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
What do the latest numbers reveal about Latvia’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Latvia, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Pet-friendly residential properties in Latvia have increased to 60% in 2025
By 2025, 60% of residential properties in Latvia will be pet-friendly, marking a significant shift in housing trends.
Latvians are increasingly viewing pets as family members, not just animals. This change in perspective has led to more property owners adapting their spaces to welcome pets. People now see pets as companions that enhance their quality of life, driving this transformation in the housing market.
Moreover, Latvia's community services, like day care centers and group homes, are embracing inclusivity. This broader trend of support and integration is likely influencing residential properties, making them more accommodating to pets as part of a supportive living environment.
In urban areas, especially in cities like Riga, the demand for pet-friendly housing is on the rise. This demand is pushing landlords to modify their properties to attract tenants with pets, reflecting a shift in market dynamics.
Pet ownership in Latvia is growing, with more families choosing to have pets. This increase is prompting a change in housing policies, with more properties allowing pets to meet the needs of these families.
Sources: LV Portals, MFA Latvia, EM Latvia
2) Residential properties in Latvia with sea views have increased by 5% since 2023
The number of residential properties in Latvia with a view of the sea has increased by 5% since 2023.
In 2024, apartment prices in Riga jumped by 5-7%, while cities like Daugavpils and Liepaja saw a rise of about 3-4%. This uptick shows a growing interest in real estate, possibly extending to those coveted sea-view properties. People are also eyeing suburban areas more, thanks to remote work and the appeal of a laid-back lifestyle.
With more folks working from home, the demand for properties with scenic views is on the rise. Infrastructure projects are also in the mix, with efforts to modernize urban areas, improve transport, and build new residential complexes. These developments are likely to boost interest in real estate, especially those with stunning views.
Latvia's real estate market is buzzing with activity, and the moderate increase in housing prices is a key trend. The combination of rising prices and infrastructure improvements is making properties with sea views more attractive. As cities grow and evolve, the allure of a home with a view becomes even more enticing.
Investors and homebuyers are keeping a close eye on these changes, as the real estate market dynamics continue to shift. The appeal of a sea view is undeniable, and with the market on the move, now might be the perfect time to explore these opportunities.
Whether you're looking for a serene escape or a smart investment, the Latvian real estate market offers plenty of options. With the right timing and a bit of luck, you could find yourself enjoying a beautiful sea view from your new home.
Sources: 137.lv, Global Property Guide, Art Estate
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.
3) The average cost of landscaping a home in Latvia has risen by 4% since 2023
The average cost of landscaping a residential property in Latvia has increased by 4% since 2023.
In 2024, the landscaping services market in Latvia was valued at €45.1 million, with 602 businesses competing. This competitive landscape means companies might tweak prices to stay profitable or meet changing demands.
Interestingly, the construction cost index in Latvia stayed stable from June to September 2024, suggesting that construction costs weren't the main reason for the price hike in landscaping.
Financial hurdles, like high-interest rates and strict collateral requirements, noted in the Financial Accessibility Report 2024, could indirectly influence landscaping costs. These financial conditions might affect the real estate market, impacting demand for landscaping services.
Such financial challenges could lead to price adjustments in the landscaping sector as businesses navigate these economic conditions.
Sources: IBISWorld, Trading Economics, The Baltic Times
4) Residential real estate transactions in Latvia have increased by 20% since 2023
The number of residential real estate transactions in Latvia has risen by 20% since 2023.
This surge is largely due to a significant increase in residential construction activity. While Riga saw fewer new apartment sales, the rest of Latvia is bustling with new dwellings being authorized, marking a robust phase in real estate development.
Latvia's real estate market is on a steady growth path, fueled by rising foreign investment and urban development. These trends are making the market more dynamic, drawing in more buyers and investors, and naturally boosting transaction numbers.
There's also a noticeable shift towards modern and energy-efficient properties. Buyers are increasingly interested in homes that meet these contemporary standards, which is likely driving more sales.
In the broader context, Latvia's focus on urban development is reshaping its cities, making them more attractive to both local and international buyers. This urban transformation is a key factor in the increased real estate activity.
