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
Latvia's housing market is gaining attention from foreign buyers in 2026, with prices still 30 to 40% lower than in neighboring Estonia and Lithuania, making it one of the most affordable entry points in the Baltics.
In this guide, we cover everything you need to know about current housing prices in Latvia, neighborhood trends, days on market, and what locals and insiders are saying about the market right now.
We constantly update this blog post with fresh data so you always get the most current picture of Latvia's real estate landscape.
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.
How's the real estate market going in Latvia in 2026?
What's the average days-on-market in Latvia in 2026?
As of early 2026, a correctly priced apartment in Riga typically stays on the market for about 45 to 75 days before finding a buyer, while hot renovated units in central areas can sell in as little as 30 to 55 days.
The realistic range that covers most typical listings in Latvia spans from about 30 days for move-in-ready central Riga apartments to 120 days for new-build projects at premium prices or houses in the Pieriga suburbs around the capital.
Compared to one or two years ago, properties in Latvia are selling somewhat faster in early 2026, mainly because the official House Price Index showed prices rising again through 2025, which signals healthier buyer activity and tighter supply in popular areas.
Are properties selling above or below asking in Latvia in 2026?
As of early 2026, most residential properties in Latvia sell at roughly 94% to 100% of their asking price, meaning buyers typically negotiate a small discount of around 3% to 6% off the listed price.
In terms of percentages, the majority of deals close at or slightly below asking, with only about 10% to 15% of properties selling at or above asking price in 2026, and this estimate comes from combining official price trends with broker feedback rather than a single published statistic.
Bidding wars and above-asking sales in Latvia are most common for prime renovated apartments in central Riga, especially in sought-after areas like Vecrīga (Old Town) and the Quiet Center, as well as energy-efficient new builds in Āgenskalns and Skanste where supply is limited and buyer competition is stronger.
By the way, you will find much more detailed data in our property pack covering the real estate market in Latvia.
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.
What kinds of residential properties can I realistically buy in Latvia?
What property types dominate in Latvia right now?
In Latvia's residential market in 2026, apartments make up roughly 70% of available listings, while detached and semi-detached houses account for about 25%, with townhouses and premium villas representing the remaining 5%.
The single property type that dominates Latvia's market is apartments, particularly Soviet-era panel buildings in Riga's housing estates and renovated units in central districts, which together form the backbone of what buyers can find.
Apartments became so prevalent in Latvia because of the country's Soviet-era building legacy, when mass housing construction focused on prefabricated panel blocks to accommodate rapid urban growth, and this housing stock still represents a majority of residential units in Riga and other cities today.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Latvia right now?
New-build properties represent roughly 15% to 20% of residential listings currently available in Latvia, with the pipeline concentrated in Riga where developers continue to launch projects, though the best-located units tend to get absorbed quickly.
As of early 2026, the highest concentration of new-build developments in Latvia is found in Riga's Skanste district (which has seen major office and residential construction), Āgenskalns on the left bank of the Daugava River, Torņakalns near the new University of Latvia Academic Centre, and parts of Teika, while outside Riga, new construction is thinner and mostly consists of individual one-dwelling permits rather than large developments.
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Which neighborhoods are improving fastest in Latvia in 2026?
Which areas in Latvia are gentrifying in 2026?
As of early 2026, the neighborhoods in Latvia showing the clearest signs of gentrification are Āgenskalns (known for its wooden architecture and creative community), Torņakalns (emerging as the "next Āgenskalns" due to university and infrastructure development), Grīziņkalns (attracting spillover from central areas), and parts of Sarkandaugava on Riga's right bank.
Visible changes indicating gentrification in these areas include the reopening and renovation of the Āgenskalns Market, the expansion of hip cafes like Ezītis Miglā and the creative Hāgenskalna Komūna, the transformation of the Kalnciema Quarter into a cultural hub, new residential projects in Torņakalns reaching 2,600 to 3,300 euros per square meter, and government-supported wooden building preservation programs that are attracting younger, more affluent residents.
Price appreciation in these gentrifying neighborhoods over the past two to three years has ranged from about 15% to 20% in Āgenskalns, which has been the strongest performer, while emerging areas like Torņakalns and Grīziņkalns have seen more modest but accelerating gains of 10% to 15% as investor and buyer interest shifts their way.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Latvia.
Where are infrastructure projects boosting demand in Latvia in 2026?
As of early 2026, the top areas in Latvia where major infrastructure projects are boosting housing demand are the Riga Central Station zone (Rail Baltica works), the airport corridor connecting Riga International Airport to the city center, and the Skanste district where public realm upgrades are transforming livability.
The specific infrastructure projects driving demand include Rail Baltica's Riga Central Station construction (the largest transport project in Baltic history), the 29 million euro rail link being built between Riga Airport and the city center, Skanste's 15-hectare urban park and new street network, and the University of Latvia Academic Centre development in Torņakalns which is reshaping the left bank.
