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
This blog post covers the current housing prices in Latvia and whether January 2026 is a good time to buy property there.
We constantly update this article to reflect the latest data on the Latvian real estate market, so you always get fresh insights.
Our goal is to help you make a smart, informed decision based on real numbers and local market signals.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Latvia.
So, is now a good time?
As of early 2026, buying property in Latvia is a "rather yes" decision, meaning conditions are reasonably favorable if you choose the right property in the right location.
The strongest signal is that Latvia's house prices are growing at a moderate pace (mid-single digits yearly) rather than overheating, which means you're not buying into a bubble.
Another strong signal is that mortgage rates in Latvia have eased from their 2024 peaks to around 4%, making monthly payments more manageable than they were a year ago.
Other supportive signals include ongoing infrastructure investments like Rail Baltica and Riga's Skanste district upgrades, plus a balanced market where buyers have more negotiating power than during the 2021-2022 boom.
The best investment strategy in Latvia right now is to focus on well-located apartments or townhouses in Riga's durable neighborhoods like Centrs, Teika, or Mežaparks, ideally for long-term holding or rental income.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase.
Is it smart to buy now in Latvia, or should I wait as of 2026?
Do real estate prices look too high in Latvia as of 2026?
As of early 2026, Latvia's property prices appear roughly in line with fundamentals, showing moderate growth rather than the stretched valuations you'd see in a bubble.
One clear signal from the Riga market is that standard-type apartments in housing estates are priced around 865 euros per square meter with only gentle year-to-date movement, which suggests prices are not running away from buyers.
Another useful indicator is that prime new-build properties command higher prices, but this reflects genuine quality and location differences rather than speculation, so the market looks segmented but not universally overpriced.
You can also read our latest update regarding the housing prices in Latvia.
Does a property price drop look likely in Latvia as of 2026?
As of early 2026, the likelihood of a meaningful property price decline in Latvia over the next 12 months is low, with no major crash triggers currently visible.
Looking at the plausible range, Latvia's property prices could move anywhere from a small dip of around 2% to gains of around 5-7% over the next year, with the upside scenario slightly more likely.
The single most important factor that could trigger a price drop in Latvia would be a sharp rise in mortgage rates or a sudden tightening of credit conditions, which would squeeze affordability and reduce buyer demand.
However, this scenario looks unlikely in the coming months because ECB policy is on an easing path and Latvia's central bank sees no imminent system-wide stress in borrower resilience or lending conditions.
Finally, please note that we cover the price trends for next year in our pack about the property market in Latvia.
Could property prices jump again in Latvia as of 2026?
As of early 2026, the likelihood of a renewed price surge in Latvia is medium, meaning a gentle re-acceleration is possible but a boom like 2021-2022 is unlikely.
If conditions align favorably, Latvia's property prices could rise by 6-8% over the next 12 months, especially in high-demand Riga neighborhoods with limited quality supply.
The single biggest demand-side trigger that could drive prices higher in Latvia is further mortgage rate easing, which would improve affordability and bring more buyers back into the market faster than new supply can respond.
Please also note that we regularly publish and update real estate price forecasts for Latvia here.
Are we in a buyer or a seller market in Latvia as of 2026?
As of early 2026, Latvia's residential market is closer to balanced with a slight buyer-lean, meaning buyers have more negotiating room than they did during the 2021-2022 boom years.
While Latvia doesn't publish a single "months of inventory" figure, market reports suggest supply and demand are roughly matched, which typically means neither side has overwhelming leverage in negotiations.
Price reductions are more common on older apartments and overpriced listings, which tells you that sellers of average-quality properties need to be realistic, while sellers of genuinely good properties in strong locations still hold some power.
We have made this infographic to give you a quick and clear snapshot of the property market in Latvia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Latvia as of 2026?
Are homes overpriced versus rents or versus incomes in Latvia as of 2026?
As of early 2026, homes in Latvia appear roughly fairly priced to mildly expensive when comparing purchase costs to rents and incomes, but they are not in extreme overvaluation territory.
Latvia's price-to-rent ratio suggests gross rental yields in the 4.5% to 6.5% range for typical Riga apartments, which is reasonable compared to mortgage rates around 4%, meaning the buy-versus-rent math is close to balanced.
On the income side, Latvia's price-to-income multiple has stretched at times historically, but recent moderate price growth and rising wages have kept affordability from becoming severely strained.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Latvia.
Are home prices above the long-term average in Latvia as of 2026?
As of early 2026, Latvia's home prices are above their long-term average in nominal terms, but this largely reflects a decade of inflation and economic growth rather than speculative excess.
The recent 12-month price change in Latvia has been in the mid-single digits, which is more moderate than the sharp gains seen in 2021-2022 and closer to the pre-pandemic pace of gradual appreciation.
When adjusting for inflation, Latvia's real price positioning is elevated compared to earlier years but has not clearly surpassed its prior cycle peak, suggesting the market is mature rather than overheated.
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What local changes could move prices in Latvia as of 2026?
