Buying property in Latvia in 2025: worth it?

Authored by the expert who managed and guided the team behind the Latvia Property Pack

Everything you need to know before buying real estate is included in our Latvia Property Pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Latvia. If you'd like to learn more about us, you can check our presentation page.

What types of properties are available in Latvia and how do they differ?

In Latvia's 2025 property market, you can purchase apartments, houses, and land plots, each offering distinct advantages depending on your investment goals and lifestyle preferences.

Apartments dominate urban markets like Riga and Jurmala, typically found in multi-story buildings ranging from compact studios to spacious multi-bedroom units. These properties are easiest to maintain and rent out, making them ideal for investors seeking steady rental income with minimal upkeep responsibilities.

Houses include detached properties, semi-detached townhouses, and luxury villas, predominantly located in suburban areas like Pieriga or rural regions. These offer more privacy, outdoor space, and customization potential but require higher maintenance and typically have lower rental yields compared to apartments.

Land purchases allow for custom development but come with significant bureaucratic hurdles for foreign buyers. Foreigners can buy land with existing structures but need municipal permission for vacant plots, and farmland or forest purchases face strict restrictions.

The key difference lies in investment flexibility: apartments offer liquidity and easier management, houses provide lifestyle benefits and land appreciation potential, while raw land offers development opportunities but requires navigating complex regulations. It's something we develop in our Latvia property pack.

How have property prices evolved and what's the forecast for Latvia's market?

Property prices in Latvia have shown robust growth, with the House Price Index climbing 8.06% year-on-year by the end of 2024.

Current pricing varies significantly by location and property type. In Riga's city center, apartments average €2,577.81 per square meter, while areas outside the center offer more affordable options at €1,622.75 per square meter. Jurmala commands premium prices at €3,200/m² for city center apartments, reflecting its luxury coastal market status.

Looking ahead to the remainder of 2025, experts forecast moderate but steady growth of 3-7% annually, particularly in urban areas where demand continues to outpace supply. This growth trajectory is supported by increased construction activity focusing on energy-efficient developments and eased mortgage conditions encouraging more buyers to enter the market.

Should you buy or rent property in Latvia based on your timeline?

The decision between buying and renting in Latvia in 2025 hinges primarily on your intended length of stay and financial objectives.

Buying property makes financial sense if you plan to stay in Latvia for five years or longer. With property values rising 8% annually and the market showing consistent stability, purchasing offers both capital appreciation and the potential for EU residency through the €250,000 investment program. Long-term ownership also provides security and eliminates the uncertainty of rental price fluctuations.

Renting suits those planning shorter stays or valuing flexibility, particularly digital nomads and temporary expats. Monthly rental costs in Riga range from €500 for a one-bedroom city center apartment to €900 for a three-bedroom unit, making it more affordable in the short term when factoring in purchase transaction costs of 3.75-5%.

Current rental yields of 2.8-5.5% gross annually are moderate but declining slightly in Riga due to increased supply. This trend actually benefits renters, as more inventory creates competitive pricing and better tenant negotiating power.

For investment purposes, the break-even point typically occurs around year five when considering transaction costs, maintenance, and opportunity costs versus rental expenses.

What are the key trends shaping Latvia's real estate market in 2025?

Latvia's real estate market in 2025 is experiencing dynamic growth driven by urbanization, foreign investment, and regulatory changes.

Demand remains robust, particularly in Riga and Jurmala, where economic growth and urban migration continue to fuel property purchases. Foreign buyers, predominantly from Russia, China, Ukraine, and neighboring Baltic states, account for up to 70% of transactions in premium segments, maintaining strong international interest despite geopolitical tensions.

Construction activity has intensified with developers focusing on energy-efficient, modern buildings to meet evolving buyer preferences. However, new supply still lags behind demand in prime locations, creating upward pressure on prices and maintaining seller-favorable market conditions.

Regulatory shifts in 2025 include new cadastral value calculations aimed at fairer property taxation, though implementation has caused some initial confusion among property owners. Mortgage conditions have eased significantly, with banks offering more competitive rates and higher loan-to-value ratios to stimulate domestic buying.

Short-term rental regulations are tightening in tourist hotspots like Riga's Old Town and Jurmala to address housing shortages and manage tourist influx, potentially affecting investment strategies for buyers targeting Airbnb income.

What's the step-by-step process for buying property in Latvia as a foreigner?

