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 property market in early 2026 offers foreign buyers a mix of affordable Soviet-era apartments and modern new builds, with Riga commanding the lion's share of investment activity.
Financing conditions and interest rates matter more than hype in this market, as falling ECB rates have revived buyer demand while keeping prices relatively stable compared to Western Europe.
We constantly update this blog post with fresh data from authoritative sources to give you the most current picture of where to buy residential property in Latvia.
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.
What's the Current Real Estate Market Situation by Area in Latvia?
Which areas in Latvia have the highest property prices per square meter in 2026?
As of early 2026, the three areas in Latvia with the highest property prices per square meter are Vecrīga (Old Town) in Riga, Centrs and Klusais centrs (the Quiet Centre), and Jūrmala's beachfront zones, where new builds and renovated apartments command premium prices.
In these most expensive areas of Latvia, typical prices range from around €2,500 to €4,200 per square meter for standard renovated stock, while exclusive new-build penthouses and premium properties in Vecrīga can reach €5,000 to €7,000 per square meter.
Each of these high-priced Latvia neighborhoods commands top euro values for distinct reasons:
- Vecrīga (Old Town): UNESCO heritage status, walkable cobblestone streets, and tourist-driven short-term rental demand.
- Centrs and Klusais centrs: Art Nouveau architecture, embassy proximity, and appeal to expats seeking walkable city living.
- Jūrmala beachfront: Seasonal prestige, beach access, and status as Latvia's traditional resort town for wealthy buyers.
Which areas in Latvia have the most affordable property prices in 2026?
As of early 2026, the most affordable areas to buy property in Latvia are Riga's outer microdistricts like Bolderāja, Vecmīlgrāvis, Ķengarags, and Iļģuciems, where Soviet-era standard-type apartment blocks dominate the housing stock.
In these budget-friendly Latvia neighborhoods, typical prices range from approximately €630 to €850 per square meter, making them accessible entry points for first-time buyers and yield-focused investors.
The main trade-offs when buying in these lower-priced areas of Latvia include longer commutes to central Riga, older building infrastructure that may require renovation, and thinner resale liquidity compared to central neighborhoods, though Bolderāja and Vecmīlgrāvis in particular have more limited public transport options and smaller tenant pools.
You can also read our latest analysis regarding housing prices 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.
Which Areas in Latvia Offer the Best Rental Yields?
Which neighborhoods in Latvia have the highest gross rental yields in 2026?
As of early 2026, the neighborhoods in Latvia with the highest gross rental yields are Purvciems and Pļavnieki (7 to 10% gross), Imanta and Zolitūde (7 to 9% gross), and Vecrīga (Old Town) for well-managed short-term rentals (8 to 10% gross), all located in Riga where renter demand is concentrated.
Across Latvia as a whole, typical gross rental yields for investment properties range from approximately 5% in prime central locations to nearly 10% in affordable outer microdistricts, with the national average sitting around 7.9% according to mid-2025 data.
Each of these top-yielding Latvia neighborhoods delivers higher returns for specific reasons:
- Purvciems and Pļavnieki: large renter pools of working professionals, moderate purchase prices, and steady long-term demand.
- Imanta and Zolitūde: good public transport links, affordable entry prices, and consistent tenant interest from young families.
- Vecrīga (Old Town): tourist traffic drives short-term rental premiums, though regulation and competition require careful management.
- Ķengarags and Iļģuciems: very low purchase prices boost yields on paper, but building quality varies block by block.
Finally, please note that we cover the rental yields in Latvia here.
Make a profitable investment in Latvia
Better information leads to better decisions. Save time and money. Download our guide.
Which Areas in Latvia Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Latvia perform best on Airbnb in 2026?
As of early 2026, the neighborhoods in Latvia that perform best on Airbnb are Centrs, Vecrīga (Old Town), and Avoti in Riga, where the highest concentration of active short-term rental listings attracts steady tourist bookings throughout the year.
In these top-performing Airbnb neighborhoods of Latvia, typical monthly revenues for well-managed one-bedroom apartments range from approximately €800 to €1,500, with premium units in Vecrīga occasionally exceeding €2,000 during peak summer months and holiday periods.
Each of these Latvia neighborhoods outperforms others for short-term rentals due to distinct factors:
- Centrs: walkable access to restaurants, nightlife, and business hotels draws both tourists and short-stay professionals.
- Vecrīga (Old Town): UNESCO heritage sites and cobblestone charm make it the default choice for first-time Riga visitors.
- Avoti: central-adjacent location with lower nightly rates appeals to budget-conscious travelers seeking authenticity.
- Āgenskalns: wooden architecture and a growing cafe scene attract design-conscious visitors willing to cross the river.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Latvia.
Which tourist areas in Latvia are becoming oversaturated with short-term rentals?
