Property prices in Riga increased by 3.5 in April, compared to the previous month, largely due to a dramatic fall in the volume of homes for sale in the Latvian capital, according to Arco Real Estate.
The greatest monthly property price rise was recorded in Zolitude, up 5.1%, while the lowest, at 1.3%, was in Bolderaja.
The average price of a home in Riga in April was priced at £517 per square metre. Since the beginning of 2010, the average price of a standard apartment in Riga has reportedly appreciated by 13.6%.
The recent property market recovery will please property investors who previously bought property in Latvia. The Baltic state enjoyed exceptionally strong property price growth between 2004 and early 2008 after joining the European Union in 2004.
But Riga's property market has endured a torrid time over the pat two years, with prices plummeting across the city.
But a reduction in housing supply across much of Riga has helped the property market.
Maris Laukalejs of Arco Real Estate told the press: “April's price increase of 3.5% was higher than previous forecast by about 2-3 per cent.
“It is mainly explainable by increased interest in buying apartments, and the insignificant increase in proposals in recent months, or rather, the constant number of proposals. The insignificant number of proposals suggests that potential sellers are unwilling to sell their property at current market prices, and that, in turn, is explainable by forecasts of price increase in the future.”