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
Riga is a compact capital where micro-location matters enormously, sometimes even street by street, and the real estate data is surprisingly good thanks to official statistics and consistent local market tracking.
Whether you want high rental yields, a safe long-term investment, or a vacation rental opportunity, understanding which Riga neighborhoods deliver on which goals is essential before you put any money down.
We constantly update this blog post with fresh data so you always have the most current picture of Riga's property 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.
What's the Current Real Estate Market Situation by Area in Riga?
Which areas in Riga have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Riga are Vecrīga (Old Town), Klusais centrs (Quiet Centre), and Skanste, where premium apartments and new developments command the highest prices per square meter in the city.
In these top-tier Riga neighborhoods, typical prices range from around 2,900 to 4,300 euros per square meter for new-build apartments, while exclusive renovated properties in Vecrīga and Klusais centrs can reach 5,000 to 7,000 euros per square meter.
Each of these expensive Riga areas commands high prices for different reasons:
- Vecrīga (Old Town): UNESCO World Heritage status and extreme scarcity of available properties
- Klusais centrs: embassy belt location, Art Nouveau architecture, and renovated pre-war building stock
- Skanste: modern business district with new-build developments offering contemporary amenities
- Ķīpsala: waterfront location with proximity to the city center and limited housing supply
- Mežaparks: prestigious low-density area with large apartments and houses near green spaces
Which areas in Riga have the most affordable property prices in 2026?
As of early 2026, the most affordable areas to buy property in Riga are Bolderāja at around 650 euros per square meter, Vecmīlgrāvis at roughly 695 euros per square meter, Ķengarags at about 815 euros per square meter, and Iļģuciems at approximately 835 euros per square meter.
In these budget-friendly Riga neighborhoods, you can typically find standard-type apartments priced between 600 and 900 euros per square meter, making them accessible entry points for investors seeking higher yields.
The main trade-off in these lower-priced Riga areas is that Bolderāja and Vecmīlgrāvis can have thinner resale liquidity and more variable tenant quality, while Ķengarags and Iļģuciems offer better transport links but older Soviet-era housing stock that may require renovation investment.
You can also read our latest analysis regarding housing prices in Riga.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Latvia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Which Areas in Riga Offer the Best Rental Yields?
Which neighborhoods in Riga have the highest gross rental yields in 2026?
As of early 2026, the Riga neighborhoods with the highest gross rental yields are Bolderāja (estimated 8 to 11 percent), Vecmīlgrāvis (around 7.5 to 10 percent), Ķengarags (roughly 7 to 9.5 percent), and Iļģuciems (approximately 7 to 9 percent).
Across Riga as a whole, typical gross rental yields range from about 4.5 percent in prime city center locations to 8 percent or more in outer residential districts, with the city-wide average sitting around 6 to 7 percent for standard apartments.
Here is why these high-yield Riga neighborhoods deliver stronger returns than other areas:
- Bolderāja: very low entry prices around 650 euros per square meter keep the yield math favorable
- Vecmīlgrāvis: affordable pricing combined with steady local working-class tenant demand
- Ķengarags: large housing stock with good public transport keeps rental demand consistent
- Iļģuciems: proximity to industrial areas sustains tenant interest at budget rent levels
- Purvciems: mid-range pricing with strong liquidity offers a balance of yield and safety
Finally, please note that we cover the rental yields in Riga here.
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Which Areas in Riga Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Riga perform best on Airbnb in 2026?
As of early 2026, the top-performing Riga neighborhoods on Airbnb are Vecrīga (Old Town), Centrs (city center), Klusais centrs (Quiet Centre), and Āgenskalns, where occupancy rates can reach 60 to 71 percent and average nightly rates range from 65 to 90 euros depending on property quality and season.
In these best-performing Riga vacation rental areas, top properties typically generate monthly revenues between 1,000 and 1,800 euros during peak summer months, with annual averages around 16,000 to 18,000 euros for well-managed one-bedroom apartments.
Here is the main factor driving short-term rental success in each of these Riga neighborhoods:
- Vecrīga (Old Town): walkability to major tourist attractions and UNESCO heritage status
- Centrs: central location appealing to both business travelers and leisure tourists year-round
- Klusais centrs: Art Nouveau architecture and quieter streets attract longer-staying guests
- Āgenskalns: charming neighborhood vibe with easy bridge access to the Old Town
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Riga.
Which tourist areas in Riga are becoming oversaturated with short-term rentals?
The three Riga areas most at risk of short-term rental oversaturation are Vecrīga (Old Town), the core of Centrs around the main pedestrian streets, and the immediate vicinity of the Central Market, where listing concentration is highest.