The three tourist areas in Latvia most at risk of short-term rental oversaturation are Vecrīga (Old Town), Centrs, and select blocks of Avoti in Riga, where listing density has grown faster than tourist arrivals in recent years.
In these oversaturated areas of Latvia, the Inside Airbnb dataset shows several hundred active listings within a few square kilometers, meaning competition for the same pool of visitors keeps intensifying every season.
The clearest sign that these Latvia areas have reached oversaturation is when multiple units in the same building are listed on Airbnb, forcing hosts to compete on price rather than scarcity, and when Riga's municipal tourism fee adds compliance costs that further squeeze already thin margins.
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.
Which Areas in Latvia Are Best for Long-Term Rentals?
Which neighborhoods in Latvia have the strongest demand for long-term tenants?
The neighborhoods in Latvia with the strongest demand for long-term tenants are Centrs, Teika, Purvciems, and Āgenskalns in Riga, where proximity to jobs, universities, and daily amenities creates consistent year-round renter interest.
In these high-demand Latvia neighborhoods, well-priced apartments typically find tenants within 10 to 20 days, compared to 30 to 45 days in less popular areas, reflecting the tight vacancy rates of around 4 to 6% in central Riga.
Different tenant profiles drive demand in each of these Latvia neighborhoods:
- Centrs: white-collar professionals, embassy staff, and international tenants seeking walkable city living.
- Teika: local middle-class families drawn by good schools, green spaces, and established neighborhood services.
- Purvciems and Pļavnieki: budget-conscious working renters who prioritize affordability and public transport access.
- Āgenskalns: young professionals and creatives attracted by the cafe scene and renovated wooden architecture.
The key amenity that makes these Latvia neighborhoods especially attractive to long-term tenants is reliable public transport, with tram and bus connections to central Riga allowing 20 to 30 minute commutes, plus access to supermarkets, pharmacies, and parks within walking distance.
Finally, please note that we provide a very granular rental analysis in our property pack about Latvia.
What are the average long-term monthly rents by neighborhood in Latvia in 2026?
As of early 2026, average long-term monthly rents in Latvia's main Riga neighborhoods range from approximately €350 for studios in outer districts like Purvciems to €1,200 or more for renovated two-bedroom apartments in Vecrīga or Klusais centrs.
In the most affordable neighborhoods of Latvia like Bolderāja and Vecmīlgrāvis, entry-level one-bedroom apartments typically rent for €300 to €450 per month plus utilities, making them accessible for budget-conscious tenants.
In mid-range Latvia neighborhoods like Teika, Āgenskalns, and Imanta, typical rents for two-bedroom apartments fall between €500 and €750 per month plus utilities, offering a balance of space and location.
In the most expensive neighborhoods of Latvia like Vecrīga (Old Town), Centrs, and Klusais centrs, high-end two-bedroom apartments command €900 to €1,500 per month plus utilities, reflecting premium finishes and walkable city living.
You may want to check our latest analysis about the rents in Latvia here.
Get fresh and reliable information about the market in Latvia
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Which Are the Up-and-Coming Areas to Invest in Latvia?
Which neighborhoods in Latvia are gentrifying and attracting new investors in 2026?
As of early 2026, the neighborhoods in Latvia that are gentrifying and attracting new investors are Āgenskalns, Avoti, Grīziņkalns, and Brasa in Riga, where renovated wooden architecture, new cafes, and improving streetscapes signal transformation in progress.
These gentrifying Latvia neighborhoods have experienced annual price appreciation of approximately 3 to 7% over recent years, outpacing the Riga average, with Āgenskalns in particular showing strong transaction activity as renovated properties attract both local and foreign buyers.
Which areas in Latvia have major infrastructure projects planned that will boost prices?
The areas in Latvia with major infrastructure projects expected to boost property prices are central Riga around the new Rail Baltica Central Station, the Riga Airport corridor, and the Skanste business district, all of which will benefit from improved connectivity once construction milestones are reached.
The most significant infrastructure project underway is the Rail Baltica high-speed rail network, with essential works at Riga Central Station targeted for completion by August 31, 2026, and finishing works by December 31, 2026, creating a new multimodal transport hub linking the Baltic capitals to Warsaw and the broader European rail network.
Historically, major infrastructure completions in Latvia have supported price increases of 5 to 15% in well-connected neighborhoods within two to three years, as improved transit access attracts both residents seeking shorter commutes and investors anticipating rental demand growth.
You'll find our latest property market analysis about Latvia here.
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.
Which Areas in Latvia Should I Avoid as a Property Investor?
Which neighborhoods in Latvia with lots of problems I should avoid and why?
The neighborhoods in Latvia where investors should exercise extra caution are the lowest-priced Riga microdistricts like Bolderāja and Vecmīlgrāvis, select blocks of Ķengarags with poorly maintained buildings, and heavily touristed Old Town locations where STR competition and regulation create unpredictable returns.
