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
Why is Latvia emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the thriving tourism sector, or the competitive pricing compared to other European markets? What makes Latvia a compelling choice for investors?
We often encounter these questions because we are actively engaged with local developers, real estate professionals, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a clear and compelling case for investing in Latvia's real estate market, drawing from our firsthand experience and in-depth market knowledge.
If you feel we've overlooked an important aspect or wish to learn more, please reach out to us (we respond very quickly). Your feedback helps us enhance our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
1) In Latvia, you will get great mortgage deals from stable banks
Latvia's banking sector is known for its remarkable stability.
With a non-performing loan ratio of just 2.4% in 2023, Latvian banks are doing a great job managing risks, meaning most loans are being repaid on time. This is a good sign for anyone considering buying property, as it reflects a healthy financial environment. The average mortgage interest rate in Latvia was around 5.6% in 2023, which is quite competitive compared to other EU countries, making it easier for people to afford homes.
The Latvian government is also lending a hand to first-time homebuyers. They've approved an extra €2.5 million for their support program, which is set to help thousands of families by mid-2024. This initiative is a big plus for new buyers looking to step into the property market.
Backing up this positive outlook, the International Monetary Fund (IMF) has praised Latvian banks for being well-capitalized and liquid. This means they have enough resources to handle any financial hiccups, which is reassuring for potential property buyers.
High capital adequacy ratios further bolster this confidence, ensuring that banks can absorb potential losses without breaking a sweat. This financial robustness is a key factor for anyone looking to invest in property, as it suggests a secure banking environment.
Overall, Latvia's banking sector offers a stable and supportive landscape for property buyers, with favorable mortgage terms and government initiatives aimed at easing the path for new homeowners.
Sources: Bank of Latvia, Statista, LSM.lv, IMF
2) With the tech industry booming, more young professionals are looking for homes in Latvia's cities
Latvia's tech industry is booming, especially in cities like Riga.
Thanks to favorable business conditions like tax breaks and accelerator funds, Latvia has become a hotspot for tech startups. This environment is a magnet for young professionals eager to dive into innovative projects. Imagine a place where starting a tech company is not just a dream but a supported reality.
It's not just local talent that's thriving; Latvia is also attracting significant foreign direct investment. Big names like IBM and Microsoft are outsourcing to Latvian firms, creating a ripple effect of job opportunities. This influx of investment is drawing skilled professionals from all over, making the tech scene even more vibrant.
The Latvian government is a key player in this tech surge. By offering tax incentives and fostering a welcoming environment for foreign investors, they've positioned Latvia as a tech-friendly destination. This isn't just about policies; it's about creating a community where tech innovation can flourish.
International tech conferences and events are also putting Latvia on the map. These gatherings are not just networking opportunities; they're a testament to Latvia's growing reputation as a hub for tech talent. It's a place where ideas are exchanged, and collaborations are born.
With the tech industry thriving, there's a noticeable increase in demand for urban housing. Young professionals are flocking to cities, eager to be part of this dynamic environment. The growing tech industry in Latvia is attracting young professionals, increasing demand for urban housing.
Sources: Accelerance, EasyLink, IMF
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.
3) With remote work on the rise, Latvia’s affordable and spacious homes are becoming more popular
Remote work trends are boosting interest in Latvia's housing market.
Latvia is becoming a hotspot for remote workers, thanks to its affordable and spacious living conditions and excellent digital infrastructure. Cities like Riga are seeing a boom in coworking spaces, with places like Coworking Riga, Teikums, and OraculeTang Space becoming popular among digital nomads. This trend is a clear sign of the growing demand for flexible work environments.
People are increasingly searching online for properties in Latvia, especially those who can work from anywhere. The buzz around Latvia as a digital nomad destination is growing, fueled by media and social media. The shift to remote work, which picked up speed during the COVID-19 pandemic, is making places like Latvia more appealing for those who can work remotely.
