Examining data from the Kurzeme District Court and the Liepāja Land Registry on property registration requests based on purchase agreements over the past four years, we can see that the number of transactions has remained relatively stable. In fact, in 2023, compared to 2022, the number of transactions even increased. Similarly, when looking at the number of registered mortgage-backed loans, it is evident that 2023 saw the highest number of such transactions in the past four years.
What About Apartments? Has Their Sales Volume Remained the Same?
The number of transactions has not changed significantly: 2020 – 1,003 transactions, 2021- 1,031 transactions, 2022 – 932 transactions, 2023 – 960 transactions. However, there has been a notable increase in the total transaction value of apartment sales in Liepāja: 2020 – €19.359 million, 2021 – €25.426 million, 2022 – €26.732 million, 2023 – €32.413 million
(Data sourced from the State Land Service’s open data platform – data.gov.lv)
This indicates that property prices in Liepāja are rising, with the average property value increasing each year. However, looking at the end of 2023 and the beginning of 2024, a slight price correction is noticeable. Analyzing current real estate listings, prices have dropped, but market activity has not declined. A substantial number of transactions are still taking place, particularly for properties where sellers have adjusted their listing prices to align with market trends.
For comparison in January 2023 75 purchase agreement transactions were registered in the Kurzeme District Court’s Liepāja Land Registry and in January 2024, 80 purchase agreement transactions were registered. This suggests that the market remains just as active as it was a year earlier.
Mid-range apartment sales are declining. There is a noticeable drop in the number of mid-range apartments being sold, which is likely due to the current mortgage lending conditions and high EURIBOR rates, both of which contribute to an overall price decline. However, there are already discussions about a possible reduction in EURIBOR rates later this year, which could increase market activity in this segment.
In Liepāja, there remains strong demand for modern or non-standard housing. This is especially true given that no new apartment projects have been developed in the city for some time, and many renovated properties are not being sold but are instead entering the short-term or long-term rental market. As a result, the current supply does not meet demand, creating favorable conditions for new housing developments. Of course, a key factor remains the potential sale price of new projects. However, given the prices currently being paid for secondary market properties, they are not far from the prices of some apartments in new developments in Riga.
Private house and land market remains active. The market for private houses and land in Liepāja is also quite active. Private house sales in 2022 – 133 transactions and in 2023 – 109 transactions. Land transactions (undeveloped land) in 2022 – 93 transactions, in 2023 – 132 transactions. It is likely that with a greater supply, these numbers could be even higher.
In conclusion, Liepāja’s real estate market remains active and appealing for new investments. All indicators suggest that, unless macroeconomic conditions worsen and EURIBOR rates decrease, the overall value of real estate in Liepāja is likely to continue rising, potentially gaining even more momentum.
Oskars Dombrovskis, Owner of AVER Kurzeme
