How's the real estate market doing in Riga? (2026)

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

How's the real estate market going in Riga in 2026?

What's the average days-on-market in Riga in 2026?

As of early 2026, the average days-on-market for a correctly priced residential property in Riga is approximately 60 days, which means most buyers should expect about two months from listing to closing.

The realistic range that covers most typical Riga listings spans from 45 to 90 days, with renovated apartments in desirable neighborhoods like Āgenskalns and the city center selling faster, while properties needing work or in less popular districts tend to sit longer.

This is an improvement from one to two years ago, when the average time to sell in Riga was closer to 78 days, so the market has picked up noticeably as mortgage rates have come down and buyer confidence has returned.

Are properties selling above or below asking in Riga in 2026?

As of early 2026, most residential properties in Riga sell at approximately 2% to 5% below the original asking price, which means buyers typically have some room to negotiate, though not dramatically.

We estimate that roughly 70% to 80% of Riga properties sell at or below asking price, while only about 10% to 15% of homes, usually renovated apartments in high-demand areas, actually close above asking, though this estimate carries moderate uncertainty because Latvia does not publish official sale-to-list ratios.

The property types most likely to see bidding wars and above-asking sales in Riga are move-in-ready, renovated apartments in walkable neighborhoods like the city center, Āgenskalns, and Teika, where supply is tighter and buyers compete for quality.

By the way, you will find much more detailed data in our property pack covering the real estate market in Riga.

What kinds of residential properties can I realistically buy in Riga?

What property types dominate in Riga right now?

In Riga in 2026, the estimated breakdown of residential properties available for sale is roughly 70% apartments (split between Soviet-era standard-type units and newer developments), about 20% single-family houses and townhouses in the suburbs, and around 10% land plots and other property types.

The single property type that represents the largest share of Riga's residential market is the standard-type apartment, often called "series apartments," which are found in the large housing estates built during the Soviet era in neighborhoods like Purvciems, Pļavnieki, and Imanta.

These standard-type apartments became so prevalent in Riga because of mass construction programs in the 1960s through 1980s that prioritized rapid, affordable housing to accommodate the growing population, and today they remain the most liquid and accessible segment for both buyers and renters.

If you want to know more, you should read our dedicated analyses:

• How much should you pay for an apartment in Riga?

Are new builds widely available in Riga right now?

New-build properties represent an estimated 20% to 25% of all residential listings currently available in Riga, making them a meaningful but not dominant share of the market, with Colliers reporting over 2,200 new apartments expected in 2025 and Latio recording more than 2,600 new-project transactions in the previous year.

As of early 2026, the Riga neighborhoods with the highest concentration of new-build developments include Skanste (a rapidly developing business and residential district near the center), parts of Āgenskalns and Torņakalns on the left bank, and emerging clusters in Teika and along the Mežaparks corridor, where developers are attracted by demand from young professionals and families.

Which neighborhoods are improving fastest in Riga in 2026?

Which areas in Riga are gentrifying in 2026?

As of early 2026, the Riga neighborhoods showing the clearest signs of gentrification are Āgenskalns on the left bank, Avoti near the city center, Grīziņkalns adjacent to Avoti, and parts of Skanste, all of which have seen an influx of younger residents, creative businesses, and property renovations over the past few years.

The visible changes indicating gentrification in these Riga areas include the reopening of the historic Āgenskalns Market, the expansion of craft breweries and specialty coffee shops along Avotu iela, the preservation efforts by Koka Rīga for wooden architecture, and the arrival of contemporary art spaces like Zuzeum in Avoti.

Over the past two to three years, these gentrifying Riga neighborhoods have seen estimated price appreciation of 10% to 20%, with Āgenskalns in particular standing out as a hotspot where values have risen 15% to 20% thanks to renovation support programs and strong buyer interest.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Riga.

Where are infrastructure projects boosting demand in Riga in 2026?

As of early 2026, the top Riga areas where major infrastructure projects are boosting housing demand include the zone around Riga Central Station (the Rail Baltica hub), the Southern Bridge corridor along Jāņa Čakstes gatve, and the Skanste district which benefits from improved tram connections to the city center.

The specific infrastructure projects driving that demand in Riga are the Rail Baltica high-speed rail connection with its new Riga Central Station multimodal hub, the fourth phase of the Southern Bridge which will improve traffic flow and freight bypass on the left bank, and the EU-supported tram line upgrades linking Skanste more directly to the rest of the city.

The estimated timelines for completion of these Riga projects are August 2026 for the main Rail Baltica station works (with finishing works through December 2026), autumn 2025 start for Southern Bridge Phase 4 construction with completion expected over the following years, and ongoing incremental improvements for the Skanste tram connections.

In Riga, the typical price impact on nearby properties is usually modest at announcement (around 3% to 5% premium) but can grow to 10% to 15% once major connectivity projects are completed and operational, as improved access makes neighborhoods more desirable for both residents and investors.

What do locals and insiders say the market feels like in Riga?

Do people think homes are overpriced in Riga in 2026?