Remote workers are looking for larger homes to fit their work-from-home lifestyle, and Latvia offers just that. Compared to other European countries, Latvia provides more affordable housing options, making it a great choice for those needing more space. The government is also working to make housing even more affordable, which adds to the appeal.
In Latvia, you can find spacious homes without breaking the bank, a rarity in Europe. This affordability is a big draw for remote workers who want to enjoy a comfortable lifestyle while working from home. The combination of low costs and ample space is hard to beat.
With the rise of remote work, Latvia's housing market is becoming more attractive. The country's efforts to improve housing affordability are paying off, making it a top choice for those seeking a balance between work and life. The trend is clear: more people are looking to Latvia for their next home.
Sources: XYZ Lab, Economy Finance, Office Hub
4) Latvia’s beautiful landscapes and long coastline make it perfect for vacation homes
Latvia's stunning landscapes and extensive coastline make it a top choice for vacation homes.
In 2023, Latvia's tourism sector has been bouncing back, with more people, both locals and foreigners, flocking to explore its beauty. This uptick in visitors shows that Latvia's charm is catching on, drawing attention from those looking for a serene getaway.
Coastal properties, especially in places like Riga and Jūrmala, are in high demand. These areas are known for their gorgeous beaches and lively cultural scenes, making them perfect for vacation homes. Plus, Latvian coastal properties are more affordable compared to other European spots, which is a big draw for international buyers seeking a second home.
Latvia is also big on eco-tourism, offering a range of nature-based activities. With national parks and protected areas, there's plenty for outdoor enthusiasts to enjoy. This focus on sustainable tourism fits well with the global trend towards eco-friendly travel, making Latvia a great pick for those wanting a vacation home in a peaceful, green setting.
For those interested in a vacation home, Latvia's commitment to preserving its natural beauty is a major plus. The country's efforts to maintain its landscapes mean that homeowners can enjoy unspoiled views and a tranquil environment.
Whether it's the allure of the coast or the promise of eco-friendly adventures, Latvia offers a unique blend of natural beauty and cultural richness that makes it an ideal spot for a vacation home.
Sources: Tourism Recovery, Premium Property Rental Market, Short-Term Vacation Rental Market
5) Latvia’s varied landscape lets you explore unique real estate projects, such as rural retreats
Latvia's stunning landscapes offer unique opportunities for real estate developments, especially for those interested in rural retreats.
Imagine waking up to the serene beauty of Latvia's vast protected areas and NATURA 2000 sites, which are perfect for eco-tourism and nature-based experiences. Since 2023, more people have been drawn to activities like hiking and cycling in these peaceful settings, seeking a deeper connection with nature.
There's been a noticeable uptick in demand for countryside properties, with a 6-8% increase in 2024. This trend is fueled by the desire for a laid-back lifestyle and the freedom remote work offers, allowing people to live away from the city's hustle and bustle.
The Latvian government is on board with this shift, supporting rural development and sustainable tourism by offering incentives for greener buildings and energy-efficient homes. This makes eco-friendly rural retreats not just a lifestyle choice but a smart investment.
For investors, Latvia's large tracts of undeveloped land come at competitive prices, providing a golden opportunity to create unique real estate projects in these picturesque settings. The landscape is diverse, offering everything from lush forests to tranquil lakes, perfect for crafting a one-of-a-kind retreat.
Whether you're looking to escape city life or invest in a growing market, Latvia's countryside offers a blend of natural beauty and potential. Rural retreats are becoming increasingly popular, and with the right vision, they can be both a personal haven and a profitable venture.
Sources: Baltic Nature Tourism, Interreg Europe, Art Estate
Get to know the market before you buy a property in Latvia
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) With Riga Airport expanding, you’ll see more international buyers and renters interested in the area
The expansion of Riga International Airport has made it a hotspot for international buyers and renters.
