Authored by the expert who managed and guided the team behind the Latvia Property Pack
Yes, the analysis of Riga's property market is included in our pack
Are you curious about property prices in Riga and where they're heading in 2026?
This article breaks down current housing prices in Riga, recent trends, and forecasts for the coming years, all explained in plain language so you can make sense of the market without needing a finance degree.
We constantly update this blog post to keep it as fresh and useful as possible.
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 Riga.
Insights
- Riga property prices rose around 8% year-on-year through late 2025, with existing apartments outperforming new builds by more than double the growth rate.
- Standard Soviet-era apartments in Riga's large housing estates now average around €900 per square meter, up from €850 just twelve months earlier.
- The supply of apartments for sale in Riga dropped by 24% compared to the previous year, creating upward pressure on asking prices across most districts.
- Teika consistently ranks as one of the priciest large housing estates in Riga, yet demand remains strong because of its parks, schools, and transport links.
- New residential project activity in Riga jumped 46% in early 2025 compared to the same period in 2024, signaling renewed developer confidence in the market.
- The ECB deposit facility rate sits at 2.00% as of mid-2025, down from its peak, which has improved mortgage affordability for Riga buyers.
- Gross rental yields in central Riga range from 6.7% to 7.6%, making the capital competitive with other Baltic cities for buy-to-let investors.
- Latvia's population has declined 28% since 1990, but household formation and income growth continue to support housing demand in Riga.
- Rail Baltica construction is underway in Riga, with the new central station expected to reshape property values in nearby districts over the next decade.
What are the current property price trends in Riga as of 2026?
What is the average house price in Riga as of 2026?
As of early 2026, the average home price in Riga sits at roughly €120,000 (around $125,000 USD), though this blended figure covers everything from Soviet-era panel apartments to renovated city-centre flats and family houses.
When it comes to the price per square meter, Riga averages approximately €1,700/m² across all common residential property types, which works out to about $1,770 USD or €158 per square foot.
For most buyers searching in Riga, a realistic price range covering around 80% of purchases falls between €60,000 and €250,000 (roughly $63,000 to $260,000 USD), depending on whether you're looking at a compact standard apartment or a larger new-build or family home.
How much have property prices increased in Riga over the past 12 months?
Over the past 12 months, property prices in Riga have increased by an estimated 6% to 9%, depending on the segment, with the official Latvia-wide index showing around 8.4% annual growth through the third quarter of 2025.
Within Riga, the range of price increases varied quite a bit: standard-type apartments in large housing estates saw gains of roughly 2% to 5%, while renovated apartments and better-located stock climbed 6% to 10%, and new builds moved up 3% to 8%.
The single biggest factor behind this upward movement was the combination of tightening supply (listings down 24% year-on-year) and recovering buyer confidence as mortgage rates stabilized below their 2023 peak.
Which neighborhoods have the fastest rising property prices in Riga as of 2026?
As of early 2026, the top three neighborhoods with the fastest rising property prices in Riga are Teika, Jugla, and Imanta, all of which are large housing estates that have consistently outpaced the city average in recent months.
Annual price growth in these neighborhoods has ranged from approximately 5% to 10%, with Teika typically at the higher end due to its reputation for strong amenities and family-friendly environment, while Jugla and Imanta offer more affordable entry points that attract first-time buyers.
The main demand driver behind these price increases is the search for value: buyers priced out of the centre or new-build projects are turning to well-connected housing estates where they can get more space for their money without sacrificing transport links or local services.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Riga.
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 property types are increasing faster in value in Riga as of 2026?
As of early 2026, the ranking of property types by value appreciation in Riga places renovated energy-efficient apartments at the top, followed by well-priced new-build apartments, then standard Soviet-era apartments, and finally detached houses and townhouses which tend to move more slowly due to lower transaction volumes.
Renovated apartments in good locations have appreciated by roughly 6% to 10% over the past year, outperforming other segments because buyers prioritize move-in-ready homes with lower utility costs.
The main reason this property type is outperforming others is simple: energy efficiency matters more than ever in Riga, where cold winters make heating costs a significant part of monthly expenses, so buyers are willing to pay a premium for homes that won't drain their wallets every month.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Riga?
- How much should you pay for an apartment in Riga?
- How much should you pay for a studio in Riga?
What is driving property prices up or down in Riga as of 2026?
As of early 2026, the top three factors driving property prices in Riga are strong wage growth supporting purchasing power, stabilizing mortgage rates after the ECB's policy easing cycle, and a significant drop in available listings that has tightened supply across most segments.
