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
What do the latest numbers reveal about Riga’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods 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 Riga, 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) By 2025, 35% of Riga's residential properties will be in suburban areas
In 2025, 35% of residential properties in Riga are located in suburban areas.
Riga's property market is diverse, offering a mix of locations and property types. Back in 2023, there was a significant availability of new apartments, with 570 new units in the city center and 440 in the Jugla district, a suburban area. This shows a balanced focus on both central and suburban developments, which has contributed to the growth of suburban residential properties.
Riga is increasingly popular for property buyers, especially those seeking rental income. Suburban areas are attractive because they often provide more space and potentially lower costs, making them appealing to both investors and residents looking for affordable housing options.
Suburban areas like Jugla offer a different lifestyle compared to the bustling city center. They provide a quieter environment, which is ideal for families and those who prefer a more relaxed pace. This shift towards suburban living is part of a broader trend where people are seeking more spacious and cost-effective living arrangements.
Investors are also drawn to these areas due to the potential for higher returns. With the demand for rental properties rising, suburban areas present a lucrative opportunity. The combination of affordable property prices and increasing rental demand makes these areas a smart choice for investment.
As Riga continues to develop, the suburban areas are expected to grow even more. This growth is supported by the city's infrastructure improvements, making suburban living more convenient and accessible. The ongoing development in these areas is a testament to their increasing popularity and potential for future growth.
Sources: Jauns.lv, Global Citizen Solutions
2) By 2025, a one-bedroom apartment in Riga will rent for €600 monthly
In 2025, the average monthly rent for a one-bedroom apartment in Riga is €600.
Over the past few years, Riga's rental market has been quite stable. In 2023 and 2024, you could find a variety of rental options, with prices starting as low as €250 for studios and shared apartments. This stability in the market has set the stage for the current average rent.
High-demand areas, especially the city center, have shown potential for price increases. Rental yields in these areas were generally below 5%, but they were the highest in central locations. This means that while places like the Old Town had higher rents, the overall market balance contributed to the average rent of €600 for a one-bedroom apartment.
Riga's attractive tax rate of 10% on rental income has likely encouraged more property investments. This influx of investments could have helped stabilize rental prices by increasing the supply of rental properties, making it easier to find a place to live.
These factors from the past few years help explain why the average rent for a one-bedroom apartment in Riga is €600 in 2025. The combination of stable market conditions and strategic investments has played a crucial role in shaping the current rental landscape.
For anyone considering buying property in Riga, understanding these dynamics is key. The market's stability and potential for growth make it an attractive option for investors and renters alike.
Sources: Spotahome, Residency Bond, Booking.com
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) The cost of living in Riga rose by 3% in 2024
The average cost of living in Riga increased by 3% in 2024.
One major factor behind this rise is the persistent inflation that Latvia has been grappling with. In June 2023, inflation was at 7.9%, which, while lower than the previous year's 19.3%, was still much higher than the historical average from 2010 to 2021. This ongoing inflation has likely pushed up the prices of everyday goods and services, making life in Riga more expensive.
Adding to the situation, Latvia's economy has been experiencing a slowdown. The projected real GDP growth rate for 2024 is just 1.4%, which is quite modest. This economic deceleration could have affected consumer spending habits, further influencing the cost of living in the city.
In the real estate sector, Riga saw some interesting trends. Apartment prices dropped in 2023, which might seem like a relief for potential buyers. However, this decline in real estate prices wasn't enough to counterbalance the rising costs in other areas, contributing to the overall increase in living expenses.
For those considering buying property in Riga, it's essential to understand these dynamics. While the real estate market might offer some opportunities, the broader economic factors, like inflation and GDP growth, play a significant role in shaping the cost of living.
Understanding these elements can help potential buyers make informed decisions, especially when considering the long-term financial implications of purchasing property in a city where the cost of living is on the rise.
Source: Global Property Guide
4) Property transactions in Riga rose by 7% in 2024
In 2024, property transactions in Riga rose by 7% from the previous year.
Foreign investment was a major driver of this growth. Buyers from countries like Russia, Ukraine, China, Kazakhstan, and Uzbekistan found Riga attractive due to its affordable property prices and favorable visa policies. This influx of international buyers significantly increased demand, leading to more transactions.
The Latvian government also played a part by introducing initiatives to lure foreign buyers. One such initiative was the residence permit program for non-EU nationals investing in real estate. This program made it more appealing for international investors to purchase properties in Riga, further boosting transaction numbers.
Riga's real estate market benefited from these factors, creating a vibrant environment for property transactions. The combination of foreign interest and government incentives created a perfect storm for growth.
As a result, the city saw a noticeable uptick in property deals, reflecting the broader trends in the Latvian real estate market. This growth was not just a blip but part of a larger pattern of increasing international interest.
With these dynamics at play, Riga's property market became a hotspot for both local and international buyers, contributing to the overall rise in transactions.
Sources: Global Property Guide, Statista
5) New residential construction projects in Riga increased by 15% in 2024
In 2024, Riga saw a 15% rise in new residential construction projects.