Purchasing property in Latvia as a foreigner follows a structured process that typically takes 2-4 weeks without mortgage financing.

Start by searching for properties through online portals like ss.lv or city24.lv, or engage a local real estate agent who can navigate language barriers and market nuances. Once you've identified potential properties, arrange viewings either in person or virtually to assess their condition and location.

Before making an offer, you'll need to open a Latvian bank account, which is required for transactions and any future residency applications. When you've chosen a property, sign a preliminary agreement and pay a 10% deposit to secure it.

The due diligence phase is critical - hire a notary or lawyer to verify clear title, check for encumbrances, and ensure legal compliance. For land or house purchases, foreign buyers must obtain municipal permission, which can add 1-2 weeks to the timeline.

After receiving approvals, sign the final purchase contract and pay the remaining balance plus associated costs including transfer tax, VAT for new builds, and notary fees totaling 3.75-5% of the purchase price. The final step involves registering ownership in the Land Book and receiving your official ownership certificate.

Don't forget to transfer utility contracts to your name to complete the process. This structured approach is covered comprehensively in our Latvia property pack.

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Where should you search for properties and which platforms work best?

Finding the right property in Latvia requires using a combination of online portals, real estate agencies, and local networks.

The most effective online platform is ss.lv, Latvia's dominant property portal known for realistic pricing and extensive listings across all property types and regions. City24.lv specializes in new builds and professional agent listings, while nopo.lv offers a modern, user-friendly interface with advanced search filters.

For rental market insights, rentinriga.lv provides valuable data on rental prices and tenant preferences. Agency-specific portals like latio.lv and cityreal.lv offer curated selections with detailed property information, while domimaps.lv excels with its map-based search functionality.

Local real estate agencies provide invaluable market knowledge, especially for foreign buyers unfamiliar with Latvian property regulations. They handle negotiations, arrange viewings, and guide you through legal requirements - services particularly valuable for transactions above €100,000.

Local networks and word-of-mouth remain useful for finding off-market deals, particularly in rural areas, though these require Latvian language skills and established local connections to access effectively.

What can different budgets buy in Latvia's property market?

Your budget determines not just what you can buy in Latvia, but where you can buy it.

With €50,000, you can purchase small apartments in regional cities like Daugavpils or Liepaja, typically 30-40m² Soviet-era units requiring renovation. This budget also covers basic land plots outside major cities, though development costs would be additional.

A €150,000 budget opens up quality options including modern 1-2 bedroom apartments in Riga's outskirts or well-maintained properties in city centers of smaller towns. You could also afford a small detached house in regional areas or older properties in need of updating closer to major cities.

At €300,000 and above, premium properties become accessible including modern apartments in prime Riga locations, spacious family homes in desirable suburbs like Pieriga, or renovated historical properties. This range includes properties suitable for the residency-by-investment program.

Budgets exceeding €500,000 enter luxury territory, encompassing beachfront villas in Jurmala, penthouse apartments in Riga's city center, or substantial estates with extensive land in prestigious neighborhoods.

What mistakes do foreigners commonly make when buying Latvian property?

Foreign buyers in Latvia often stumble over post-Soviet property complexities and market misunderstandings that can prove costly.

The most critical error involves unclear land titles stemming from Latvia's restitution history, where properties may have disputed ownership or unresolved claims from previous owners. Always conduct thorough title searches through the Land Book to verify clean ownership history.

Many foreigners don't realize that buildings and land can have separate ownership in Latvia. You might buy a house only to discover you must lease the land beneath it from another owner, creating ongoing costs and potential conflicts.

1. Skipping professional due diligence by not hiring a lawyer or notary, exposing buyers to fraud or hidden property debts
2. Overestimating rural property potential - declining populations and poor infrastructure make these properties difficult to sell or rent
3. Relying solely on online listings without visiting properties, leading to overpaying or buying in undesirable locations
4. Assuming mortgage eligibility - foreign buyers face stricter lending criteria and may need larger deposits
5. Underestimating transaction costs which add 3.75-5% to the purchase price through taxes and fees

Avoiding these pitfalls requires patience, professional assistance, and thorough research before committing to any purchase.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Latvia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How does Latvia's cost of living impact your property investment?

Latvia offers one of Europe's most affordable living costs, significantly enhancing the value proposition for property investors and residents.