In 2023, the airport saw a surge in activity, welcoming 6.63 million passengers, which is a 23% jump from the previous year. This boost in passenger numbers highlights the airport's enhanced connectivity, a major draw for those looking to invest or rent in the area. With expectations to serve over 7 million passengers by 2024, Riga is becoming a key player in the travel scene.
Financially, the airport is thriving. In the first nine months of 2023, Riga Airport's net turnover hit €54.5 million, a third more than the previous year, with profits reaching €5.3 million. This financial success is fueling the development of RIX Airport City, a multifunctional space with hotels, offices, and retail outlets, further boosting business opportunities and connectivity.
The airport's expansion is also drawing foreign investment into Riga's real estate market. With improved connectivity, Riga Airport is positioning itself as a future travel hub in Northern Europe, enhancing Latvia's regional competitiveness. This makes the area more appealing to international buyers and renters, as real estate agents often see a spike in interest when connectivity improves.
Riga's growing appeal is not just about numbers; it's about becoming a central hub in Northern Europe. The airport's strategic location and development plans are turning it into a magnet for international interest, making it a prime spot for real estate investment.
Sources: Schengen News, Aviation Pros, Future Travel Experience
This video gives a glimpse of the Riga International Airport expansion, showing how better connectivity is making the city even more attractive to people from around the world.
7) Latvia’s location between Western Europe and Russia makes it a key transit hub, increasing property demand
Latvia's prime spot between Western Europe and Russia makes it a key transit hub, driving up property demand.
Investors from Asia, the EU, and CIS countries are pouring money into Latvia's logistics and transportation sectors, building logistics centers and warehouses to capitalize on this strategic location. This influx of foreign direct investment is reshaping the landscape, with new facilities popping up to meet the growing demand.
One of the game-changers is the Rail Baltica project, a major infrastructure initiative that will link Helsinki to Berlin through the Baltics, boosting the region's competitiveness. This project is set to transform the way goods and people move across the region, making Latvia an even more attractive place for businesses.
The Latvian government is also playing a crucial role by supporting the transport and logistics industry, offering businesses access to the EU market with over 480 million customers. This support is a big draw for companies looking to expand their reach in Europe.
Riga International Airport, the largest air transportation hub in the Baltics, offers over 100 direct destinations, making it a magnet for international companies setting up regional offices. This connectivity is a major selling point for businesses and investors alike.
Latvian ports are also in the spotlight, thanks to their competitive tariffs, which are attracting more international operations. These ports are becoming key players in the global logistics network, further enhancing Latvia's appeal as a property investment destination.
Sources: Support for Investors in the Transport and Logistics Industry, Rail Baltica Main Line Latvia
This video lists Latvia's strategic location as one of the top 5 reasons to invest in its real estate market
8) If you invest significantly in property, the government will support you with residency permits
The Latvian government is rolling out the red carpet for foreign property investors.
With the Latvia Residence by Investment Program, you can snag a residence permit by buying real estate worth at least EUR 250,000. This has made places like Riga and Jurmala hot spots for foreign buyers, especially Russians, who are leading the charge in Latvia's residential market.
Foreign investments have pumped a lot of money into Latvia's economy. Since 2010, the program has brought in over EUR 1.3 billion, with more than EUR 1.1 billion from real estate alone. This cash flow is boosting the residential market, which is expected to hit US$1.04 billion by 2024.
The government is also making it easier to invest by streamlining property transactions and creating a welcoming investment climate. These moves have made Latvia's program one of the fastest and most competitive in Europe, drawing in a wide range of international investors.
Latvia's approach is not just about numbers; it's about creating a vibrant market that appeals to diverse investors. The government's initiatives are turning Latvia into a prime destination for property investment, offering both financial and lifestyle benefits.
Sources: Henley Global, Global Property Guide, Statista
This video highlights Latvia as one of the few EU countries still offering Golden Visas, demonstrating the government's commitment to supporting foreign investors through residency incentives tied to property investments.
9) With strong GDP growth, the economy is robust, which helps property values go up
Latvia's economy is on the rise, making it a promising spot for property investment.