Each of these challenging Latvia neighborhoods has specific issues that require careful due diligence:
- Bolderāja: thin resale liquidity and limited public transport make exit strategies uncertain.
- Vecmīlgrāvis: industrial surroundings and smaller tenant pools reduce long-term rental stability.
- Ķengarags (select blocks): aging Soviet-era buildings with deferred maintenance can trigger sudden repair costs.
- Vecrīga (for pure STR plays): saturated Airbnb supply and municipal fees squeeze margins for inexperienced operators.
For any of these Latvia neighborhoods to become viable investment options, building-level maintenance funds would need to improve, public transport connections would need to expand, and in the case of Vecrīga, STR regulation would need to stabilize so operators can plan with confidence.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Latvia.
Which areas in Latvia have stagnant or declining property prices as of 2026?
As of early 2026, the areas in Latvia with stagnant or underperforming property prices are the outer Riga microdistricts with the lowest demand, including parts of Bolderāja and Vecmīlgrāvis, as well as units in any neighborhood with poor energy performance or looming building repairs.
These stagnating Latvia areas have seen price movements close to flat or below inflation over the past two to three years, meaning real-term values have effectively declined by 2 to 4% annually once purchasing power is accounted for.
The underlying causes of price stagnation differ across these Latvia areas:
- Bolderāja: distance from central Riga and limited amenities reduce buyer interest beyond pure yield seekers.
- Vecmīlgrāvis: industrial character and smaller population base limit both tenant demand and resale liquidity.
- Energy-inefficient units (any neighborhood): buyers in a higher-rate environment are extremely selective, avoiding buildings with high heating costs.
Buying real estate in Latvia can 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.
Which Areas in Latvia Have the Best Long-Term Appreciation Potential?
Which areas in Latvia have historically appreciated the most recently?
The areas in Latvia that have historically appreciated the most over recent years are Jugla, Āgenskalns, Imanta, and Ķengarags in Riga, where mid-priced housing stock has caught up toward city averages as buyer demand spread beyond traditional prime locations.
Each of these top-performing Latvia areas has achieved notable appreciation:
- Jugla: price increases of over 2% in early 2025 alone, among the fastest-growing Riga microdistricts.
- Āgenskalns: cumulative gains of 15 to 25% over five years as gentrification attracted new buyers and cafes.
- Imanta: steady 3 to 5% annual growth driven by improved amenities and public transport links.
- Ķengarags: 4 to 6% annual gains in well-maintained blocks as affordability seekers moved outward from central Riga.
The main driver behind this above-average appreciation in Latvia was the combination of constrained central supply, falling interest rates that expanded buyer budgets, and growing recognition that these neighborhoods offer strong value relative to prime locations.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Latvia.
Which neighborhoods in Latvia are expected to see price growth in coming years?
The neighborhoods in Latvia expected to see the strongest price growth in coming years are Centrs, Āgenskalns, Skanste, and Teika in Riga, where a combination of transit improvements, new development, and sustained professional demand supports continued appreciation.
Projected annual price growth for these high-potential Latvia neighborhoods breaks down as follows:
- Centrs: 4 to 6% annually as Rail Baltica connectivity benefits professionals seeking central access.
- Āgenskalns: 5 to 7% annually as gentrification momentum continues and new cafes and services open.
- Skanste: 4 to 6% annually driven by new-build energy-efficient developments near business clusters.
- Teika: 3 to 5% annually as families and professionals value its established services and green spaces.
The single most important catalyst expected to drive future price growth in these Latvia neighborhoods is the completion of Rail Baltica infrastructure milestones in 2026 and 2027, which will reduce commute times and position Riga as a better-connected Baltic capital.
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 Do Locals and Expats Really Think About Different Areas in Latvia?
Which areas in Latvia do local residents consider the most desirable to live?
The areas in Latvia that local residents consider most desirable to live are Mežaparks, Teika, Klusais centrs (Quiet Centre), and select parts of Āgenskalns in Riga, where green spaces, established services, and neighborhood character create lasting appeal.
Each of these locally preferred Latvia areas has a distinct quality that residents value:
- Mežaparks: forest park setting, low density, and prestige as Riga's traditional affluent residential area.
- Teika: family-friendly streets, good schools, and a mix of Soviet-era and newer housing with mature trees.
- Klusais centrs: Art Nouveau architecture, quiet streets near the city center, and walkable access to parks.
- Āgenskalns: charming wooden houses, growing cafe culture, and a village-like feel within the city.
These locally desirable Latvia neighborhoods attract established middle-class families, professionals seeking quality of life, and older residents who have lived in the same area for decades.
Local preferences in Latvia tend to emphasize green space, quietness, and community stability, which sometimes differs from foreign investor priorities that focus more on rental yield and central walkability.