Among these factors, wage growth has the strongest upward pressure on Riga property prices because Latvian salaries have been rising at roughly 6% annually in real terms, giving more households the financial capacity to enter the market or upgrade their current homes.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Riga here.
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What is the property price forecast for Riga in 2026?
How much are property prices expected to increase in Riga in 2026?
As of early 2026, property prices in Riga are expected to increase by approximately 6% over the course of the year, with most segments showing steady momentum rather than dramatic surges.
The realistic range of forecasts from different analysts spans from about 4% in a conservative scenario (if the economy underperforms) to around 10% in an optimistic scenario (if rates fall faster and confidence accelerates), so the middle ground sits comfortably in the 5% to 7% range.
The main assumption underlying most price increase forecasts for Riga is that Latvia's economy will grow around 2% to 3% this year while mortgage rates remain stable or drift slightly lower, supporting buyer demand without triggering a speculative boom.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Riga.
Which neighborhoods will see the highest price growth in Riga in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Riga are Teika, Āgenskalns, and Skanste, each driven by a mix of strong existing demand and ongoing development that raises the area's profile.
Projected price growth for these top neighborhoods ranges from 7% to 12% over the course of 2026, outpacing the city average because they combine lifestyle appeal with relatively limited new supply.
The primary catalyst driving expected growth in these areas is infrastructure and regeneration: Āgenskalns benefits from its near-centre charm and renovation wave, Teika from its established reputation and green spaces, and Skanste from new commercial and residential projects that are transforming the area's identity.
One emerging neighborhood that could surprise with higher-than-expected growth is Jugla, where prices remain affordable but improving transport connections and younger buyer interest are creating momentum that may accelerate in 2026.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Riga.
What property types will appreciate the most in Riga in 2026?
As of early 2026, the property type expected to appreciate the most in Riga is the renovated, energy-efficient apartment, particularly two-room formats in well-connected locations that appeal to the broadest buyer pool.
Projected appreciation for this top-performing property type is roughly 6% to 10% over the year, depending on the specific location and building quality.
The main demand trend driving appreciation for energy-efficient apartments in Riga is the growing awareness of utility costs: buyers have learned from recent winters that older, poorly insulated homes can cost a fortune to heat, making efficient properties worth more to both owner-occupiers and tenants.
On the other end, the property type expected to underperform in Riga is the unrenovated Soviet-era apartment with poor energy ratings and dated layouts, as these homes face a growing discount relative to better-quality alternatives.
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 will interest rates affect property prices in Riga in 2026?
As of early 2026, the impact of current interest rate trends on Riga property prices is moderately positive, as rates have come down from their 2023 peak and are expected to remain stable or edge slightly lower, which supports buyer confidence and affordability.
The ECB's deposit facility rate currently stands at 2.00% (as of mid-2025), and most forecasters expect Euribor-linked mortgage rates in Latvia to stay in the 4% to 5% range through 2026, which is meaningfully better than the 5.5% to 6% levels seen in 2023 and 2024.
Historically in Riga, a 1% change in mortgage rates typically shifts affordability by about 8% to 10% in terms of how much buyers can afford to pay, which means the current rate environment is adding roughly €10,000 to €15,000 to the budget of a typical borrower compared to peak-rate conditions.
You can also read our latest update about mortgage and interest rates in Latvia.
What are the biggest risks for property prices in Riga in 2026?
As of early 2026, the top three biggest risks for property prices in Riga are a broader European economic slowdown that would hit Latvia's exports and employment, unexpected mortgage credit tightening even if ECB rates stay low, and overbuilding in certain micro-locations where too many similar new projects compete for the same buyers.
Among these risks, the one with the highest probability of materializing in Riga is localized new-build oversupply, since several large projects are coming to market around the same time, which could lead to price competition and discounting in those specific areas even if the broader market remains healthy.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Riga.
Is it a good time to buy a rental property in Riga in 2026?
As of early 2026, the overall assessment for buying a rental property in Riga is cautiously positive: yields remain attractive at 6% to 8% gross in central areas, prices are rising but not overheated, and rental demand is solid thanks to urbanization and limited new supply in the best locations.
The strongest argument in favor of buying now is that Riga rents have been climbing 6% to 7% annually while financing costs have stabilized, which means cash flow is improving and entry prices are still reasonable compared to other European capitals.
On the other hand, the strongest argument for waiting is that some analysts expect further rate cuts in 2026, which could make financing even cheaper in six to twelve months, and there may be opportunities to negotiate better prices if any new-build oversupply emerges in specific districts.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Riga.
You'll also find a dedicated document about this specific question in our pack about real estate in Riga.
Buying real estate in Riga 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.