In 2023, Latvia's GDP grew by 1.70%, and it's expected to hit 2.4% by 2025. This growth is fueled by people spending more, the government pouring money into projects, and a boost in exports. When the economy is strong, property values tend to climb, making it a good time to consider buying.
Foreign investors are taking notice too. In April 2023, Latvia saw a 14.3 million USD increase in foreign direct investment. This shows international confidence in Latvia's market, which can lead to more economic growth and higher property demand.
Housing is becoming more affordable compared to wages, thanks to improving price-to-wage ratios. This means more people can buy homes, pushing up demand and supporting property value growth. The government is also playing its part by rolling out initiatives to attract foreign investors and boost the economy.
Public investment and reforms are key strategies Latvia is using to keep the economy strong and property values rising. These efforts are expected to continue, making the real estate market even more attractive.
With a growing economy and supportive government policies, Latvia's property market is poised for appreciation. It's a good time to explore opportunities in this vibrant country.
Sources: Trading Economics, CEIC Data, IMF
10) Latvia’s expanding wine industry offers unique property opportunities in rural areas
Latvia's wine industry is on the rise, creating unique real estate opportunities in rural areas.
In 2023, the number of vineyards and wineries in Latvia increased, fueled by a boom in wine tourism and exports. This growth is drawing attention to rural areas where these vineyards are located, making them attractive for potential buyers.
The value of wine exports from Latvia hit $171 million in 2023, a 2.37% increase from the previous year. This trend is expected to continue, indicating that the wine industry will keep expanding and boosting demand for land suitable for vineyards.
Wine tourism is a big part of this story. In 2023, visitors spent an average of €400 per trip, with €89 going towards wine purchases. This spending highlights the potential for real estate development to support tourism infrastructure, like accommodations and tasting rooms.
For those considering buying property, the growing wine industry offers a chance to invest in niche real estate markets in Latvia's countryside. The demand for land is not just about vineyards; it's about creating experiences for tourists and wine enthusiasts.
As the industry grows, so does the opportunity to be part of a thriving community that values both tradition and innovation. Whether you're looking to start a vineyard or develop tourism facilities, Latvia's rural areas are ripe with potential.
Sources: Trendeconomy, Market.us, Art Estate
11) With the government investing in digital infrastructure, smart home developments are on the rise
The government's investment in digital infrastructure is a major boost for smart home developments.
In 2023, Latvia's Recovery and Resilience Plan (RRP) set aside €16.5 million to enhance last-mile connectivity and 5G infrastructure along the Via Baltica corridor. This move was all about ensuring comprehensive fibre backhaul availability, which is essential for smart home tech to work smoothly.
By 2023, Latvia had an impressive internet penetration rate of 92.4%, and broadband speeds saw a big jump. Mobile internet speeds shot up by 54.4% to 46.10 Mbps, while fixed internet speeds climbed by 16.0% to 72.40 Mbps. These improvements have laid a solid foundation for smart home devices, which need fast and reliable internet to do their thing.
Initiatives like Smart Rīga have really set the stage for smart home growth. The city has created smart city living labs and embraced innovation, working with different sectors to push digital transformation. This teamwork has likely sparked partnerships between tech companies and real estate developers, making smart tech in homes more common.
Latvia's focus on digital infrastructure is not just about faster internet; it's about creating an environment where smart homes can thrive. With the government's backing, smart home technologies are becoming more integrated into everyday life, making homes more efficient and connected.
As Latvia continues to invest in its digital future, the potential for smart home developments is only going to grow. The combination of improved internet speeds and a culture of innovation is a winning formula for smart home enthusiasts looking to invest in the country.
Sources: Digital Strategy, DataReportal, Smart Rīga
Buying real estate in Latviacan be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) With many international companies in Latvia, there’s a high demand for corporate housing
International companies are flocking to Latvia, and it's shaking up the housing market.
