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
If you're thinking about investing in rental property in Riga, understanding the real numbers behind rental yields is essential before you make any decision.
This article breaks down everything from gross and net yields to neighborhood differences and the costs that eat into your returns.
We keep this blog post constantly updated so you always have the freshest data available on Riga's rental market.
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's average gross rental yield of around 7.8% in early 2026 is notably higher than most Western European capitals, mainly because entry prices remain relatively affordable in the city's large housing estates.
- The gap between gross and net yields in Riga typically runs 1.5 to 2 percentage points, with building management fees in older Soviet-era blocks being the biggest recurring cost that drags down net returns.
- Neighborhoods like Purvciems, Pļavnieki, and Imanta regularly deliver gross yields above 8.5%, while prestige areas like Vecrīga and Mežaparks often compress below 6% because buyers pay a lifestyle premium.
- Studios and one-bedroom apartments in Riga consistently outperform larger units on yield, since renters pay a premium for self-contained homes even when they're compact.
- Riga's typical vacancy rate sits around 5% for long-term rentals, but this drops to 2 to 4% in high-demand housing estates where standardized apartments rent quickly.
- Infrastructure projects like Rail Baltica's Riga Central Station and the New Hanza development in Skanste are expected to lift rents in nearby micro-areas by 5 to 15% once completed.
- Property taxes in Riga are based on cadastral value rather than market value, which often makes the annual tax bill surprisingly small compared to what investors from other countries expect.
- Full-service property management in Riga typically costs 7 to 10% of monthly rent, plus a tenant placement fee equivalent to 50 to 100% of one month's rent.
What are the rental yields in Riga as of 2026?
What's the average gross rental yield in Riga as of 2026?
As of early 2026, the average gross rental yield in Riga across all residential property types sits at approximately 7.8% per year, which reflects a blend of the dominant apartment market with smaller shares of houses and townhouses.
Most typical residential properties in Riga fall within a gross yield range of 7% to 9%, with some outliers reaching higher or lower depending on specific location and unit characteristics.
Compared to many Western European capitals where gross yields often hover around 3% to 5%, Riga offers significantly stronger rental returns largely because property prices remain more accessible while rental demand stays consistent.
The single most important factor shaping Riga's gross yields right now is the city's abundant stock of affordable Soviet-era apartments in housing estates, which keeps entry prices low relative to achievable rents.
What's the average net rental yield in Riga as of 2026?
As of early 2026, the average net rental yield in Riga across all residential property types is approximately 6.0% per year after accounting for typical owner-side costs and vacancy.
The difference between gross and net yields in Riga generally runs between 1.5 and 2.5 percentage points, which is fairly standard for markets with aging housing stock and meaningful recurring expenses.
In Riga specifically, the building management and maintenance fees charged by property managers like the municipal RNP tend to be the single largest recurring cost that reduces gross yield to net yield.
Most standard investment properties in Riga deliver net yields in the range of 4.5% to 7%, with the variation depending mainly on how old the building is and how much you budget for repairs in panel-block apartments.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Riga.
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 yield is considered "good" in Riga in 2026?
In early 2026, a gross rental yield of 8% or higher is generally considered "good" by investors in Riga, while a net yield of 6% or above is the threshold most landlords aim for.
Properties that achieve gross yields above 8.5% typically stand out as high performers in Riga, since the city-wide average hovers around 7.8% and anything meaningfully above that signals either a well-bought property or a high-demand micro-location.
How much do yields vary by neighborhood in Riga as of 2026?
As of early 2026, gross rental yields in Riga vary dramatically from roughly 5.5% in premium central areas to around 10% in some working-class housing estates, creating a spread of about 4.5 percentage points across the city.
The highest-yield neighborhoods in Riga are typically large housing estates with affordable entry prices and steady workforce rental demand, including areas like Purvciems, Pļavnieki, Imanta, Zolitūde, Ķengarags, and Jugla.
The lowest-yield neighborhoods tend to be prestige locations where buyers pay a lifestyle premium that compresses returns, such as Vecrīga (Old Town), the Quiet Centre, Mežaparks, and Ķīpsala.
The main reason yields vary so much across Riga neighborhoods is that purchase prices in trophy areas are driven by emotion and status rather than rental math, while housing estates are priced more strictly on cashflow fundamentals.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Riga.
How much do yields vary by property type in Riga as of 2026?
As of early 2026, gross rental yields in Riga range from roughly 5% for large single-family houses up to around 9% or more for well-located studios and one-bedroom apartments.