Where will property prices be in 5 years in Riga?
What is the 5-year property price forecast for Riga as of 2026?
As of early 2026, cumulative property price growth in Riga over the next five years is expected to reach approximately 25% to 30% in a base-case scenario, meaning a home worth €100,000 today could be worth €125,000 to €130,000 by early 2031.
The range of 5-year forecasts spans from about 20% total growth in a conservative scenario (slower economic recovery, stagnant wages) to around 35% in an optimistic scenario (faster EU convergence, stronger rental demand), with the middle ground reflecting steady but unspectacular gains.
This translates to a projected average annual appreciation rate of roughly 4.5% to 5.5% per year over the next five years in Riga, which is in line with typical European capital performance and Latvia's expected economic growth trajectory.
The key assumption most forecasters rely on for their 5-year Riga predictions is that Latvia's wages will continue growing faster than the EU average, which supports housing demand even if population numbers remain flat or decline slightly.
Which areas in Riga will have the best price growth over the next 5 years?
The top three areas in Riga expected to have the best price growth over the next five years are Skanste (benefiting from ongoing development and commercial regeneration), Āgenskalns (near-centre lifestyle appeal with renovation momentum), and Teika (established family-friendly reputation with consistently strong demand).
Projected 5-year cumulative price growth for these top-performing areas ranges from 30% to 45%, outpacing the city average because each combines structural demand drivers with either limited new supply or transformative development that raises the area's reference prices.
This 5-year forecast largely aligns with the shorter-term view but with one key difference: areas like Skanste will likely accelerate relative to housing estates as more development completes and the neighborhood matures, while estates like Teika may see steadier but less dramatic gains.
The currently undervalued area with the best potential for outperformance over five years is Jugla, where prices remain significantly below the city average despite improving infrastructure and growing interest from younger buyers seeking affordable entry points.
What property type will give the best return in Riga over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over five years in Riga is the well-located two-room apartment in renovated or efficient condition, which combines solid capital appreciation with strong rental demand and easy resale liquidity.
The projected 5-year total return (appreciation plus rental income) for this top-performing property type is roughly 50% to 65%, assuming roughly 5% annual price growth plus 6% to 7% gross rental yields, though net returns will be lower after costs and taxes.
The main structural trend favoring this property type over the next five years in Riga is household composition: smaller households, young professionals, and tenants all gravitate toward efficient two-room apartments, creating a deep and reliable demand pool.
For investors seeking the best balance of return and lower risk, the safest bet in Riga is a renovated apartment in a near-centre district like Āgenskalns or Teika, where both rental demand and resale liquidity remain strong even in weaker market conditions.
How will new infrastructure projects affect property prices in Riga over 5 years?
The top three major infrastructure projects expected to impact Riga property prices over the next five years are the Rail Baltica central station and railway development, the Daugava River bridge project connecting new transport routes, and ongoing urban regeneration efforts in districts like Skanste and near the waterfront.
The typical price premium for properties near completed infrastructure projects in Riga ranges from 10% to 20% compared to similar properties further away, though this premium often takes several years to fully materialize as the infrastructure becomes operational and the neighborhood adapts.
The neighborhoods that will benefit most from these infrastructure developments are the areas immediately surrounding the new Rail Baltica station, Skanste where commercial and residential development is already underway, and districts along improved transport corridors like Torņakalns and parts of Āgenskalns.
How will population growth and other factors impact property values in Riga in 5 years?
Latvia's population is projected to continue its gradual decline at roughly 0.5% to 1% per year, which sounds negative but actually has a nuanced impact on Riga property values because the capital continues to attract internal migration from smaller towns while household sizes shrink, maintaining demand for housing units.
The demographic shift with the strongest influence on Riga property demand over the next five years is the trend toward smaller households: more single-person and couple households mean more total units needed even if the overall population stays flat, which supports apartment demand in particular.
Migration patterns will have a mixed effect on Riga property values: the city continues to draw working-age Latvians from rural areas and smaller cities, while international migration remains modest but includes some higher-income expatriates and investors attracted by the residence-by-investment program.
The property types and areas that will benefit most from these demographic trends are efficient one- and two-room apartments in well-connected locations, particularly in districts popular with young professionals and small families like Āgenskalns, Teika, and parts of Centrs.
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 is the 10 year property price outlook in Riga?
What is the 10-year property price prediction for Riga as of 2026?
As of early 2026, cumulative property price growth in Riga over the next 10 years is expected to reach approximately 45% to 80% in nominal terms, meaning a property worth €100,000 today could be worth €145,000 to €180,000 by early 2036.