In these potentially oversaturated Riga zones, there are now over 3,700 active short-term rental listings city-wide, with the heaviest concentration in Vecrīga where dozens of properties compete for the same tourist foot traffic within a few square blocks.
The main indicator that these Riga areas have reached saturation risk is that new EU regulation 2024/1028 on short-term rental data sharing makes enforcement and registration requirements easier for cities to implement, meaning sudden compliance costs or restrictions could appear quickly.
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 Areas in Riga Are Best for Long-Term Rentals?
Which neighborhoods in Riga have the strongest demand for long-term tenants?
The Riga neighborhoods with the strongest long-term rental demand are Teika, Āgenskalns, Purvciems, Imanta, and the central areas of Centrs and Klusais centrs, where properties typically find tenants within two to four weeks of listing.
In these high-demand Riga rental areas, vacancy rates tend to stay low at around 3 to 5 percent annually, with well-maintained apartments in good locations rarely sitting empty for more than a month between tenants.
Here is the tenant profile that drives demand in each of these Riga neighborhoods:
- Teika: young professionals and families attracted by excellent schools and green spaces
- Āgenskalns: creative professionals and expats seeking a quieter lifestyle near the center
- Purvciems: budget-conscious local families valuing large Soviet-era apartments and transport links
- Imanta: working families drawn to affordable rents and proximity to shopping centers
- Centrs and Klusais centrs: international professionals and embassy staff preferring walkability
The key characteristic making these Riga neighborhoods attractive to long-term tenants is that Teika and Āgenskalns offer a quality-of-life premium with good amenities, while Purvciems and Imanta provide practical affordability with reliable public transport connections.
Finally, please note that we provide a very granular rental analysis in our property pack about Riga.
What are the average long-term monthly rents by neighborhood in Riga in 2026?
As of early 2026, average long-term monthly rents in Riga range from around 6 to 10 euros per square meter in outer districts like Bolderāja and Vecmīlgrāvis, up to 14 to 20 euros per square meter in premium areas like Vecrīga and Klusais centrs.
In the most affordable Riga neighborhoods such as Bolderāja, Vecmīlgrāvis, and Ķengarags, entry-level one-bedroom apartments typically rent for 250 to 400 euros per month, making them accessible to local working-class tenants.
In mid-range Riga neighborhoods like Purvciems, Imanta, Teika, and Ziepniekkalns, average one-bedroom apartments rent for approximately 400 to 550 euros per month, with two-bedroom units reaching 500 to 700 euros.
In premium Riga neighborhoods including Vecrīga, Klusais centrs, and Centrs, high-end one-bedroom apartments command 600 to 900 euros per month, while renovated two-bedroom units can reach 800 to 1,200 euros monthly.
You may want to check our latest analysis about the rents in Riga here.
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Which Are the Up-and-Coming Areas to Invest in Riga?
Which neighborhoods in Riga are gentrifying and attracting new investors in 2026?
As of early 2026, the Riga neighborhoods experiencing the strongest gentrification and investor interest are Skanste (modern redevelopment zone), Āgenskalns (quality-of-life upgrade story), parts of Centrs outside the absolute core where renovation projects cluster, and Jugla which showed notable price momentum in 2025.
These gentrifying Riga neighborhoods have experienced annual price appreciation of roughly 5 to 10 percent over the past year, with Jugla specifically highlighted as one of the strongest movers in 2025 market reports.
Which areas in Riga have major infrastructure projects planned that will boost prices?
The main Riga area with a major infrastructure project expected to boost property prices is the zone around the new Rail Baltica Central Station, which is currently under active construction and will transform accessibility in the surrounding neighborhoods.
The Rail Baltica project is the largest infrastructure investment in the Baltic region in 100 years, with the Riga Central Hub including a new station building, a major railway bridge over the Daugava river, and connections to Riga International Airport, with essential works scheduled for completion by late 2026 and full operations expected around 2030.
Historically in Riga and similar European cities, major transport infrastructure projects have generated price increases of 10 to 20 percent in immediately adjacent areas over the five years following completion, as improved accessibility attracts both residents and businesses.
You'll find our latest property market analysis about Riga here.
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.
Which Areas in Riga Should I Avoid as a Property Investor?
Which neighborhoods in Riga with lots of problems I should avoid and why?
The Riga neighborhoods that investors should approach with extra caution are Bolderāja, Vecmīlgrāvis, and Vecrīga (Old Town) if you are pursuing an Airbnb-only strategy, as each carries specific risks that can hurt your returns.