Which neighborhoods in Latvia have the best reputation among expat communities?
The neighborhoods in Latvia with the best reputation among expat communities are Centrs, Vecrīga (Old Town), Klusais centrs, and Āgenskalns in Riga, where walkability, English-friendly services, and international amenities create comfortable landing zones.
Expats prefer these Latvia neighborhoods over others for practical reasons:
- Centrs: central location, international restaurants, and easy access to embassies and business services.
- Vecrīga (Old Town): historic charm, tourist infrastructure, and the experience of living in a UNESCO site.
- Klusais centrs: quieter alternative to the Old Town with Art Nouveau beauty and park access.
- Āgenskalns: creative vibe, lower rents than the center, and an emerging scene that attracts younger expats.
The typical expat profile in these popular Latvia neighborhoods includes embassy staff and diplomats in Klusais centrs, remote workers and digital nomads in Āgenskalns, and short-term corporate assignees in Centrs and Vecrīga.
Which areas in Latvia do locals say are overhyped by foreign buyers?
The three areas in Latvia that locals commonly say are overhyped by foreign buyers are Vecrīga (Old Town), central Jūrmala beachfront properties, and select premium new-build projects in Skanste that prioritize marketing over neighborhood integration.
Locals believe these Latvia areas are overvalued or overhyped for specific reasons:
- Vecrīga (Old Town): foreigners pay premiums without understanding building maintenance costs, HOA governance issues, and tourist noise.
- Jūrmala beachfront: seasonal appeal masks year-round low occupancy, limited local services, and ongoing commute hassles.
- Select Skanste new-builds: glossy marketing can obscure the fact that the neighborhood lacks organic street life and amenities.
Foreign buyers typically see historic charm, beach access, and modern finishes in these Latvia areas, while locals know that building condition, year-round livability, and actual neighborhood community matter more for long-term satisfaction.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Latvia.
Which areas in Latvia are considered boring or undesirable by residents?
The areas in Latvia that residents commonly consider boring or undesirable are the outer Riga microdistricts like Bolderāja, Vecmīlgrāvis, and parts of Ziepniekkalns, where uniform Soviet-era housing blocks, limited nightlife, and fewer amenities create a purely functional living experience.
Residents find these Latvia areas boring or undesirable for distinct reasons:
- Bolderāja: industrial surroundings, distance from central Riga, and few cafes or cultural venues.
- Vecmīlgrāvis: port-adjacent location, limited public transport frequency, and minimal retail variety.
- Parts of Ziepniekkalns: homogeneous apartment blocks with little street character or neighborhood identity.
That said, these "boring" Latvia neighborhoods can still deliver excellent rental yields for investors focused purely on cashflow rather than lifestyle appeal.
Don't lose money on your property in Latvia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Latvia Central Statistical Bureau (CSB) | Latvia's official statistics agency for housing, inflation, and population data. | We anchored national context like wage trends and housing indices. We used it to sanity-check private market reports against official macro trends. |
| ARCO Real Estate | Long-running Baltic brokerage with published monthly microdistrict price tables. | We used it for neighborhood-level price per square meter data for standard-type apartments. We rolled late-2025 figures forward to estimate early-2026 values. |
| Global Property Guide | Respected international property data provider with consistent yield methodology. | We referenced it for gross rental yield calculations and rent medians. We used it to triangulate our neighborhood-level yield estimates. |
| Latvia Sotheby's International Realty | Premium segment specialist with detailed transaction volume reporting. | We used it to benchmark prime Riga and Jūrmala pricing. We referenced their H1 2025 market report for premium segment trends. |
| Colliers Baltics | Global consultancy with consistent Baltic residential market research. | We used it to triangulate market direction and supply pipeline data. We treated it as market narrative and quantified using other sources. |
| Inside Airbnb | Independent research dataset with reproducible downloads and clear definitions. | We quantified where short-term rental listings concentrate in Riga. We used it to identify saturation risk by neighborhood. |
| Rail Baltica | Official project hub for the Baltic high-speed rail infrastructure initiative. | We verified construction milestones and timeline targets. We linked infrastructure progress to neighborhood appreciation potential. |
| LSM (Latvian Public Media) | Latvia's public broadcaster reporting on official infrastructure announcements. | We used it to pin Rail Baltica station timelines to concrete dates. We linked those dates to which neighborhoods benefit first. |
| Saeima (Latvian Parliament) | Legislature publishing binding laws on foreign buyer restrictions. | We stated who is restricted from buying property in Latvia. We flagged this as a due-diligence item for foreign buyers. |
| State Land Service (VZD) | State body responsible for cadastral records and property verification. | We referenced it as the authoritative source for verifying property details. We explained why cadastral value differs from market price. |
Get the full checklist for your due diligence in Latvia
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.