Studios and one-bedroom apartments currently deliver the highest average gross rental yields in Riga because they attract the deepest pool of renters and their prices scale efficiently relative to achievable rents.
Large single-family houses and premium townhouses deliver the lowest average gross yields in Riga because purchase prices rise faster than rents as properties get bigger, and maintenance costs are heavier per unit of rental income.
The key reason yields differ between property types in Riga is that smaller units benefit from a "whole home premium" where tenants pay relatively more per square meter, while larger properties suffer from thinner tenant pools and higher upkeep.
By the way, you might want to read the following:
What's the typical vacancy rate in Riga as of 2026?
As of early 2026, the typical residential vacancy rate in Riga sits at approximately 5% for long-term rentals across all property types, which translates to roughly 2.5 to 3 weeks of vacancy per year on average.
Vacancy rates vary considerably across Riga's neighborhoods, ranging from as low as 2 to 4% in popular housing estates like Purvciems and Pļavnieki up to 6 to 10% for luxury apartments and large houses targeting a narrower tenant pool.
The main factor driving vacancy rates in Riga is how standardized and affordable the rental product is, since common apartment types in housing estates fill quickly while premium or unusual properties take longer to match with tenants.
Riga's vacancy rate is broadly in line with other Baltic capitals and somewhat lower than many EU cities, reflecting steady demand from local workers and a rental market dominated by easily absorbed apartment stock.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Riga.
What's the rent-to-price ratio in Riga as of 2026?
As of early 2026, the average rent-to-price ratio in Riga is approximately 0.65% monthly (annual rent divided by purchase price equals about 7.8%), which means a property typically costs around 12.8 times its annual rent.
For buy-to-let investors in Riga, a rent-to-price ratio above 0.67% monthly (or a price-to-rent multiple below 12 times annual rent) is generally considered favorable, and this ratio is essentially the same metric as gross rental yield expressed differently.
Compared to many Western European cities where price-to-rent multiples often exceed 25 or even 30 times annual rent, Riga's ratio of around 13 times remains attractive for cashflow-focused investors looking for stronger immediate returns.
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 neighborhoods and micro-areas in Riga give the best yields as of 2026?
Where are the highest-yield areas in Riga as of 2026?
As of early 2026, the highest-yield neighborhoods in Riga are large housing estates including Purvciems, Pļavnieki, and Imanta, along with other workforce-oriented districts like Zolitūde, Ķengarags, and Jugla.
These top-performing areas in Riga typically deliver gross rental yields in the range of 8.5% to 10%, with Purvciems and Pļavnieki often at the higher end due to strong rental demand and relatively low purchase prices.
What these high-yield areas share is an abundance of standardized Soviet-era apartment blocks with affordable entry prices, steady demand from local workers and families, and a rental market where pricing is driven by cashflow math rather than prestige.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Riga.
Where are the lowest-yield areas in Riga as of 2026?
As of early 2026, the lowest-yield neighborhoods in Riga are the prestige locations of Vecrīga (Old Town), the Quiet Centre in central Riga, and the house-heavy premium area of Mežaparks.
These low-yield areas in Riga typically deliver gross rental yields in the range of 5.5% to 7%, which is still respectable by Western European standards but notably below Riga's city-wide average.
Yields are compressed in these Riga neighborhoods primarily because purchase prices are bid up by lifestyle buyers and status-seekers who pay premiums that rental income simply cannot justify on a pure cashflow basis.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Riga.
Which areas have the lowest vacancy in Riga as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Riga are Purvciems, Pļavnieki, and Imanta, along with well-priced central apartments in Centrs near offices and universities.
These low-vacancy areas in Riga typically see vacancy rates of just 2% to 4%, meaning properties rent quickly and turnover periods are short.
The main demand driver keeping vacancy low in these Riga neighborhoods is the combination of affordable rents, good public transport connections, and a standardized apartment product that matches what most renters are looking for.
The trade-off investors face when targeting these low-vacancy areas is that while occupancy is reliable, competition for good units is high and exceptional yields require buying at below-market prices or adding value through renovation.
Which areas have the most renter demand in Riga right now?
The neighborhoods currently experiencing the strongest renter demand in Riga are Centrs (including the Quiet Centre), the emerging Skanste district, and the well-connected housing estate of Teika.
Young professionals and office workers are driving most of the rental demand in these Riga areas, particularly in Centrs and Skanste where proximity to workplaces and modern amenities matters most.
In high-demand Riga neighborhoods like Centrs and Skanste, well-priced rental listings typically get filled within one to two weeks, while competitively priced apartments in Teika often rent within days of being listed.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Riga.