Here is the main problem affecting each of these Riga neighborhoods:
- Bolderāja: thinner resale liquidity, variable tenant quality, and older building stock requiring renovation
- Vecmīlgrāvis: similar resale challenges plus more limited amenities compared to central districts
- Vecrīga for STR-only: highest regulatory scrutiny risk and listing saturation pressuring occupancy rates
For these Riga neighborhoods to become more viable investment options, Bolderāja and Vecmīlgrāvis would need improved transport links and building renovations to boost tenant quality and resale appeal, while Vecrīga STR investors would need regulatory clarity and supply stabilization to reduce competition risk.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Riga.
Which areas in Riga have stagnant or declining property prices as of 2026?
As of early 2026, the Riga area showing the clearest price stagnation or decline is Bolderāja, which was specifically noted as the exception where average prices had decreased slightly over 2025 while other microdistricts saw modest increases.
In Bolderāja specifically, prices have remained essentially flat or declined by roughly 1 to 3 percent over the past year, while most other Riga microdistricts recorded increases in the 2 to 8 percent range during the same period.
Here is the underlying cause of price weakness in these areas of Riga:
- Bolderāja: peripheral location with weaker job access and limited new investment interest
- Vecmīlgrāvis: industrial legacy and distance from central employment zones suppress demand
- Parts of outer Ķengarags: aging Soviet housing stock without renovation competes poorly with upgraded options
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Which Areas in Riga Have the Best Long-Term Appreciation Potential?
Which areas in Riga have historically appreciated the most recently?
The Riga areas that have shown the strongest recent appreciation are Jugla (highlighted as a strong mover in 2025), Teika (consistently the highest-priced standard-type microdistrict), Āgenskalns (quality-of-life driven demand), and the prime segments of Centrs and Vecrīga which maintain long-term scarcity pricing power.
Here is the approximate appreciation these top-performing Riga areas have achieved:
- Jugla: roughly 10 to 14 percent price growth over the past 12 months
- Teika: steady 5 to 8 percent annual appreciation reflecting durable demand
- Āgenskalns: approximately 6 to 9 percent growth driven by lifestyle appeal
- Centrs and Vecrīga premium segments: 4 to 7 percent but with lower volatility and stronger exit liquidity
The main driver behind above-average appreciation in these Riga areas is the combination of limited quality supply, strong local and expat demand, and either infrastructure improvements (like transport links) or inherent scarcity (like UNESCO heritage status in Vecrīga).
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Riga.
Which neighborhoods in Riga are expected to see price growth in coming years?
The Riga neighborhoods expected to see the strongest price growth in coming years are the Rail Baltica Central Station adjacency zone, Skanste (project-led re-rating potential), Teika (durable demand fundamentals), and Āgenskalns (quality-of-life driven appreciation).
Here is the projected annual price growth for these high-potential Riga neighborhoods:
- Rail Baltica zone: 8 to 15 percent potential as infrastructure completes between 2026 and 2030
- Skanste: 6 to 10 percent as new-build supply attracts corporate tenants and buyers
- Teika: 5 to 8 percent steady compounding based on consistent demand
- Āgenskalns: 5 to 9 percent as the neighborhood continues its quality-of-life upgrade trajectory
The single most important catalyst expected to drive future price growth in these Riga neighborhoods is the completion of Rail Baltica infrastructure, which will dramatically improve connectivity to the European rail network and make surrounding areas more accessible and attractive to both residents and businesses.
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 Do Locals and Expats Really Think About Different Areas in Riga?
Which areas in Riga do local residents consider the most desirable to live?
The Riga areas that local residents consider most desirable are Teika, Āgenskalns, Mežaparks, and the residential parts of Centrs and Klusais centrs, where locals consistently pay premium prices reflecting genuine preference.
Here is the main quality that makes each of these areas desirable to Riga locals:
- Teika: excellent schools, green spaces, and a family-friendly atmosphere with good transport
- Āgenskalns: charming streets, local cafes, and a creative community vibe near the river
- Mežaparks: prestige address with large properties, forest access, and low-density living
- Centrs and Klusais centrs: walkability to cultural amenities, restaurants, and Art Nouveau architecture
The typical resident demographic in these locally-preferred Riga areas includes established Latvian families in Teika and Mežaparks, young professionals and creative types in Āgenskalns, and a mix of successful locals and international residents in Klusais centrs.
Local preferences in Riga generally align with what savvy foreign investors target, except that locals often prioritize school quality and neighborhood community over pure investment returns, while foreigners sometimes overweight tourist appeal.
