The real estate market in Latvia has revived – not only the number of transactions and their amounts are increasing, but also the volume of issued mortgage loans.
According to forecasts, by 2040 more than a third, or 36%, of European households will consist of one person, and in Latvia this situation will be characteristic of almost half of households, as stated in a study by the international market analysis company Euromonitor International for 2024.
This may indicate an increase in demand for more compact housing, as well as a growing importance for buyers of criteria such as sustainability and energy efficiency.
Square Meters Have Increased in Price by 2.5 Times
For the economy of the European Union, 2025 was a year of rapid growth, and property prices continued to rise.
According to the latest data from Eurostat, over the past 15 years, housing prices in Latvia have increased almost 2.5 times, while in the European Union they have increased 1.5 times. Despite this, housing in Latvia is selling quickly: this summer, it took an average of 55 days to sell a property at market price, the lowest figure since autumn 2022.
July was the most active month in recent years in terms of new transactions, second only to December 2021, showing a 26% increase compared to 2024, as noted in the Riga housing market review. The main demand from buyers is focused on apartments in Riga and its suburbs, especially in new projects; however, the supply in this segment is limited, contributing to price increases.
What About Renting?
From 2010 to the second quarter of 2025, housing prices in the EU increased by 60.5%, while rental prices rose by 28.8%.
Regarding rentals, the highest growth rates are demonstrated by Estonia (+218%), Lithuania (+192%), Hungary (+125%), and Ireland (+117%). In Latvia, the increase in rental prices was about 70%. Greece is the only country in the EU where rents have decreased during this period - by 9%.
At the same time, Eurostat data shows that residents of Latvia are more likely to live in properties they own — only about 17% rent housing. This is lower than the EU average, where just over 30% of the population rented housing in 2023.
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