With more businesses setting up shop, there's a noticeable uptick in demand for corporate housing, especially in bustling cities like Riga. These companies are not just bringing business; they're bringing people who need places to stay. The rise in foreign direct investment is a clear sign of this trend, as Latvia becomes a hotspot for international offices.
Riga, with its vibrant new business districts, is seeing a boom in short-term corporate rentals. This is partly because coworking spaces are popping up everywhere, catering to the needs of international professionals. These spaces are strategically located to attract multinational corporations, making them a magnet for business travelers.
The influx of expatriates due to corporate relocations is another factor driving the need for corporate housing. As more international employees settle in Latvia, particularly in urban areas, there's a growing demand for convenient and flexible housing solutions. This trend is reshaping the real estate landscape, with more properties being tailored to meet these needs.
For those considering buying property in Latvia, this surge in demand presents an opportunity. Investing in real estate that caters to the corporate sector could be a smart move, given the steady flow of international professionals seeking accommodation. The market is ripe for those who can offer the right mix of location, amenities, and flexibility.
In essence, Latvia's appeal to international companies is not just boosting its economy but also transforming its housing market. The presence of these businesses is creating a dynamic environment where corporate housing is in high demand, offering potential buyers a chance to tap into a lucrative market.
Source: Trading Economics
13) In Latvia, you won’t pay property tax on your main home, thanks to a favorable tax regime
Latvia offers a favorable tax regime for real estate investors, especially with no property tax on primary residences.
According to the 2024 tax card from KPMG International, there's no mention of property tax on primary homes, hinting at a possible exemption. This makes Latvia an appealing choice for those looking to buy a home without the burden of extra taxes. The absence of this tax is a significant draw for potential homeowners.
Latvia's real estate market has been on the rise, with house prices jumping by 48% from 2010 to 2023. This surge is likely fueled by the tax benefits, which attract both local and international buyers. The growth in property values reflects the increasing demand driven by these favorable conditions.
Foreign investors are particularly interested in Latvia's real estate, and the absence of property tax on primary residences is a major factor. This tax advantage makes Latvia stand out in the European real estate market, drawing in investors from around the globe.
For those considering a move or investment, Latvia's tax policies offer a unique opportunity. The lack of property tax on primary homes not only reduces costs but also enhances the appeal of owning property in this Baltic nation. This policy is a key reason why many are choosing Latvia as their next investment destination.
With its strategic location and investor-friendly tax regime, Latvia is becoming a hotspot for real estate investment. The tax benefits are a significant incentive for those looking to capitalize on the growing market. This makes Latvia an attractive option for anyone looking to invest in property.
Sources: KPMG International, Golden Visa Latvia, Global Citizen Solutions
14) Eco-friendly living is on the rise in Latvia, boosting demand for sustainable housing projects
In Latvia, eco-friendly living is becoming increasingly popular, sparking a surge in demand for sustainable housing.
The Latvian government is actively promoting green housing by planning to build at least 300 eco-friendly apartments. This initiative is part of a broader strategy to enhance national disaster-risk management, showing a strong commitment to sustainable development.
Latvians are also showing a keen interest in energy efficiency. A recent survey found that 36.1% of homes have improved their energy efficiency over the past five years. This trend highlights a growing consumer preference for eco-friendly homes, naturally boosting demand for sustainable housing projects.
Government incentives are making a big difference too. Through the Recovery and Resilience Plan (RRP), Latvia is supporting investments in energy-efficient equipment and renewable-energy technologies. This financial support makes it easier for developers to focus on sustainable housing, increasing their availability.
For those considering buying property in Latvia, this shift towards eco-friendly living means more options for sustainable homes. The government's proactive stance and consumer interest are creating a fertile ground for these projects to thrive.
As a potential buyer, you can expect to see more developments that prioritize energy efficiency and sustainability, aligning with the growing trend of eco-conscious living in Latvia.
Sources: Economy Finance, LSM
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.
15) You can rely on the country’s stable political environment for secure real estate investments
Latvia's stable political environment makes it a prime spot for real estate investments.