As of early 2026, the general sentiment among Riga locals and market insiders is mixed, with many feeling that new-development prices have run ahead of what buyers are willing to pay, while well-located existing apartments are seen as fairly priced or even competitive given improving conditions.

The specific evidence locals typically cite when arguing homes are overpriced in Riga is the gap between asking prices and actual transaction prices in new developments, where Latio data shows new-project asking prices rising even as average transaction prices fell during parts of 2024 and 2025.

Those who believe Riga property prices are fair counter that the city remains one of the most affordable EU capitals, with average apartment prices around 865 euros per square meter compared to 1,500 to 3,000 euros in Tallinn and Vilnius, and that improving infrastructure justifies current valuations.

Riga's price-to-income ratio is moderate compared to regional averages, with property remaining accessible to households earning above Latvia's median income of around 1,200 to 1,500 euros monthly, though first-time buyers still face challenges saving for down payments in a market where mortgage loan-to-value ratios typically cap at 85% to 90%.

What are common buyer mistakes people regret in Riga right now?

The most frequently cited buyer mistake that people regret in Riga is not verifying ownership and encumbrances through Latvia's land register and cadastre before paying any deposit, which can lead to discovering mortgages, liens, or ownership disputes after money has already changed hands.

The second most common buyer mistake in Riga is underestimating building-level costs and risks in older Soviet-era or pre-war buildings, where buyers focus on their apartment unit but later face unexpected expenses for roof repairs, heating system replacements, or stairwell renovations imposed by the building association.

If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Riga.

It's because of these mistakes that we have decided to build our pack covering the property buying process in Riga.

How easy is it for foreigners to buy in Riga in 2026?

Do foreigners face extra challenges in Riga right now?

The overall difficulty level foreigners face when buying property in Riga is moderate, meaning EU and OECD citizens can purchase apartments without restrictions, but the practical process involves more documentation and compliance steps than local buyers typically encounter.

The specific legal restrictions in Latvia are minimal for apartments, though non-EU buyers cannot acquire agricultural or forest land, and any purchase involving a land parcel (such as a house with its plot) may require additional checks depending on the buyer's nationality and the land classification.

The practical challenges foreigners most commonly encounter in Riga include stringent bank account opening procedures with extensive source-of-funds documentation, the need for notarized and translated documents, and the reality that most real estate contracts and official communications are in Latvian, which requires either fluency or a trusted local representative.

We will tell you more in our blog article about foreigner property ownership in Riga.

Do banks lend to foreigners in Riga in 2026?

As of early 2026, mortgage financing is available to foreign buyers in Riga, but eligibility is significantly easier for EU/EEA residents with euro-denominated income, while non-EU applicants face stricter scrutiny and often need to bring larger down payments or purchase in cash.

The typical loan-to-value ratios foreign buyers can expect in Riga range from 60% to 70% (compared to up to 90% for locals), and interest rates for foreigners currently run around 4.5% to 5.5% annually, which is about 0.5 to 1 percentage point higher than rates offered to Latvian residents.

Banks in Latvia typically demand from foreign applicants comprehensive documentation including proof of income (employment contracts or business financials), tax returns from their home country, bank statements showing regular cash flow, source-of-funds documentation, and often a notarized power of attorney if the buyer cannot be present for all signing procedures.

You can also read our latest update about mortgage and interest rates in Latvia.

How risky is buying in Riga compared to other nearby markets?

Is Riga more volatile than nearby places in 2026?

As of early 2026, Riga's price volatility is estimated to be lower than Tallinn and comparable to Vilnius, with the Latvian capital historically showing more modest swings during both boom and bust periods than its Baltic neighbors, which have experienced sharper price spikes in recent years.

Over the past decade, Riga experienced a significant correction during the 2008 to 2010 crisis (prices dropped roughly 50% to 70% from peak) and a slower, steadier recovery since then, while Tallinn and Vilnius saw faster post-crisis rebounds and more pronounced recent price increases of 10% to 15% annually in some years.

If you want to go into more details, we also have a blog article detailing the updated housing prices in Riga.

Is Riga resilient during downturns historically?

Riga's historical resilience during downturns is mixed, with the city experiencing severe price drops during the 2008 to 2010 global financial crisis but showing more moderate declines and faster stabilization during the recent 2022 to 2024 slowdown caused by high interest rates and inflation.

During the most recent major downturn (the 2022 to 2024 period of elevated rates), Riga apartment prices declined by approximately 5% to 10% from their 2022 peak before stabilizing in late 2024 and early 2025, with recovery now underway as mortgage rates have fallen from nearly 6% to around 4.5%.

The property types that have historically held value best during downturns in Riga are standard-type apartments in well-connected microdistricts like Purvciems, Teika, and Āgenskalns, because they have the largest buyer pool, are easiest to rent out, and offer the most liquidity when sellers need to exit.

How strong is rental demand behind the scenes in Riga in 2026?

Is long-term rental demand growing in Riga in 2026?

As of early 2026, long-term rental demand in Riga is showing steady growth, supported by improving employment conditions, young professionals preferring flexibility over ownership, and some would-be buyers remaining in the rental market while waiting for better mortgage terms.