A single person needs approximately €1,325 monthly to live comfortably in Latvia, while a family of four requires around €3,101. These figures include rent, making Latvia 37% less expensive than the UK and considerably cheaper than Western European standards.

Housing costs vary by location, with Riga city center one-bedroom apartments renting for €500 monthly, while similar properties outside the center cost €350-400. Utilities for an 85m² apartment average €259 monthly, including heating, electricity, water, and internet.

Daily expenses remain modest with grocery costs 40% lower than Western Europe, public transport at €1.15 per trip, and restaurant meals averaging €10-15. This affordability means property investors can maintain their investments with lower carrying costs, while residents enjoy higher disposable income relative to property prices.

For investors, low living costs translate to competitive property management fees and maintenance expenses, improving net rental yields and making buy-to-let investments more profitable.

Which areas in Latvia offer the best investment opportunities?

Latvia's diverse regions offer distinct investment opportunities catering to different strategies and budgets.

Riga remains the economic powerhouse, attracting 40% of Latvia's population and offering the strongest rental demand. The city center commands premium prices but delivers consistent appreciation and rental income, while emerging neighborhoods like Agenskalns and Teika provide better value with strong growth potential.

Up-and-coming areas like Ventspils and Kuldiga offer early-mover advantages with industrial growth and tourism development driving future appreciation. However, these markets require patience and local knowledge to navigate successfully. More insights on area selection are available in our Latvia property pack.

What's expat life really like in Latvia?

Latvia's expat community has grown substantially, creating a welcoming environment for international property buyers and residents.

The expat scene concentrates in Riga and Jurmala, where English is widely spoken in business settings and international communities thrive. Digital nomads particularly appreciate Latvia's modern infrastructure, affordable living costs, and central European location for travel.

Language presents both opportunities and challenges - while Latvian is the official language, Russian remains common and English usage is growing, especially among younger generations. Learning basic Latvian significantly improves integration and demonstrates respect for local culture.

Bureaucracy can be slow and complex, particularly for residence permits and property purchases, though processes have streamlined considerably in recent years. The key is patience and proper documentation - having a local lawyer or consultant helps navigate administrative requirements.

Lifestyle offers an appealing blend of European sophistication and Baltic tradition. Latvia provides excellent healthcare, strong education systems, and vibrant cultural life with numerous festivals, concerts, and events. The country ranks highly for safety and cleanliness, with crime rates among Europe's lowest.

Integration varies by location - Riga's cosmopolitan atmosphere makes adjustment easier, while rural areas require more effort to build social connections but offer authentic cultural experiences.

How can you maximize rental income from Latvian property?

Successful rental strategies in Latvia require understanding distinct market segments and targeting the right locations for each approach.

For long-term rentals, focus on Riga's residential neighborhoods like Agenskalns, Teika, and Mezaparks where local professionals and expat families seek quality housing. Typical tenants include IT specialists, international company employees, and students, who prioritize modern amenities, energy efficiency, and good transport connections.

Long-term rental income ranges from €500 monthly for one-bedroom apartments to €900 for three-bedroom units in prime areas. Current yields of 2.8-5.5% reflect stable demand, though increased supply in Riga has created slight downward pressure, benefiting tenants with more choices.

Short-term rentals perform best in tourist hotspots - Riga's Old Town for city breaks, Jurmala for summer beach holidays, and Sigulda for nature tourism. These properties can command €60-150 nightly depending on season and quality, with occupancy rates varying from 40% in winter to 80% in summer.

Tourist demographics include European city breakers, Russian beach holidaymakers, and increasingly, digital nomads seeking monthly stays. However, new regulations in 2025 require registration and compliance with safety standards, adding administrative requirements but professionalizing the market.

Maximum yields come from properties offering unique features - historical charm in Old Town, beachfront access in Jurmala, or modern amenities in business districts.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Global Citizen Solutions - Buying Property in Latvia
2. Investropa - Latvia Real Estate Trends
3. Residency Bond - Buy Property in Latvia
4. Immigrant Invest - Latvia Real Estate Guide
5. YCharts - Latvia House Price Index
6. Latvia Sotheby's Realty - Q1 2025 Overview
7. Lawyers Latvia - Purchase Property in Latvia
8. Nopo - Best Real Estate Portals in Latvia
9. Expatistan - Cost of Living in Latvia
10. EstateGuru - Latvian Real Estate Market Analysis