This boom is partly due to a 2% increase in real estate transactions in the latter half of 2023 and a 7% rise compared to the first half. Such growth signals a bustling market, likely motivating developers to break ground on new projects.
Most transactions fell within the €100,000 to €150,000 range, highlighting a strong demand for mid-range housing. The average price per square meter in new projects was €2,298 by mid-2024. Although this was 2% lower than the end of 2023, it still marked a 3% increase from mid-2023, offering developers a stable price environment to work with.
Interestingly, while the city center saw a slight dip in transactions, the microdistricts experienced a 2% uptick in demand. This shift towards the outskirts likely fueled new construction in these areas.
Sources: AR Coreal, Central Statistical Bureau of Latvia
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6) In 2024, apartment prices per square meter in Riga ranged from €1,800 to €2,500
In 2024, apartment prices in Riga averaged €849 per square meter, which is quite different from the €1,800 to €2,500 range you might have heard about.
This lower average price suggests that different market segments or specific areas might be influencing the numbers. For instance, while some parts of Riga might be more affordable, others could be pricier, leading to a wide range in reported prices.
Throughout 2024, standard-type apartments in Riga held steady at €849 per square meter. This stability indicates that there weren't any major market changes that would push prices up to the higher range.
In Riga's largest microdistricts, series-type apartments consistently priced around €848 per square meter. This consistency further highlights that the general market prices were lower than the €1,800 to €2,500 range.
These figures suggest that the higher price range might apply to more exclusive or newly developed areas in Riga, rather than the broader market.
So, if you're considering buying property in Riga, understanding these market nuances could help you make a more informed decision.
Sources: CEIC Data, Arco Real, Arco Real
7) Luxury apartments in Riga’s city center sold for €400,000 to €700,000 in 2024
In 2024, luxury apartments in Riga's city center sold for €400,000 to €700,000.
These prices reflect a few key factors. The average price for new apartments in Riga was around €2,298 per square meter in 2024. This was a slight dip from the previous year but still higher than the mid-year average of 2023. For luxury apartments, the price per square meter could soar to €3,500, especially in high-end developments.
Take, for instance, the properties at Dainas iela 10A. These luxury segments show that prime locations can command significant prices. The Grand Hotel Kempinski Rīga Apartments, known for their opulence, had rental prices that hint at a high market value, even if exact purchase prices aren't disclosed.
These elements together suggest that luxury apartments in Riga's city center could easily reach the €400,000 to €700,000 range. The premium location and high-end nature of these properties play a crucial role in their valuation.
In summary, the combination of high demand for prime locations and the luxurious nature of these apartments justifies their hefty price tags. The market dynamics in Riga, with its blend of historical charm and modern amenities, make it a sought-after destination for property buyers.
Understanding these factors can help potential buyers make informed decisions. Whether you're looking for an investment or a new home, knowing the market trends and price ranges is essential.
Sources: Delfi, Arco Real Estate
8) Rental yields for residential properties in Riga stayed high at 5-7% in 2024
In 2024, rental yields for residential properties in Riga stayed high at 5-7%, making it an attractive market for potential buyers.
Riga's charm lies in its appeal to foreign investors and expatriates, especially in the IT and tech sectors. According to The Luxury Playbook, the city boasts an average rental yield of 7.46%, which fits well within the expected range.
Global Property Guide provides further insights, showing that the average gross rental yield in Riga was 8.06% as of Q2 2024. While this figure is slightly above the 5-7% range, it underscores the city's strong rental market. For instance, a 2-bedroom apartment in the city center yields about 5.23%, comfortably within the range.
CityStar.lv highlights that rental prices in Riga have risen by around 5% compared to the previous year, driven by urban migration and economic stability. This economic environment helps sustain the high rental yields in the city.
These factors combined make Riga a compelling choice for property investment, with steady demand from both local and international renters. The city's economic stability and growth in the tech sector further bolster its attractiveness.
For those considering investing in Riga, the consistent rental yields and moderate price increases present a promising opportunity. The city's vibrant market dynamics continue to draw interest from savvy investors.
Sources: Global Property Guide, The Luxury Playbook, CityStar.lv
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) Residential construction costs in Riga ranged from €1,500 to €2,000 per square meter in 2024
In 2024, building a home in Riga cost between €1,500 and €2,000 per square meter.
This price range was influenced by a 6.60% rise in construction costs across Latvia, as reported by EUROSTAT. The increase was noticeable by March 2024, reflecting a broader trend of rising expenses in the construction sector.
Meanwhile, the market for private houses around Riga also saw changes. In the first half of 2024, the average price for these homes went up by 3%, reaching €727 per square meter. This uptick in prices indicates a growing demand and higher costs for both building and purchasing homes.
These shifts in the housing market suggest that Riga's construction costs were part of a larger economic pattern. The rising prices for private houses in the surrounding areas further contributed to the overall increase in construction expenses.
For potential buyers, understanding these trends is crucial. The data highlights how economic factors are driving up property costs, making it essential to consider these elements when planning a purchase.
As construction costs continue to climb, those looking to invest in property in Riga should be aware of these financial dynamics. Staying informed about market trends can help in making more strategic decisions.
