The volume of the housing market in Latvia has hardly changed since 2021, amounting to approximately 1.5 billion euros at the end of last year, according to the latest real estate market review by 'Latio'.
Citing data from the Bank of Latvia, 'Latio' notes that the volume of deposits at the end of September 2025 was 26% higher than at the beginning of 2021, with a total amount reaching 12.6 billion euros.
According to the company, residents have nominally accumulated more funds than ever before, but are in no hurry to convert them into housing. This, in the opinion of 'Latio', is explained by a number of factors, including the desire to maintain liquid assets.
At the same time, in 2025, the housing market became more active — both the number of transactions and the volume of mortgage lending increased. 'Latio' predicts further growth in market activity, as a so-called 'deferred demand' has formed: residents have the financial means to purchase housing, but some potential buyers are currently waiting.
In the short term, such caution restrains activity, but in the long term, it may trigger a new wave of demand as soon as financial and geopolitical conditions become more favorable.
In September, the housing market in Riga was relatively active in terms of both supply and the number of transactions. A total of about 4,240 apartments were available for purchase and 3,050 apartments for rent.
In new projects on the primary market in Riga districts, the average transaction price was 2,760 euros per square meter, while in the center it was 3,430 euros per square meter. In renovated houses in the center, the average price was 2,690 euros per square meter. The offer included 1,890 apartments in new buildings, with an average listing price of 2,925 euros per square meter.
In the segment of series houses in the districts, the price was about 1,075 euros per square meter, while in the center it was 1,430 euros per square meter. About 1,480 apartments were for sale, and 1,090 were offered for rent.
Real estate market analyst 'Latio' Ksenia Ievleva explains that the growth in deposits is related to a combination of several factors — high inflation in recent years, the residual effect of money inflows during the pandemic, and an increase in the financial literacy of the population. As a result, household funds are increasingly being placed in deposits rather than in real estate.
'It reflects a more cautious behavior of capital — people prefer to maintain liquidity and a financial safety cushion rather than invest in 'brick and concrete', that is, assets with less predictable returns. In the short term, this trend is slowing down the market, but in the long term, it may create accumulated demand that will return to the market when the economic and geopolitical environment improves,' noted Ievleva.
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