After several years of growth, the agricultural land market in Latvia has begun to cool down. Last year, both the number of transactions and the volume of land sold decreased, and in several regions, prices have started to fall.
The agricultural land market in Latvia is showing signs of slowing down after a prolonged period of growth. According to the State Land Service and Arco Real Estate, in 2025, the average transaction value for agricultural land was lower than the previous year.
The most noticeable price decrease was recorded in Latgale, where the average price per hectare decreased by 9%. In Vidzeme, prices fell by about 5%, and in Zemgale, by 2%. The only region where land prices remained virtually unchanged was Kurzeme.
Despite the decline, the most expensive agricultural lands are still located in Zemgale. The average price here was 6,389 euros per hectare, while in the Bauska and Jelgava regions, individual transactions were made at prices ranging from 13,000 to 16,000 euros per hectare. In Latgale, the average land price was more than twice as low — around 3,045 euros per hectare.
Not only prices have changed, but also market activity. In 2025, 8,793 hectares of agricultural land were sold in Latvia, which is 18% less compared to the previous year.
In terms of the volume of sold areas, this is one of the lowest figures in the last 13 years.
Additionally, there were fewer large transactions. The number of purchases priced above 10,000 euros per hectare decreased by 13%. More than half of all transactions were made in the range of 3,000 to 6,000 euros per hectare.
At the same time, expert assessments of the market partially differ. The company Latio notes that if only large agricultural plots over three hectares without buildings are analyzed, the average price in the country has still increased — from 5,367 to 5,615 euros per hectare. However, this growth was primarily driven by regions around Riga and Zemgale.
For potential buyers, this means that the market is becoming increasingly heterogeneous. In some regions, prices continue to rise, while in others, sellers have to accept lower offers.
According to experts, the main reason for the decline in activity is not a decrease in interest in land as such. The problem is that there are fewer quality and already developed agricultural lands on the market.
The most attractive plots are gradually transitioning to long-term owners, and there is less and less fertile land available for sale that can attract buyers at high prices.
Therefore, the market is gradually shifting from a period of rapid growth to a calmer phase, where the quality of the land and its location begin to play a key role.
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