The tenant demographics driving long-term rental demand in Riga include young professionals in their 20s and 30s working in IT and services, international students attending Riga's universities, expats employed by multinational companies, and families who relocated from other Latvian cities for work opportunities.

The Riga neighborhoods with the strongest long-term rental demand right now are the city center and Centrs district (for professionals wanting walkability), Āgenskalns and Teika (for families seeking good schools and green space), and areas near universities like Avoti and parts of Purvciems (for student rentals).

You might want to check our latest analysis about rental yields in Riga.

Is short-term rental demand growing in Riga in 2026?

Riga currently has relatively light short-term rental regulations compared to many European cities, with no strict licensing requirements or night caps in place as of early 2026, though hosts are expected to register their rental income and comply with standard tax and safety obligations.

As of early 2026, short-term rental demand in Riga is growing moderately, supported by increasing tourist arrivals, with official data showing hotel occupancy around 62% in mid-2025 and overall visitor numbers trending upward as the Baltic region attracts more European travelers.

The current estimated average occupancy rate for short-term rentals in Riga is approximately 65% to 71% annually, with strong seasonal peaks in summer (July and August) and during the Christmas market season, and lower occupancy during winter months like January and February.

The guest demographics driving short-term rental demand in Riga include cultural tourists interested in the UNESCO-listed Old Town and Art Nouveau architecture, European weekend visitors taking advantage of budget airline connections, and a growing number of remote workers and digital nomads attracted by Riga's affordability and quality of life.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Riga.

What are the realistic short-term and long-term projections for Riga in 2026?

What's the 12-month outlook for demand in Riga in 2026?

As of early 2026, the 12-month demand outlook for residential property in Riga is cautiously positive, with most analysts expecting continued recovery as mortgage rates stabilize around 4% to 4.5% and buyer confidence improves after the sluggish 2023 to 2024 period.

The key economic and political factors most likely to influence Riga property demand over the next 12 months include European Central Bank interest rate decisions, Latvia's GDP growth trajectory (currently projected at 1% to 2% for 2026), and government spending priorities including increased defense budgets that may limit housing-related fiscal support.

The forecasted price movement for Riga over the next 12 months is an increase of approximately 3% to 7%, with stronger performance expected in renovated existing apartments and well-connected neighborhoods, while new developments may see more modest gains due to ongoing price negotiations between developers and buyers.

By the way, we also have an update regarding price forecasts in Latvia.

What's the 3 to 5 year outlook for housing in Riga in 2026?

As of early 2026, the 3 to 5 year outlook for housing prices and demand in Riga is moderately positive, with analysts expecting cumulative appreciation of 15% to 30% through 2030, driven by infrastructure improvements, continued EU integration benefits, and Latvia's convergence with higher-priced Western European markets.

The major development projects expected to shape Riga over the next 3 to 5 years include the completion of the Rail Baltica high-speed rail connection linking Riga to Tallinn, Warsaw, and beyond, continued urban renewal in districts like Skanste and Āgenskalns, and potential new residential developments along improved transport corridors.

The single biggest uncertainty that could alter Riga's 3 to 5 year outlook is geopolitical risk related to regional security concerns, which could affect foreign investment flows, migration patterns, and overall confidence in the Baltic property market.

Are demographics or other trends pushing prices up in Riga in 2026?

As of early 2026, demographic trends have a mixed impact on Riga housing prices, with Latvia's overall population declining but Riga maintaining relative stability as younger workers and families migrate from smaller towns to the capital for employment opportunities.

The specific demographic shifts affecting Riga prices include internal migration from rural Latvia to Riga (adding demand), an aging population that frees up some housing stock, and modest international immigration of students and skilled workers that supports rental and purchase demand in central neighborhoods.

The non-demographic trends pushing Riga prices include the preference for move-in-ready, energy-efficient apartments (driving premiums for renovated stock), remote work enabling some Riga residents to live in previously less desirable but affordable districts, and sustained interest from Baltic diaspora investors returning capital to Latvia.

These demographic and trend-driven price pressures in Riga are expected to continue for at least the next 5 to 10 years, as infrastructure improvements make the city more attractive, quality housing stock remains scarce, and Latvia's EU membership supports economic stability.

What scenario would cause a downturn in Riga in 2026?

As of early 2026, the most likely scenario that could trigger a housing downturn in Riga would be a sharp reversal in lending conditions, such as the ECB unexpectedly raising rates again or Latvian banks tightening credit standards in response to economic stress or regulatory pressure.

The early warning signs that would indicate a downturn is beginning in Riga include a sharp increase in days-on-market (rising above 90 to 100 days), growing inventories of unsold new-development units, declining transaction volumes reported by major brokerages like Latio and ARCO, and renewed pessimism in the Latio Home Buyer Confidence Index.

Based on historical patterns, a potential Riga downturn could realistically see prices decline 10% to 20% over 12 to 24 months in a moderate stress scenario, though the market has shown it can stabilize relatively quickly once the trigger (such as high rates) reverses, as seen in the 2024 to 2025 recovery.

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.