The range of 10-year forecasts spans from about 45% total growth in a conservative scenario (slow EU convergence, demographic headwinds) to around 80% in an optimistic scenario (faster income growth, stronger EU integration benefits), with the base case sitting around 55% to 65%.
This translates to a projected average annual appreciation rate of roughly 4% to 6% per year over the next decade in Riga, which reflects steady European-capital-style growth rather than a speculative boom.
The biggest uncertainty factor in making 10-year property price predictions for Riga is the trajectory of Latvia's demographics and whether wage growth can continue outpacing the EU average, as these factors will determine whether domestic demand remains strong enough to support price growth.
What long-term economic factors will shape property prices in Riga?
The top three long-term economic factors that will shape property prices in Riga over the next decade are real wage growth (the engine of housing demand), construction costs and capacity (which set a floor for new-build pricing), and the interest rate regime in the euro area (which determines how much buyers can afford to borrow).
The single long-term economic factor with the most positive impact on Riga property values is sustained wage growth: Latvia's wages are expected to continue converging toward Western European levels, which directly increases how much households can pay for housing.
On the risk side, the long-term economic factor posing the greatest structural threat to Riga property values is demographic decline, as Latvia's population has fallen 28% since 1990 and further losses could eventually constrain demand, particularly in less desirable locations and property types.
You'll also find a much more detailed analysis in our pack about real estate in Riga.
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 Riga, 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 |
|---|---|---|
| Latvia Central Statistical Bureau (CSP) | Latvia's official statistics office with consistent methodology across time. | We used it to anchor official year-on-year and quarter-on-quarter price changes for Latvia. We then translated index movements into Riga-specific insights using local benchmarks. |
| LV Portāls (CSP press releases) | Directly relays CSP's newest published headline numbers and breakdowns. | We used it as the cleanest reference point for the latest 12-month change heading into January 2026. We cross-checked it against CSP table publication dates. |
| PxWeb (CSP data portal) | The underlying official database behind CSP's published series. | We used it to verify table coverage through 2025 Q3 and treat it as the source of truth for the index timeline. |
| European Central Bank (ECB) | The primary source for euro-area policy rates that drive mortgage pricing. | We used it to ground the interest-rate backdrop entering 2026 with the deposit facility at 2.00%. We discussed how this flows into Baltic mortgage rates. |
| European Commission | Official EU forecast with comparable assumptions across member states. | We used it to frame 2026 inflation and macro conditions affecting purchasing power. We triangulated it with Latvia's central bank forecasts. |
| Latvijas Banka | Latvia's central bank publishing baseline macro forecasts and assumptions. | We used it to anchor Latvia's expected 2026 growth path as a key demand driver for housing. We translated the macro outlook into price growth scenarios. |
| Macroeconomics.lv (Latvijas Banka) | Maintained by Latvijas Banka with the latest forecast narrative. | We used it to capture the most recent forecast tone heading into January 2026. We applied it as a sensitivity check for our 2026 scenario range. |
| Ober-Haus Baltic Market Report | Long-running regional real estate adviser with transparent market snapshots. | We used it for Riga-specific price bands by segment including Soviet-era and new-build categories. We rolled forward those ranges using the latest index data. |
| ARCO Real Estate | Major Latvian market participant publishing recurring methodology-consistent snapshots. | We used it as our key street-level benchmark for standard panel apartments. We extrapolated from late-2025 momentum to estimate January 2026 levels. |
| Swedbank Housing Affordability Index | Major Baltic lender with a clear affordability methodology. | We used it to translate rates and wages into affordability pressure. We linked affordability trends to likely 2026 demand recovery scenarios. |
| IMF World Economic Outlook | Flagship international macro dataset used by governments and central banks. | We used it to frame big-picture risks including trade, growth, and inflation. We applied it mainly for scenario-building rather than Riga-level pricing. |
| Global Property Guide | Independent property data provider covering rental yields across countries. | We used it to benchmark Riga rental yields and validate our return calculations. We cross-referenced with local sources for accuracy. |
| Rail Baltica | Official project coordinator for the largest Baltic infrastructure development. | We used it to assess infrastructure impact on Riga property values. We identified which neighborhoods will benefit from station and corridor development. |
| OECD Economic Surveys | Respected international organization providing structural economic analysis. | We used it to understand Latvia's long-term growth drivers and housing affordability challenges. We incorporated their policy recommendations into our outlook. |
| Worldometer / UN Population Data | Aggregates official UN population statistics and projections. | We used it to assess demographic trends affecting Riga housing demand. We translated population dynamics into property market implications. |
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If you want to go deeper, you can read the following: