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Where are the best places to invest in Latvia right now? Is Riga still the top pick, or are cities like Jurmala, Liepaja, and Daugavpils gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Latvia and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Ventspils is gaining interest for its strategic port and commercial real estate potential
Ventspils is gaining attention for its strategic port location and potential in commercial real estate.
In 2022, the Port of Ventspils experienced a 33% increase in cargo throughput, reaching 14.7 million tonnes. This surge was fueled by more liquid bulk, dry bulk, and general cargo, showing the port's growing role as a logistics hub. Investments are pouring in, like BLNC Ltd's plan to invest up to €25 million in a drinking water storage terminal and export infrastructure, highlighting the port's potential.
The port is also embracing renewable energy, with plans for four solar parks, showcasing its forward-thinking approach. Ventspils' location in the European TEN-T transport core network boosts its appeal, making it a key transit point for exports like chemicals and grain. Recognized by fDi Intelligence as a top spot for business development, Ventspils is attracting large tenants and SMEs in Europe.
Commercial space demand in Ventspils is rising, thanks to the city's strong manufacturing industry growth. The development of industrial parks and the creation of over 1700 jobs since 2002 have significantly boosted the region's commercial real estate market. This growth is drawing more businesses to the area, eager to tap into the opportunities Ventspils offers.
Ventspils' strategic location and infrastructure investments are making it a hotspot for commercial real estate. The port's commitment to renewable energy and its role in the European transport network further enhance its attractiveness. With a thriving manufacturing sector and increasing demand for commercial space, Ventspils is poised for continued growth.
Sources: Port News, Port of Ventspils, Port of Ventspils Media
2) Kuldīga is gaining interest for its charming old town and tourism-driven real estate opportunities
Kuldīga is catching eyes for its charming old town and potential in tourism-related real estate.
In May 2024, Kuldīga welcomed 138.7 thousand non-resident visitors, a 15.5% jump from May 2023. This surge shows how Kuldīga is becoming a hot spot for tourists.
Since earning its UNESCO World Heritage status in 2020, Kuldīga has gained international fame. This recognition highlights the town's rich cultural and historical value, drawing in visitors eager to see its medieval architecture.
The buzz around Kuldīga is also catching the eye of international real estate investors. This interest is likely pushing up property prices in the old town, making it a prime spot for both tourists and investors.
With its unique blend of history and charm, Kuldīga offers a promising opportunity for those looking to invest in tourism-related real estate. The town's appeal is not just in its beauty but also in its potential for growth.
As more people discover Kuldīga, the demand for property in this picturesque town is expected to rise, making it an attractive option for savvy investors.
Sources: LSM, Euronews, UNESCO Kuldīga
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) Liepāja is booming thanks to its growing industry and cheap housing
Liepāja is buzzing with real estate interest thanks to its booming industrial sector and affordable property prices.
The city is on the move with projects like the Liepāja Sustainable Industry Hub, planning to pump over 4 billion euros into the local economy from 2025 to 2035. This includes exciting ventures like an Offshore Wind Support Base and a Hydrogen Production Plant, which promise to create a slew of skilled jobs.
Transforming the old "Liepajas Metalurgs" steel plant into a green industrial park is another big step. Located in the Liepāja Special Economic Zone (SEZ), this project is set to attract manufacturing companies eager to tap into resources like H2, CO2, O2, and thermal energy, further boosting Liepāja's industrial scene.
When it comes to property prices, Liepāja stands out for its affordability. In 2024, while cities like Daugavpils and Liepāja saw modest price hikes of 3-4%, Riga experienced a notable drop of 8.42% in June 2023. This makes Liepāja a sweet spot for those looking for value and growth potential.
With its industrial growth and affordable real estate, Liepāja is becoming a magnet for investors and buyers. The city's transformation is widely covered in the media, highlighting its potential as a real estate hotspot.
For anyone eyeing property in Latvia, Liepāja offers a compelling mix of opportunity and affordability, making it a prime choice for savvy investors.
Sources: BREL Forum, Art Estate, Liepāja SEZ, 137.lv
4) Cēsis is gaining attention for its historical charm and growing rural tourism interest
Cēsis is becoming a hot spot thanks to its charming historical architecture and the growing interest in rural tourism.