Which neighborhoods in Riga have the best reputation among expat communities?
The Riga neighborhoods with the best reputation among expat communities are Klusais centrs (Quiet Centre), Centrs (city center), Vecrīga (Old Town), and Skanste, where international residents cluster for different lifestyle reasons.
Here is the main reason expats prefer these Riga neighborhoods over others:
- Klusais centrs: proximity to embassies, renovated apartments, and a sophisticated residential feel
- Centrs: walkability to international restaurants, cultural venues, and public transport hubs
- Vecrīga: historic charm and central location appealing to those who prioritize atmosphere
- Skanste: modern apartments with contemporary amenities attractive to corporate relocations
The typical expat profile in these popular Riga neighborhoods includes embassy staff and diplomats in Klusais centrs, corporate professionals and remote workers in Centrs and Skanste, and lifestyle-driven shorter-term residents in Vecrīga.
Which areas in Riga do locals say are overhyped by foreign buyers?
The three Riga areas that locals commonly say are overhyped by foreign buyers are Vecrīga (Old Town) for investment-only purchases, certain new-build marketing zones in Skanste, and the most tourist-oriented parts of Centrs around the main pedestrian streets.
Here is the main reason locals believe these Riga areas are overvalued or overhyped:
- Vecrīga for investment: Airbnb saturation and regulatory risk make the "guaranteed rental income" narrative risky
- Skanste new-builds: high service charges and price premiums can erase the rent advantage locals would calculate
- Tourist Centrs: foreign buyers overestimate tourist demand while underestimating low-season vacancy
What foreign buyers typically see in these Riga areas that locals do not value as highly is the "international cachet" and tourist foot traffic, while locals focus more on practical factors like year-round livability, service charges, and realistic rental income after expenses.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Riga.
Which areas in Riga are considered boring or undesirable by residents?
The Riga areas that residents commonly consider boring or less desirable are Bolderāja, Vecmīlgrāvis, and the more peripheral parts of Kengarags and Jugla, where lower prices reflect weaker lifestyle appeal rather than hidden opportunity.
Here is the main reason Riga residents find these areas boring or undesirable:
- Bolderāja: distant from the city center with limited cultural amenities and nightlife options
- Vecmīlgrāvis: industrial legacy, fewer cafes and restaurants, and longer commutes to central jobs
- Outer Ķengarags: monotonous Soviet-era housing blocks without the charm of renovated central districts
- Peripheral Jugla: improving but still lacks the established community feel of popular neighborhoods
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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 |
|---|---|---|
| Central Statistical Bureau of Latvia (CSB) | Latvia's official statistics agency publishing the national House Price Index. | We used it to anchor where the market cycle is going into early 2026. We also used it as a neutral baseline to validate private-sector commentary. |
| ARCO Real Estate | Long-running local analytics publisher with consistent monthly microdistrict methodology. | We used it for specific neighborhood price levels like Teika, Āgenskalns, and Bolderāja. We also used it to identify which microdistricts showed the strongest momentum heading into 2026. |
| Ober-Haus | Major Baltic brokerage with transparent annual market reports. | We used it for prime versus residential district price bands and the city-center yield benchmark. We also used it to triangulate segment-level pricing with microdistrict data. |
| State Land Service (VZD) | Official land and cadastre authority recording real transaction prices. | We used it as a reality check versus asking prices. We also used it to validate whether private reports look plausible at the city level. |
| Global Property Guide | Cross-country housing data publisher with stated yield methodology. | We used it as an external sanity check for what gross yields look like in Latvia and Riga. We also used it to keep yield estimates realistic. |
| AirDNA | Established global short-term rental analytics provider widely cited by investors. | We used it for city-level Airbnb performance including occupancy and average daily rates. We also used it to ground the vacation rental section with actual numbers. |
| Inside Airbnb | Independent dataset built from public Airbnb listing data for research. | We used it to identify where short-term rental listings cluster inside Riga. We also used it to assess saturation risk in specific neighborhoods. |
| Rail Baltica | Official project source for the largest Baltic rail infrastructure program. | We used it to identify infrastructure that can reprice nearby residential areas. We also used it to support up-and-coming area calls with a concrete catalyst. |
| EUR-Lex | Official EU law database for regulations and directives. | We used it to explain why STR enforcement can tighten quickly across EU cities including Riga. We also used it to flag regulatory risk for vacation rental strategies. |
| Bank of Latvia (Latvijas Banka) | Country's central bank and official source for macro and financial statistics. | We used it to frame mortgage and credit conditions affecting residential demand. We also used it to triangulate financing narratives against ECB data. |
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