Which upcoming projects could boost rents and rental yields in Riga as of 2026?
As of early 2026, the three upcoming projects most likely to boost rents in Riga are the Rail Baltica Riga Central Station development, the New Hanza mixed-use project in Skanste, and ongoing riverfront redevelopment initiatives.
The neighborhoods most likely to benefit from these projects are Central Station's immediate surroundings, the Skanste and Hanza corridor for New Hanza, and areas along the Daugava riverfront that will gain improved amenities and connectivity.
Once these projects are completed, investors might realistically expect rent increases of 5% to 15% in directly affected micro-areas, though the gains will materialize gradually as infrastructure comes online and tenant perceptions shift.
You'll find our latest property market analysis about Riga here.
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What property type should I buy for renting in Riga as of 2026?
Between studios and larger units in Riga, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments are the better-performing unit type in Riga in terms of both rental yield and occupancy, consistently outperforming larger units on a percentage-return basis.
Studios in Riga typically achieve gross yields of 8% to 10% (around €400 to €500 per month rent, or roughly $420 to $530 USD), while larger two and three-bedroom units often yield 6.5% to 8% despite higher absolute rents.
The main factor explaining this performance gap is that Riga's renter pool is heavily weighted toward singles and couples who value affordability and central locations over extra space.
However, larger units can be the better investment in Riga when targeting expat families or premium renters in areas like Centrs or Mežaparks, where tenants stay longer and are willing to pay for space and quality.
What property types are in most demand in Riga as of 2026?
As of early 2026, the most in-demand property type in Riga is the one to two-bedroom apartment located near public transport, supermarkets, and schools in well-connected neighborhoods.
The top three property types ranked by current tenant demand in Riga are: first, renovated but affordably priced central apartments; second, standard apartments in popular housing estates like Purvciems and Pļavnieki; and third, new-build apartments in emerging modern districts like Skanste.
The primary trend driving this demand pattern in Riga is a young professional and small-family population that prioritizes convenience and value over luxury, creating strong absorption for practical mid-market housing.
Large single-family houses are currently underperforming in rental demand in Riga and will likely continue to do so, as the tenant pool for expensive detached homes remains thin and turnover can be lengthy.
What unit size has the best yield per m² in Riga as of 2026?
As of early 2026, the unit size delivering the best gross rental yield per square meter in Riga is the compact studio or small one-bedroom apartment in the range of 25 to 45 square meters.
These optimally sized units in Riga typically achieve gross rental yields of around 9% to 10%, with rents of approximately €10 to €14 per square meter per month (roughly $11 to $15 USD or €10 to €14 EUR).
Smaller units below 25 square meters can struggle with tenant appeal and regulatory limitations, while larger units above 60 square meters see yields per square meter drop because rents do not scale proportionally with size in Riga's market.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Riga.
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.
What costs cut my net yield in Riga as of 2026?
What are typical property taxes and recurring local fees in Riga as of 2026?
As of early 2026, the annual property tax for a typical rental apartment in Riga usually ranges from €50 to €200 (approximately $55 to $220 USD), since the tax is calculated on cadastral value rather than market value and rates commonly fall between 0.2% and 0.6%.
Other recurring local fees landlords in Riga must budget for include the building management fee (typically €20 to €60 per month or €240 to €720 annually, roughly $265 to $800 USD), which covers common area maintenance, building administration, and reserve fund contributions.
Together, property taxes and building management fees typically represent about 5% to 10% of gross rental income in Riga, though this varies based on building age and the level of services provided by the property manager.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Riga.
What insurance, maintenance, and annual repair costs should landlords budget in Riga right now?
Annual landlord insurance for a typical rental apartment in Riga costs approximately €80 to €250 (roughly $90 to $275 USD), with the range depending on coverage level, property value, and building age.
The recommended annual maintenance and repair budget for Riga rental properties is 0.5% to 1.0% of market value, which for a €60,000 apartment translates to €300 to €600 per year (approximately $330 to $660 USD).
The type of repair expense that most commonly catches landlords off guard in Riga is building-wide infrastructure work in older panel blocks, such as roof repairs, stairwell renovations, or heating system upgrades that are decided by the building manager or owners' association.
In total, landlords in Riga should realistically budget €500 to €1,000 per year (roughly $550 to $1,100 USD) for the combined cost of insurance, maintenance, and repairs on a typical rental apartment.
Which utilities do landlords typically pay, and what do they cost in Riga right now?
