of Sarkandaugava by the railway, are often perceived as Mežaparks’ properties. Some owners use this feature, perhaps deliberately, referring to the most expensive Mežaparks as a location rather than Sarkandaugava.
One-room apartments in a Viestura Prospects house usually cost from 25,000 to 31,000 euros, two-room apartments cost from 32,000 to 45,000 euros (most of them range from 32 to 36,000 euros), three-room apartments — from 50 to 62,000 euros.
In turn, the rent is 200-250 euros per month for a one-room apartment, 220-280 euros per month for a two-room apartment (the most popular are apartments for 250 euros per month), 250-300 euros per month for a three-room apartment. However, the offer of three-room apartments in the rental market is low.
The article was originally published in Dienas Bizness.