With low corruption levels, Latvia ranked 34th out of 180 countries in the 2023 Corruption Perceptions Index, showing that corruption isn't a major issue here. This transparency is a big plus for anyone looking to invest in property without the usual bureaucratic headaches.
Being part of the European Union since 2004 has given Latvia a favorable economic environment. This membership opens doors to funding and investment opportunities, making it easier for investors to navigate the financial landscape. Plus, Latvia's stable credit ratings from international agencies mean there's low risk for investors, which is always reassuring.
Latvia shines in political stability indices, too. The 2023 Global Peace Index ranks it as one of the most peaceful countries worldwide. This peace and stability are crucial for long-term investments like real estate, where you want to know your investment is safe.
For those eyeing the property market, Latvia's political calmness and economic ties with the EU offer a secure backdrop for real estate investments. It's not just about buying property; it's about investing in a country where your assets are protected by a stable system.
In Latvia, the combination of low corruption, EU membership, and political stability creates a trustworthy environment for real estate investors. It's a place where you can feel confident about the future of your investment.
Sources: European Union Representation in Latvia, International Monetary Fund, Statista
16) With a low crime rate, this country is a safe and attractive option for property investment
Latvia's low crime rate makes it an attractive and safe place for property investment.
In 2022, Latvia recorded its lowest homicide rate since 2014, with a figure of 4.05 per 100,000 inhabitants, down from 5.18 in 2021. This trend of decreasing crime rates is a positive sign for potential investors. According to the 2023 Numbeo Crime Index, Latvia scored 37.7, ranking it as one of the safer countries in Europe. The Safety Index was 62.3, indicating a high level of safety, which is appealing to those looking to invest in property.
Major cities like Riga have seen a low incidence of property-related crimes, enhancing the perception of safety. The effectiveness of law enforcement is evident in the decrease in homicides and other crimes over recent years, with intentional homicides dropping from 98 in 2021 to 76 in 2022.
According to the 2023 Numbeo Crime Index, Latvia scored 37.7, ranking it as one of the safer countries in Europe. The Safety Index was 62.3, indicating a high level of safety, which is appealing to those looking to invest in property.
Major cities like Riga have seen a low incidence of property-related crimes, enhancing the perception of safety. The effectiveness of law enforcement is evident in the decrease in homicides and other crimes over recent years, with intentional homicides dropping from 98 in 2021 to 76 in 2022.
17) In Latvia, the low cost of living is appealing if you’re a retiree or expatriate
Latvia is a great choice for retirees and expatriates because of its low cost of living compared to other EU countries.
Imagine living in a place where your expenses are 37.2% lower than in the UK and 87% lower than in the US, including rent. This means you can enjoy a comfortable lifestyle without breaking the bank. Whether you're renting or buying, property prices in Latvia are quite affordable. Rent can range from €250 to €1,400, which is much lower than in Western Europe.
Utilities won't drain your wallet either. For an 85m² apartment, basic utilities cost around €279.52 per month, and you can get internet plans starting at €16.75. These lower costs make it easier to manage monthly expenses, leaving more room in your budget for leisure and travel.
Healthcare is another area where Latvia shines. It's generally more affordable compared to other EU countries, which is crucial for retirees who might need more frequent medical attention. Plus, the purchasing power of pensions is higher here, thanks to the lower cost of living, allowing retirees to maintain a good quality of life.
Latvia's growing expatriate community and favorable real estate market trends add to its appeal. The country offers a welcoming environment for those looking to retire or relocate, with plenty of opportunities to connect with like-minded individuals.
With all these benefits, it's no wonder Latvia is becoming a popular destination for retirees and expatriates seeking a more affordable and enjoyable lifestyle.
Sources: Global Citizen Solutions, Residency-Bond, Vagabond Buddha, Euronews
In this video, we take a closer look at why Riga is such a great option for anyone looking for an affordable and comfortable lifestyle in the EU.
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.