In Riga, tenants typically pay for electricity, heating, water, and internet directly, while landlords are often responsible for the building management fee and common area charges, though some contracts pass these costs to tenants as well.
When landlords do cover utilities (such as for all-inclusive rentals targeting expats), the estimated monthly cost runs €100 to €200 (approximately $110 to $220 USD) for a typical one to two-bedroom apartment, with heating being the largest variable during winter months.
What does full-service property management cost, including leasing, in Riga as of 2026?
As of early 2026, full-service property management in Riga typically costs 7% to 10% of monthly rent (plus VAT), which for a €500 per month apartment means €35 to €50 monthly (approximately $40 to $55 USD).
On top of ongoing management, the typical leasing or tenant-placement fee in Riga is 50% to 100% of one month's rent, charged as a one-time fee when a new tenant is found, which would be €250 to €500 (roughly $275 to $550 USD) for that same apartment.
What's a realistic vacancy buffer in Riga as of 2026?
As of early 2026, landlords in Riga should set aside approximately 5% of annual rental income as a vacancy buffer, which provides a reasonable cushion for turnover and the occasional gap between tenants.
This 5% buffer translates to roughly 2.5 to 3 weeks of vacancy per year, which is realistic for well-located apartments in Riga's mainstream rental market, though premium properties may need a 7% to 8% buffer due to longer re-letting times.
Buying real estate in Riga can be risky
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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 |
|---|---|---|
| Global Property Guide - Latvia rental yields | A long-running international real estate data publisher that transparently shows its yield formula and data inputs. | We used it to anchor Riga's gross yields by neighborhood and unit size. We then adjusted for houses and townhouses to arrive at a city-wide "all types mixed" figure. |
| ARCO Real Estate - Riga apartment market overview | A major Baltic brokerage and valuation firm producing primary market reports with clear, current figures. | We used it to ground Riga's mass-market apartment price level. We also used its named housing estates list to ensure our neighborhood examples are realistic. |
| Central Statistical Bureau of Latvia | Latvia's official statistics authority and the national source of record for economic and housing data. | We used it to cross-check the macro direction of housing prices and cost pressures. We also referenced it for household energy prices that affect landlord and tenant cost splits. |
| CSB - House Price Index | An official, frequently updated housing price index that allows for consistent time-series comparisons. | We used it to sanity-check whether early 2026 yield estimates should assume prices rising faster than rents or the opposite. It served as a macro cross-check for our estimates. |
| CSB - Electricity prices for household consumers | Official government price data for a core household utility that directly affects rental budgets. | We used it to frame a realistic utilities budget and to explain which utilities landlords typically should not include in rent unless offering all-inclusive arrangements. |
| Eurostat HICP - Actual rentals for housing (via FRED) | Eurostat data distributed by the Federal Reserve's research platform, providing reliable rent inflation metrics. | We used it to cross-check the rent trend direction so our estimates don't rely only on private listings-based data. It helped validate steady demand signals in Riga. |
| State Revenue Service (VID) - Immovable property tax | The government tax authority summarizing how property tax bases and rate-setting work in Latvia. | We used it to describe the property tax base (cadastral value) and typical residential rate bands. We then translated this into a net-yield cost you can budget for. |
| Global Property Guide - Latvia taxes and costs | A compilation of property tax and rental income tax rules in one accessible place that can be easily cross-checked. | We used it as a second-source check on rate ranges and common landlord cost items. We treated it as a triangulation layer rather than the definitive legal source. |
| Grant Thornton Latvia - Key tax rates 2025 | A major global tax and advisory firm providing a clear snapshot of current Latvian tax rates. | We used it to sanity-check the personal income tax treatment of property income and how that can affect net yield depending on your filing method. |
| Riga municipal housing manager (RNP) | The dominant municipal building manager in Riga, providing information close to the actual bills owners receive. | We used it to explain what the building management fee is and why it changes. This is one of the biggest recurring costs that reduces net yield in Riga. |
| LSM (Latvian Public Media) - Rail Baltica update | Latvia's public media outlet citing official project contracts and construction timelines. | We used it to support which infrastructure projects could lift rents in specific micro-areas, especially around Central Station. |
| New Hanza - Official project site | The primary source for this major development's milestones, location details, and project scope. | We used it to name concrete projects and micro-areas in the Skanste and Hanza corridor that can change rental demand and tenant mix. |
| Riga Waterfront - Development portal | The official source for riverfront redevelopment plans that could reshape parts of central Riga. | We used it to identify medium-term infrastructure projects that may lift perception and amenity value of adjacent areas as they progress. |
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