The Rail Baltica Riga Central Station works have scheduled milestones through 2026, with construction resuming in April 2025 after earlier delays, while the airport rail link received government funding approval in late 2025 and Skanste's public realm phases are being completed in stages through 2026 and beyond.
The typical price impact on nearby properties in Latvia is a 5% to 15% premium once infrastructure projects are announced and confirmed, with additional appreciation of 10% to 20% as projects near completion, though the effect varies based on proximity and the overall market cycle.
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.
What do locals and insiders say the market feels like in Latvia?
Do people think homes are overpriced in Latvia in 2026?
As of early 2026, the general sentiment among locals and market insiders in Latvia is mixed: prices are clearly rising again (up about 8% year-on-year in late 2025), but most people feel budgets remain constrained by mortgage rates and that Latvia still offers relative value compared to neighboring Baltic capitals.
When locals argue homes are overpriced, they typically point to the fact that prices have more than doubled since 2015, that mortgage payments consume a large share of average salaries, and that new-build prices in central Riga (2,900 to 4,300 euros per square meter) feel out of reach for many Latvian families earning the median wage.
On the other side, those who believe prices are fair in Latvia argue that Riga remains 30% to 40% cheaper than Tallinn or Vilnius, that rental yields of 7% to 8% justify current valuations for investors, and that limited new supply in desirable areas means prices have room to grow further.
Latvia's price-to-income ratio is roughly 8 to 10 years of average household income for a typical Riga apartment, which is higher than the European average but still more affordable than many Western European capitals, and comparable to other Baltic and Central European markets in 2026.
What are common buyer mistakes people regret in Latvia right now?
The most frequently cited buyer mistake that people regret in Latvia is skipping thorough Land Register and cadastral due diligence before signing, which means buyers later discover encumbrances, unclear boundaries, or easements that affect the property's value or their ability to renovate, and this is especially common among foreigners unfamiliar with Latvia's Zemesgrāmata (Land Book) system.
The second most common mistake buyers regret in Latvia is underestimating the quality differences between Soviet-era panel buildings and renovated or new-build stock, particularly regarding energy efficiency, as older apartments with poor insulation face significantly higher heating costs and may require expensive upgrades to meet modern standards, making what seemed like a bargain much more costly over time.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Latvia.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Latvia.
Get the full checklist for your due diligence in Latvia
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How easy is it for foreigners to buy in Latvia in 2026?
Do foreigners face extra challenges in Latvia right now?
Foreigners buying property in Latvia face a moderate level of extra difficulty compared to local buyers: EU citizens have nearly unrestricted rights similar to Latvians, while non-EU buyers can purchase apartments and houses freely but face restrictions on agricultural and forest land.
The specific legal restrictions for foreign buyers in Latvia include the prohibition on non-EU/EEA/OECD citizens purchasing agricultural or forest land, the requirement for special permits in border zones and certain protected areas, and the rule that if a house sits on land classified as agricultural (even if the dwelling is residential), the buyer may need municipal approval or face ownership limitations.
Practical challenges foreigners commonly encounter in Latvia include dealing with documentation that is primarily in Latvian (requiring sworn translators for contracts), navigating stricter bank anti-money-laundering checks that require extensive proof of income and source of funds, and the reality that many sellers and even some real estate agents operate mainly in Latvian or Russian rather than English, which can slow negotiations and create misunderstandings.
We will tell you more in our blog article about foreigner property ownership in Latvia.
Do banks lend to foreigners in Latvia in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Latvia from major banks like Swedbank, Citadele, and SEB, though foreigners typically face stricter documentation requirements and may need larger down payments than local residents.
Foreign buyers in Latvia can generally expect loan-to-value ratios of 60% to 70% (meaning a 30% to 40% down payment), compared to up to 90% for Latvian residents, with interest rates for foreigners around 4.5% to 5.5% annually as of early 2026, which is slightly higher than the 4% to 4.5% rates available to locals.
Banks in Latvia typically require foreign applicants to provide proof of stable income (often from a recognized EU or OECD country), comprehensive documentation of the source of funds for the down payment, credit history from their home country, and sometimes a Latvian bank account with a track record, with the entire approval process often taking longer than for local buyers due to enhanced due diligence requirements.
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.
How risky is buying in Latvia compared to other nearby markets?
Is Latvia more volatile than nearby places in 2026?
As of early 2026, Latvia's property market shows moderate volatility that is roughly in line with its Baltic neighbors Estonia and Lithuania, with all three markets sharing similar sensitivity to interest rate changes, credit availability, and regional economic conditions.
Over the past decade, Latvia experienced the sharpest historical price swings among the Baltic states during the 2008 to 2010 financial crisis, when Riga apartment prices dropped by roughly 70% from peak to trough, compared to around 50% to 60% declines in Tallinn and Vilnius, though all three markets have since recovered and Latvia's prices have more than doubled from their 2010 lows.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Latvia.