In recent years, more tourists have been flocking to Cēsis, with a noticeable uptick in 2023 and 2024. This surge is part of a larger trend in Latvia, where tourist arrivals at accommodations jumped by 9.1% in early 2024 compared to the previous year. The town's appeal lies in its unique blend of history and culture, drawing visitors eager for authentic experiences.
The "Culture for Sustainable Growth of Cēsis" project is a key player in this trend. This initiative aims to improve local life by showcasing the town's rich cultural heritage. By organizing cultural festivals and supporting local initiatives, it attracts visitors who are keen on rural tourism and cultural experiences. These efforts shine a spotlight on Cēsis's historical architecture and vibrant cultural events, making it a must-visit destination.
Latvia's travel and tourism market is on the rise, with a projected growth of 4.60% from 2024 to 2029. This growth is fueled by the demand for unique and authentic experiences, like those found in Cēsis. The town's historical sites and natural beauty are gaining traction on social media, further boosting its popularity.
Visitors are drawn to Cēsis not just for its history but also for its picturesque landscapes. The town's charm is amplified by its stunning natural surroundings, offering a perfect escape for those looking to unwind in a serene environment. This combination of history and nature makes Cēsis a compelling choice for potential property buyers.
Sources: Encouraging growth in Latvia's tourist numbers in May, Strategy "Culture for a sustainable growth of Cesis", Travel & Tourism - Latvia
5) Salaspils is attracting interest for its affordable homes and close proximity to Riga, perfect for commuters
Salaspils is becoming a hot spot for those working in Riga but seeking more affordable living options.
Just 18 kilometers from Riga, Salaspils offers a quick and easy commute with frequent trains and buses. This convenience is a major perk for those who want city access without the city price tag. The local government is actively promoting Salaspils as a prime location for young professionals and families, focusing on developing affordable and energy-efficient housing. This makes it an attractive option for those looking to move.
One of the biggest draws is the lower property prices compared to Riga. People are increasingly interested in Salaspils because they can find affordable housing while staying close to the city. Recent infrastructure improvements have made commuting even easier, enhancing its appeal for those who work in Riga.
Salaspils is not just about affordability; it's also about lifestyle. The area is being marketed as a great place to live, with a focus on community and quality of life. The local government is keen on making it a desirable place for families and young professionals, offering a balance of work and leisure.
With the population of Latvia growing, Salaspils is no exception. The demand for housing in suburban areas like Salaspils is on the rise, driven by its proximity to Riga and the promise of a better quality of life. The local government is committed to making Salaspils a top choice for those looking to relocate.
For commuters, the improved connectivity between Salaspils and Riga is a game-changer. The ease of travel makes it possible to enjoy the benefits of both worlds: the vibrant city life of Riga and the more relaxed, affordable living in Salaspils.
Sources: Salaspils County Tourism Information Centre, Worldometer, EIB Press Release
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6) Teika in Riga is attracting interest with affordable homes and potential appreciation as infrastructure improves
Teika in Riga is catching eyes for its affordable housing and growth potential.
Families are flocking to Teika because of its easy access and budget-friendly homes. This surge in interest is nudging property prices upward, making it a hot spot for both living and investing.
Infrastructure upgrades are a big part of this buzz. New transport links and ongoing gentrification are set to boost connectivity and accessibility in Teika, likely driving property values even higher.
Real estate experts are calling Teika an up-and-coming area with significant growth potential. The neighborhood's green spaces, efficient transport, and quality schools are major draws for young families and professionals.
Demographic shifts show more young professionals and families moving in, attracted by Teika's affordability and charm. This trend is adding to the area's appeal and potential for appreciation.
With these factors in play, Teika is becoming a prime choice for those looking to invest in a promising neighborhood.
Sources: Urban Treetops, Riga.lv
7) Jūrmala is thriving with its luxury beachfront properties attracting local and international vacation home buyers
Jūrmala is a hotspot for luxury beachfront properties, drawing in both local and international buyers.
These properties are in high demand due to their unique architectural designs and spacious layouts. This keeps the real estate market in Jūrmala buzzing with activity, as many buyers are on the hunt for high-quality, original homes.