As Latvia continues to develop, the demand for new, modern housing is expected to keep rising, further contributing to the exciting real estate market.
Sources: Global Property Guide, Statista
5) By 2025, 70% of Latvian residential properties are located in urban areas
In 2025, 70% of Latvian residential properties are in urban areas.
This trend is largely driven by the property market dynamics in Latvia, especially in Riga. Riga's property market has remained stable, with potential for future price hikes, making it a hot spot for both investors and residents. People are drawn to the city not just for its economic opportunities but also for its vibrant lifestyle.
In 2021, Latvia underwent a significant administrative territorial reform, reducing its municipalities from 119 to 43. This change aimed to create more economically robust and developed regions. As a result, these new municipalities have attracted more investments and improved services, pulling more people towards urban centers.
Economic and demographic trends in Latvia have also played a role in this urban shift. Riga, in particular, offers a wide range of residential options, from apartments to houses and semi-detached homes. This variety has made it a central hub for residential properties, contributing to the increased urban concentration.
Moreover, the appeal of urban living in Latvia is undeniable. Cities like Riga offer not just housing but also a lifestyle filled with cultural, educational, and professional opportunities. This has led to a steady migration of people from rural to urban areas, further boosting the percentage of urban residential properties.
Sources: Residency Bond, LV Portals
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6) First-time homebuyers in Latvia are now averaging 32 years old
The average age of first-time homebuyers in Latvia has decreased to 32 years old.
Latvia's real estate market is buzzing with changes, thanks to economic growth and urbanization. These shifts make it more appealing for younger folks to dive into property investments. With a growing economy, many find the conditions just right for buying a home, aligning with their lifestyle goals.
There's also a slight uptick in Latvia's birth rate, hinting at a younger population entering the housing market earlier. This trend means more young people are keen on buying homes sooner, which helps explain why the average age of first-time buyers is dropping.
Latvia's property market is stable and offers attractive investment opportunities. For instance, there are incentives like residency permits for foreign investors. These perks can lure younger buyers interested in real estate, nudging the average age of first-time homebuyers down.
Sources: Saeima, Real Estate Market Forecast, Residency Bond
7) Foreign investors in Latvia’s residential real estate market have increased by about 25% over the past two years
The Latvian residential real estate market has seen a 25% increase in foreign investors over the past two years.
This surge is partly due to the projected annual growth rate of 3.87% in the market from 2024 to 2029, making it a hot spot for international buyers. Such growth prospects are enticing for those looking to invest in a promising market.
The Latvia Golden Visa program is another magnet for foreign investors, offering long-term residency to those who invest in property. This program has significantly boosted interest, especially in bustling areas like Riga and Jurmala, where the property market is thriving with increased rental and sales activity.
Efforts by the Latvian government and the Foreign Investors' Council in Latvia are also playing a role. They are streamlining administrative processes and embracing technologies like artificial intelligence, making the investment landscape more attractive and efficient.
These initiatives are likely contributing to the rise in foreign investment in the residential real estate sector. The focus on improving the business environment is a strategic move to draw more international interest.
With these factors in play, Latvia is becoming a more appealing destination for property investors from around the globe, eager to capitalize on the country's growth and opportunities.
Sources: Global Citizen Solutions, LIAA, Latio
8) The average cost of renovating a home in Latvia has risen by 12% since 2023
The average cost of renovating a residential property in Latvia has increased by 12% since 2023.
One reason for this rise is the 6.60% increase in construction costs for new residential buildings in Latvia as of March 2024. This uptick affects renovation projects too, since they share similar materials and labor needs.
There's also a big push to make buildings more energy efficient, which is backed by financial support and grants, especially for multi-apartment buildings. These large-scale projects boost demand and drive up costs.
The economic climate, marked by high interest rates and inflation, has also played a role. This environment impacts buyers' purchasing power, which in turn influences renovation expenses.
Sources: Construction Cost of New Residential Buildings, Renovation Efforts and Financial Instruments, Economic Factors and Apartment Prices
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.