Are big infrastructure projects coming to Latvia as of 2026?
As of early 2026, the biggest infrastructure project affecting Latvia's property market is Rail Baltica, which is expected to boost property values along the Riga corridor and near key transit nodes by improving connectivity.
Rail Baltica's Riga Central Station construction has resumed with EU funding secured, and the airport station is making visible progress, with the first operational phases expected later this decade.
For the latest updates on the local projects, you can read our property market analysis about Latvia here.
Are zoning or building rules changing in Latvia as of 2026?
The most important building rule change in Latvia is the launch of a unified construction process through the BIS system, which took effect on January 6, 2026, and streamlines the entire building workflow from proposal to Land Register registration.
As of early 2026, this rule change could have a modest positive effect on prices over time by making new supply more responsive, though short-term transition delays may slow some projects temporarily.
The areas most affected by this change in Latvia will be Riga's developing districts where new construction is most active, such as Skanste, parts of Teika, and the expanding suburbs where permitting speed matters most to developers.
Are foreign-buyer or mortgage rules changing in Latvia as of 2026?
As of early 2026, the main change affecting buyers in Latvia is the mortgage rate cycle rather than any single new foreign-buyer or lending rule, with rates having eased from 2024 peaks to around 4%.
Latvia is not currently discussing major foreign-buyer restrictions like taxes, bans, or quotas, as demand is primarily driven by local households and diaspora rather than speculative foreign capital.
On the mortgage side, lending conditions in Latvia follow ECB policy and Euribor movements, so the most likely "rule change" buyers will feel is continued rate adjustments rather than new LTV limits or stress tests.
You can also read our latest update about mortgage and interest rates in Latvia.
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.
Will it be easy to find tenants in Latvia as of 2026?
Is the renter pool growing faster than new supply in Latvia as of 2026?
As of early 2026, renter demand in Riga is roughly keeping pace with or slightly outpacing new rental supply in the best-connected areas, while the balance is more mixed in smaller Latvian towns.
The main driver of renter demand in Latvia is Riga's job concentration combined with households delaying purchases while mortgage rates remain elevated, which keeps the rental pool active.
On the supply side, new completions in Latvia exist but the "right kind" of rentals, meaning modern, energy-efficient, and well-located units, remain scarce enough to keep tenant competition healthy in desirable areas.
Are days-on-market for rentals falling in Latvia as of 2026?
As of early 2026, well-priced rentals in good condition in Riga's strong neighborhoods are finding tenants within 2 to 5 weeks, while weaker units in less desirable areas can sit for 2 to 3 months.
The difference between best and weaker areas in Latvia is significant: a modern apartment in Centrs or Teika rents much faster than an unrenovated unit in a distant housing estate with poor energy efficiency.
One common reason days-on-market falls in Riga is under-supply of quality rentals combined with seasonal demand spikes, especially in late summer when students and professionals relocate.
Are vacancies dropping in the best areas of Latvia as of 2026?
As of early 2026, vacancy rates in Riga's best rental areas like Centrs, Āgenskalns, Teika, Mežaparks, and Skanste appear tight to stable, with quality units not sitting empty for long.
These top Riga neighborhoods likely have vacancy rates below the overall city average because they combine walkability, transit access, and newer or renovated housing stock that tenants actively seek.
One practical sign that these best areas are tightening in Riga is that landlords with good properties are receiving multiple inquiries quickly, allowing them to be selective about tenants rather than offering rent discounts.
By the way, we've written a blog article detailing what are the current rent levels in Latvia.
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Am I buying into a tightening market in Latvia as of 2026?
Is for-sale inventory shrinking in Latvia as of 2026?
As of early 2026, for-sale inventory in Latvia is not clearly shrinking nationwide, but quality listings in desirable locations remain consistently scarce while average-quality stock is more plentiful.
We don't have a single authoritative months-of-supply figure for Latvia, but market signals suggest the balance is roughly neutral, meaning neither a severe shortage nor an oversupply that would dramatically shift buyer or seller power.
One reason good inventory stays tight in Riga is that owners of well-located, renovated properties often prefer to hold or rent rather than sell at current prices, especially if they locked in low mortgage rates before 2024.
Are homes selling faster in Latvia as of 2026?
As of early 2026, selling speed in Latvia varies sharply by property quality: high-quality homes in strong locations sell faster than before, while average stock takes longer as buyers are more selective.
Compared to a year ago, median days-on-market in Latvia has likely stabilized rather than dramatically shortened, reflecting a market that is neither in a frenzy nor in distress.
Are new listings slowing down in Latvia as of 2026?
As of early 2026, we estimate that new for-sale listings in Latvia are roughly stable compared to last year, though precise figures are hard to confirm without a centralized public listing tracker.
Latvia typically sees a seasonal pattern where listings pick up in spring and slow in winter, and the current January level appears to follow this normal rhythm without being unusually low.
One plausible reason listing flow might stay subdued in Latvia is that some owners prefer to wait for better conditions or are holding properties for rental income rather than selling into a balanced market.