The "golden mile" in Jūrmala is particularly sought after, with increasing property prices making it a prime location for luxury beachfront investments. Buyers from countries like Malta, Cyprus, and the United Kingdom are showing a growing interest, highlighting Jūrmala's global appeal.
Media coverage and testimonials boost Jūrmala's reputation as a top spot for vacation homes. Real estate agents often highlight the allure of beachfront properties, which are a hit among both local and international buyers.
The influx of tourists and seasonal residents is evident, with a rise in the number of nights spent by visitors in 2023 and 2024, showcasing the area's growing attraction.
Sources: Latvia Sotheby's Realty, LSM.lv, Latvia Sotheby's Realty
8) Ķīpsala in Riga is thriving with unique waterfront homes and high rental demand near the city center
Ķīpsala in Riga is a hot spot for real estate, thanks to its unique waterfront properties and closeness to the city center.
Waterfront properties in Riga are rare, and Ķīpsala stands out for its exclusivity. Most new buildings in the city are for personal use, making properties for sale in prime areas like Ķīpsala hard to come by. This scarcity fuels demand, turning Ķīpsala into a highly sought-after location.
Being close to Riga's major business and cultural hubs adds to Ķīpsala's charm. The area is buzzing with development plans, including new cultural and commercial spaces, which make it a convenient and desirable place to live. This proximity boosts its appeal and contributes to high rental demand.
Rental yields in Ķīpsala are impressive. While apartments in Riga can earn yields from 4.9% to 9.6%, waterfront properties in Ķīpsala could command even higher returns due to their exclusivity and demand.
Ķīpsala's allure is not just about the numbers; it's about lifestyle. Imagine living in a place where you can enjoy the serenity of the water while being just a stone's throw away from the vibrant city life. This unique blend of tranquility and convenience is what makes Ķīpsala a top choice for both residents and investors.
For those looking to invest, Ķīpsala offers a promising opportunity. The combination of high demand, limited supply, and strategic location means that properties here are likely to appreciate in value, making it a smart investment choice.
Sources: Arco Real Estate, Global Property Guide
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.
9) Sigulda is gaining interest for its scenic beauty and rising demand for second homes and holiday rentals
Sigulda is quickly becoming a hot market for property buyers.
Its scenic beauty is a major draw, often highlighted in media, making it a popular tourist spot. This charm is not just for show; it's pulling in more visitors every year, turning Sigulda into a bustling hub.
In 2023, 57% of all visitors to Latvia were non-residents, many of whom chose Sigulda as their destination. This surge in tourism has naturally increased the demand for holiday rentals, as visitors seek cozy places to stay.
Latvia's real estate market is on the upswing, with more new homes being built. This trend is likely spilling over into Sigulda, making it a prime spot for second homes. People are noticing, and social media is buzzing with interest in Sigulda as a desirable place to own a second home.
Sigulda's appeal isn't just about the views; it's about the lifestyle. The town offers a mix of adventure and relaxation, with activities like bobsledding and hiking, alongside serene parks and castles. This blend is attracting those looking for a getaway that feels like a home.
Sources: Global Property Guide, LSM.lv, LSM.lv
10) Valmiera is attracting investors with strong rental yields from its growing student population
Valmiera is catching the eye of investors thanks to its strong rental yields.
One big reason for this is the growing student population in the area. Vidzeme University of Applied Sciences (ViA) is seeing more students enrolling each year, which is boosting the demand for places to live. This surge in students means there's a high demand for student accommodation, making Valmiera a hot spot for those looking to invest in rental properties.
With more students comes a need for more housing, and right now, there's a shortage of rental properties in Valmiera. This scarcity is pushing rental yields even higher, which is great news for investors. The lack of available housing means that properties are likely to be rented out quickly, ensuring high occupancy rates for those who invest.
Real estate market reports are highlighting Valmiera as a prime location for rental investments. The combination of a growing student population and a high demand for accommodation creates a favorable environment for property investors. While we don't have specific testimonials from investors, the numbers speak for themselves.
Investors are finding Valmiera appealing because the demand for rental properties is outpacing supply. This dynamic is driving up rental yields, making it a lucrative opportunity for those looking to invest in real estate. The city's appeal is further enhanced by the fact that the student population is expected to continue growing, ensuring a steady demand for housing.
Sources: Global Property Guide, 4icu.org, Global Property Guide
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.