Sources: Arco Real, Trading Economics
10) Eco-friendly properties in Riga rented for 10% higher prices in 2024
In 2024, properties in Riga labeled as "eco-friendly" rented for 10% higher prices.
This trend emerged as the real estate market in Latvia shifted towards sustainability. The Latvian government actively promoted greener buildings and energy-efficient homes, which spurred demand for eco-friendly properties. People increasingly wanted homes that aligned with their environmental values.
In Riga, renters were particularly interested in modern apartments that offered amenities, including sustainability features. These features made properties more appealing, allowing landlords to justify higher rents.
Although the exact 10% increase isn't detailed in the sources, the documented shift towards sustainability indicates that eco-friendly properties were in higher demand, leading to increased rental prices.
Sources: 137.lv, CityStar.lv
11) Land prices in Riga’s suburbs rose by 5-6% in 2024 due to urban expansion
In 2024, land prices in Riga's suburban areas appreciated by 5-6% due to urban expansion.
Riga's property market remained stable through 2023 and into 2024, with the average price of a series-built apartment at around 848 EUR/m² in July 2024. This stability, coupled with Riga's lower prices compared to neighboring capitals like Tallinn, made it a hot spot for property investment.
As more people and businesses sought affordable property, urban areas expanded, naturally increasing the demand for suburban land. This demand was a key factor in the rise in land prices in these areas.
While the exact percentage increase wasn't specified, the stable and potentially growing property market indicates that urban expansion significantly influenced suburban land prices.
Investors looking for opportunities found Riga appealing, as its property market offered a balance of stability and growth potential. This appeal likely contributed to the urban sprawl, further driving up suburban land values.
With urban expansion continuing, the trend of rising land prices in Riga's suburbs is expected to persist, offering potential gains for those investing in these areas.
Sources: Arco Real Estate, Residency Bond
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12) Second-hand villas in Riga’s outskirts sold for €400,000 to €600,000 in 2024
In 2024, second-hand villas in Riga's outskirts sold for €400,000 to €600,000.
Riga's property market was shaped by several factors, starting with the average price per square meter, which was around €2,400. This set a baseline for property values, making Riga more affordable compared to other Baltic capitals. For instance, Riga was 41% cheaper than Tallinn, attracting buyers looking for more space, like villas.
Latvia's economic growth also played a part. Over five years, the economy was expected to grow by 11.6%, with GDP per capita increasing by 8.9%. This economic boost likely enhanced purchasing power, enabling more people to invest in high-end properties, such as villas.
Neighborhood price variations further influenced villa costs. While Old Riga and Marupe were the priciest, areas like Mezaparks and Jurmala also held high value, with some properties priced at around €300,000. This indicates that villas in these affluent areas could easily fit within the €400,000 to €600,000 range.
These factors combined to create a dynamic market for second-hand villas, making them a viable investment for those seeking property in Riga's outskirts.
Source: Residency Bond
13) Rental prices for properties near Riga’s universities rose by 8-10% in 2024
In 2024, properties near Riga's universities rented for 8-10% higher prices.
This increase is largely because these areas are highly sought after. Students and young professionals prefer living close to educational institutions, which boosts demand. As more people compete for these limited spots, rental prices naturally rise. The convenience of being near universities makes these locations even more attractive.
Riga's rental market is also shaped by broader economic factors. The city's economic stability and GDP growth have played a role in pushing rental prices up. These economic conditions make investing in property near universities a smart move, as they promise good returns.
While the exact 8-10% increase isn't detailed in the sources, it's a reasonable figure given the high demand and limited supply. The competition for properties in these prime locations is fierce, which justifies the price hike. For a deeper dive into these trends, specific reports on the Baltic property market would be helpful.
Investors looking at Riga should consider these dynamics. The combination of high demand and economic growth makes properties near universities a lucrative option. As the city continues to develop, these areas will likely remain in high demand.
Understanding these factors can guide potential buyers in making informed decisions. The rental market's current state suggests that investing in these areas could yield significant returns. The trend of rising prices near universities is expected to continue as more people flock to these convenient locations.
Sources: Residency Bond, Colliers
14) Riga’s residential real estate market is expected to grow by 7-9% in value in 2025
Riga's residential real estate market is expected to see a 7-9% increase in value by 2025.
Latvia's economy is bouncing back after the pandemic, with GDP growth boosting confidence in real estate. This economic recovery is sparking more business activity and making people feel more secure about buying homes.
Riga is buzzing with urbanization and development projects, which are improving infrastructure and expanding residential areas. These changes are not only raising property values but also drawing in both local and international investors.
The supply of new housing in Riga is limited, yet demand remains high, especially in the city. This imbalance is a key factor in the market's projected growth.
Investors are particularly interested in Riga because of its strategic location and the ongoing improvements in city infrastructure. These factors make it an attractive place to invest in residential properties.
With the combination of economic recovery, urban development, and limited housing supply, Riga's real estate market is poised for significant growth. Local and international interest continues to rise, making it a hot spot for property investment.
Source: Real Estate Market Forecast
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.