Is Latvia resilient during downturns historically?
Latvia's property market has shown mixed resilience during past downturns: the 2008 to 2010 crisis hit the country extremely hard (one of the worst declines in Europe), but recovery since then has been steady, and the market proved more stable during the 2020 pandemic and 2022 inflation shock than during the earlier crisis.
During the 2008 financial crisis, property prices in Latvia dropped by approximately 70% from their 2007 peak to the 2010 trough, with Riga apartment prices falling from around 1,200 euros per square meter to roughly 400 euros, and full recovery to pre-crisis price levels took about 12 to 14 years, finally being achieved around 2021 to 2022.
The property types and neighborhoods that have historically held value best during downturns in Latvia are prime central Riga locations like Vecrīga (Old Town), the Quiet Center, and Mežaparks, along with well-maintained newer buildings with good energy efficiency, while Soviet-era panel blocks in peripheral areas like Bolderāja and distant suburbs have been most vulnerable to price drops and slowest to recover.
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How strong is rental demand behind the scenes in Latvia in 2026?
Is long-term rental demand growing in Latvia in 2026?
As of early 2026, long-term rental demand in Latvia is steady to slightly growing, particularly in Riga, where a combination of job concentration, university enrollment, and households priced out of buying due to mortgage rate sensitivity continues to support the rental market.
The tenant demographics driving long-term rental demand in Latvia include young professionals working in Riga's growing tech and service sectors, university students (Riga hosts major institutions like the University of Latvia and Riga Technical University), expats and digital nomads attracted by Latvia's relatively low cost of living, and families who prefer renting while saving for a deposit.
The neighborhoods with the strongest long-term rental demand in Latvia right now are central Riga areas like Centrs and the Quiet Center (popular with professionals), Āgenskalns and Teika (favored by young families and students), and areas near universities where rental yields can exceed 8% to 10%, with Vecrīga (Old Town) commanding premium rents from expats and short-term corporate tenants.
You might want to check our latest analysis about rental yields in Latvia.
Is short-term rental demand growing in Latvia in 2026?
Short-term rental regulations in Latvia remain relatively investor-friendly compared to many Western European cities, with no strict licensing caps or night limits as of early 2026, though hosts must register their activity for tax purposes and comply with standard safety and building codes.
As of early 2026, short-term rental demand in Latvia is growing, driven by a strong rebound in foreign tourism, with Eurostat data showing Latvia experienced a notable increase in foreign overnight stays through 2025, and Riga in particular benefiting from its status as a popular weekend destination and its improved air connections.
The current estimated average occupancy rate for short-term rentals in Riga is around 70% to 75% annually, with strong seasonality that sees August and July as peak months and winter as the slower season, though city center properties near Old Town often outperform this average.
Guest demographics driving short-term rental demand in Latvia include European tourists (especially from Germany, the UK, and Scandinavia) visiting for weekend city breaks, business travelers attending conferences and corporate events, and a growing segment of digital nomads testing Riga as a base, with about 77% of Riga Airbnb guests coming from outside Latvia.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Latvia.
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.
What are the realistic short-term and long-term projections for Latvia in 2026?
What's the 12-month outlook for demand in Latvia in 2026?
As of early 2026, the 12-month demand outlook for residential property in Latvia is stable to slightly positive, with most analysts expecting continued buyer interest in Riga's best areas, supported by improving mortgage affordability as EURIBOR rates have declined from their 2023 peaks.
The key economic and political factors most likely to influence demand in Latvia over the next 12 months include the trajectory of European Central Bank interest rates (which directly affect Latvian mortgage costs), the government's continued housing support programs like the ALTUM guarantees and the "Balsts" program allocating 5.5 million euros to large families in 2026, and the broader geopolitical situation in the region which can affect investor confidence.
Based on current trends, property prices in Latvia are forecast to increase by roughly 3% to 7% over the next 12 months, with existing apartments in Riga likely to outperform new builds, and the strongest growth expected in neighborhoods benefiting from infrastructure investment and gentrification momentum.
By the way, we also have an update regarding price forecasts in Latvia.
What's the 3 to 5 year outlook for housing in Latvia in 2026?
As of early 2026, the 3 to 5 year outlook for housing in Latvia points to modest but steady price growth in Riga's best districts, with more uneven performance elsewhere, as the market continues to mature and converge gradually toward Baltic neighbors' price levels.
Major development projects expected to shape Latvia over the next 3 to 5 years include the completion of Rail Baltica's Riga Central Station and associated transport links, the continued transformation of Skanste into a modern mixed-use district, the buildout of Torņakalns around the University of Latvia Academic Centre, and potential waterfront redevelopment projects that could add significant new housing and commercial space.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Latvia is a renewed credit shock or sustained high interest rate environment, which would constrain buyer purchasing power and could stall price growth, particularly affecting affordability-stretched buyers and peripheral locations with thinner demand.
Are demographics or other trends pushing prices up in Latvia in 2026?
As of early 2026, demographic trends in Latvia present a mixed picture for housing prices: the country's overall population is declining (a headwind), but Riga's role as the economic hub means the capital continues to concentrate jobs, investment, and demand, which supports prices in specific neighborhoods even as rural areas struggle.
The specific demographic shifts most affecting prices in Latvia include internal migration from smaller towns to Riga (adding demand in the capital), an aging population that is freeing up some housing stock but also reducing the buyer pool in certain segments, and modest but growing immigration of young professionals and students from other EU countries and beyond who are adding to rental and purchase demand in central areas.
Non-demographic trends pushing prices in Latvia include the appeal of Riga to digital nomads and remote workers seeking affordable European bases, increased foreign investor interest attracted by high rental yields (7% to 8%) compared to Western Europe, and the ongoing gentrification of left-bank neighborhoods that is drawing lifestyle-focused buyers willing to pay premiums for character and community.
These demographic and trend-driven price pressures in Latvia are expected to continue for at least the next 5 to 10 years in Riga's most desirable districts, though the effect will be concentrated in areas with good infrastructure, job access, and lifestyle appeal, while peripheral locations and smaller cities may see flat or declining values as population outflow continues.
What scenario would cause a downturn in Latvia in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Latvia would be a renewed credit tightening where banks sharply restrict lending due to external financial stress or regulatory changes, combined with a broader economic shock that hits household incomes and confidence.
Early warning signs that would indicate a downturn is beginning in Latvia include a sustained increase in days-on-market beyond 90 to 120 days for typical Riga listings, rising inventory of unsold new-build units, banks reporting sharp declines in mortgage applications, and a widening gap between asking prices and actual sale prices as sellers become more desperate.
Based on historical patterns, a potential downturn in Latvia could realistically see prices decline by 15% to 30% in a moderate stress scenario, with the most vulnerable segments being highly leveraged new-build projects, properties in peripheral locations with thin buyer pools, and older Soviet-era stock requiring significant renovation or energy efficiency upgrades, while prime central Riga locations would likely hold value better and recover faster.
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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 (CSB) | It's Latvia's official statistics agency publishing the country's authoritative House Price Index. | We used it as the backbone for understanding what prices are doing nationally and by property type. We treated it as the anchor that all other market commentary must align with. |
| Latvian Public Media (LSM) | It's Latvia's public broadcaster and clearly attributes its housing data to official CSB sources. | We used it to quickly verify the latest published year-on-year price changes in plain English. We cross-checked it against CSB release dates and figures for accuracy. |
| Bank for International Settlements (BIS) | BIS is the global reference source for cross-country property price indicators used by central banks worldwide. | We used it to compare Latvia's price cycle and volatility to nearby markets like Estonia and Lithuania. We also used it to sanity-check whether Latvia's trend looks unusually hot or cold versus peers. |
| Ober-Haus Baltic Housing Report | Ober-Haus is a long-established Baltic real estate firm known for systematic and consistent market reporting. | We used it to triangulate transaction activity and sentiment across Riga versus Tallinn and Vilnius. We also used it to support momentum and volatility comparisons between Baltic capitals. |
| European e-Justice Portal | It's an official EU portal describing the structure of Latvia's cadastral and land register systems. | We used it to explain which official registries matter for due diligence. We used it to emphasize how ownership and encumbrances are formally recorded in Latvia. |
| Swedbank Latvia | Swedbank is one of the region's major retail banks and publishes borrower-facing mortgage terms and processes. | We used it as evidence that mainstream mortgage products exist and are actively marketed in Latvia. We used it to frame what a normal bank process looks like for buyers. |
| ALTUM Development Finance Institution | ALTUM is Latvia's state development finance institution running government-backed housing support programs. | We used it to explain why local buyer demand can remain supported even when rates are high. We also used it in our discussion of market resilience factors. |
| Eurostat Tourism Statistics | Eurostat is the EU's statistical authority and a primary source for tourism demand data across member states. | We used it as an objective proxy for short-term rental demand pressure in Latvia. We treated it as the official direction-of-travel indicator for tourism-driven rental demand. |
| Global Property Guide | Global Property Guide is a respected independent source for international rental yield and price comparisons. | We used it to validate rental yield estimates across Riga neighborhoods. We also used their historical price data to contextualize Latvia's long-term appreciation trends. |
| Riga City Municipality | It's the official city portal describing completed and ongoing public investment in specific districts. | We used it to identify infrastructure and placemaking areas that can pull demand forward locally. We translated city plans into practical neighborhood implications for homebuyers. |