Is new construction failing to keep up in Latvia as of 2026?
As of early 2026, new construction in Latvia's most desired segments, particularly modern apartments in central Riga, often lags behind demand, though the gap is not extreme.
The recent trend in Latvian construction activity shows steady but not booming output, with developers cautious after the rate spike in 2024 made financing more expensive.
The single biggest bottleneck limiting new construction in Latvia has been permitting complexity, which the new unified BIS process launched in January 2026 aims to address over time.
We made this infographic to show you how property prices in Latvia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Latvia as of 2026?
Is resale liquidity strong enough in Latvia as of 2026?
As of early 2026, resale liquidity in Latvia is strong in Riga and a few popular submarkets, but thins out quickly in smaller towns and less accessible locations.
In Riga, well-priced resale homes typically sell within 4 to 8 weeks, which is reasonable liquidity compared to markets where properties can sit for many months.
The property characteristic that most improves resale liquidity in Latvia is location in Riga's core or well-connected neighborhoods, combined with good condition and energy efficiency, as these attract the broadest buyer pool.
Is selling time getting longer in Latvia as of 2026?
As of early 2026, selling time in Latvia is roughly stable compared to last year, slightly longer than the fast-moving boom period but not alarmingly extended.
The current median days-on-market for Latvian residential properties ranges from around 4 weeks for desirable listings to 3 months or more for overpriced or compromised properties.
One clear reason selling time can lengthen in Latvia is when sellers price their properties above what buyers can afford given current mortgage rates, forcing eventual price reductions.
Is it realistic to exit with profit in Latvia as of 2026?
As of early 2026, the likelihood of selling a Latvian property with profit is medium to high if you hold for at least 5 years and buy the right asset, but quick flips are unlikely to work.
The minimum holding period that typically makes exiting with profit realistic in Latvia is around 5 to 7 years, giving enough time for modest appreciation to cover transaction costs.
Total round-trip costs in Latvia, including buying and selling expenses like notary fees, registration, agent commissions, and taxes, typically run around 5% to 8% of the property value, or roughly 5,000 to 10,000 euros on a 125,000 euro apartment.
The single factor that most increases your profit odds in Latvia is buying below market value or in an improving neighborhood before infrastructure upgrades like Rail Baltica stations are fully priced in.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Latvia, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Central Statistical Bureau of Latvia (CSP) | Latvia's official statistics agency publishing the country's house price index. | We used it as the primary source for nationwide price trends and growth rates. We cross-checked it against Eurostat to validate the direction of the market. |
| Eurostat House Price Index | The EU's statistical office providing harmonized housing data across member states. | We used it to benchmark Latvia against EU peers. We also used its methodology notes to keep definitions consistent. |
| Latvijas Banka Financial Stability Report 2025 | Latvia's central bank providing credible analysis of credit and housing risks. | We used it to understand mortgage market risks and borrower stress factors. We triangulated its narrative with observed rate trends. |
| Latvijas Banka Macroeconomic Projections June 2025 | An official central bank forecast with transparent assumptions. | We used it to ground 2026 macro forces like income growth and inflation. We mapped those forces to housing demand and affordability. |
| ECB Data Portal (Mortgage Rates) | The euro area's central bank providing standardized interest rate statistics. | We used it to anchor the discussion of mortgage rate direction and timing. We validated the data recency to ensure we're not using stale rates. |
| Arco Real Estate Market Overview | A well-established Baltic real estate firm with consistent methodology. | We used it for Riga apartment pricing levels and near-term momentum. We cross-checked its trends with CSP's nationwide index. |
| Ober-Haus Baltic Housing Market Report 2025 | A major Baltic real estate group compiling official stats with consistent methods. | We used it for affordability framing and supply-demand signals. We triangulated its conclusions with CSP and central bank data. |
| Global Property Guide Latvia | An international research publisher transparently citing ECB as its source. | We used it to extract clean quarterly rate estimates. We treated it as a convenience layer while anchoring authority in ECB data. |
| Latvia Building Information System (BIS) | The official government construction platform documenting regulatory changes. | We used it to identify the January 2026 rule change affecting permitting. We incorporated it as a local policy lever specific to Latvia. |
| Ministry of Transport Latvia (Rail Baltica) | The official ministry page describing scope for a nationally significant project. | We used it to ground the infrastructure narrative in official details. We discussed which submarkets are most likely to benefit. |
| ES fondi (EU Funds Portal Latvia) | An official EU funding portal documenting financed projects and timelines. | We used it to confirm that funded Rail Baltica works resumed. We treated it as evidence that money is committed, not just planned. |
| Riga City (Skanste Project) | The municipality's own announcement for a major district upgrade. | We used it as evidence of neighborhood investment affecting desirability. We linked it to where new premium supply clusters in Riga. |
| LSM (Latvian Public Media) | Latvia's public broadcaster citing CSP directly for housing data. | We used it as an accessible bridge to verify CSP figures being cited publicly. We still treated CSP as the primary underlying source. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Latvia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.