Property Guide Latvia

Your personal adviser in the world of Latvian real estate.


Latvian property market

Latvian property market is considered to be a stable, reliable market with slow, yet consistent and predictable growth. Both international and domestic experts indicate vast residential real estate possibilities and accessible mortgage as the main selling points of the market. It is also worth mentioning that Latvia, being a part of the EU, is a gateway to Europe, which is further enhanced by the fact that it offers Temporary Residence Permits in exchange for real estate investments.

Real estate experts from all around the world indicate the following advantages of the Latvian market:

The following drawbacks are also indicated:

Local experts say that in the recent years the main driver of investment activities was the retail property sector, i.e. it was the area that attracted the most funding overall. The total number of investments is above EUR 3.5 million/year, and the majority of them were related to the biggest shopping centres of the country. In case you wish to conduct your own invistegation and analysis on the best region to invest into, please look into our section concerning property deals in various Latvian municipalities.

Residential estate in Latvia

Currently, the Latvian residential real estate market is in its growing phase. This partly due to the overall growth of economy, and party due to mortgage becoming a lot more accessible, especially for young parents, who, starting from 2015, can apply for a government-backed mortgage programme.

Prices for Latvian residential real estate can vary significantly, depending on the location. Naturally, Riga, the capital, is most expensive, while cities on the periphery are cheaper. This, however, does not mean that the outlying regions are worse - Latvia has a peculiar administrative geography, where all of the major cities (Daugavpils, Liepāja, Ventspils etc.) are located on the periphery of the country, making the whole division more balanced. Below, you will find a summary for some of the major cities and for the whole country on average.

Residential real estate rent rates in Latvia and selected cities (2019; average)
Latvia1 bedroom apartmentCity centre341 EUR
Outside the city centre249 EUR
3 bedroom apartmentCity centre597 EUR
Outside the city centre417 EUR
Riga1 bedroom apartmentCity centre382 EUR
Outside the city centre273 EUR
3 bedroom apartmentCity centre674 EUR
Outside the city centre458 EUR
Daugavpils1 bedroom apartmentCity centre115 EUR
Outside the city centre100 EUR
3 bedroom apartmentCity centre200 EUR
Outside the city centre166 EUR
Liepaja1 bedroom apartmentCity centre190 EUR
Outside the city centre140 EUR
3 bedroom apartmentCity centre324 EUR
Outside the city centre216 EUR
Valmiera1 bedroom apartmentCity centre200 EUR
Outside the city centre163 EUR
3 bedroom apartmentCity centre300 EUR
Outside the city centre225 EUR
Jelgava1 bedroom apartmentCity centre285 EUR
Outside the city centre190 EUR
3 bedroom apartmentCity centre350 EUR
Outside the city centre270 EUR
Residential real estate prices in Latvia and selected cities (2019; average per m2)
LatviaApartment in the city centre1 636 EUR
Apartment outside the city centre1 015 EUR
RigaApartment in the city centre1 804 EUR
Apartment outside the city centre1 109 EUR
DaugavpilsApartment in the city centre666 EUR
Apartment outside the city centre476 EUR
LiepajaApartment in the city centre1 000 EUR
Apartment outside the city centre550 EUR
ValmieraApartment in the city centre500 EUR
Apartment outside the city centre588 EUR

Immigration via real estate

As it was already mentioned, Latvian real estate plays an important role in attracting foreign residents into the country. In 2010 an immigration programme has been launched, and it allows foreign nationals to purchase real estate in Latvia and receive a temporary residence permit on this basis. Property purchased for this purpose must cost no less than 250 000 EUR with a cadastral value of no less than 80 000 EUR. This purchase can be divided into two properties, both costing 250 000 in total,with the cadastral value of each no less than 40 000 EUR.

Commercial property in Latvia

As of 2017, the commercial property market in Latvia is in its stable phase, both in terms of prices and vacancy. Prices for Latvian offices and retail estate are considered to be one of the lowest in the EU. At the same time, the presence of major international businesses indicates that these prices do not mean the lack of quality. On the contrary - good quality of Latvian commercial real estate and low prices are two major factors that draw international enterprises to this country. Here you can see the summary of the rent rates:

Commercial estate prices in Latvia (2017; average price per month per m2)
OfficesClass A14 EUR
Class B+10 EUR
Class B-7 EUR
Retail estateless than 75 m238 EUR
75 m2 to 150 m227 EUR
more than 150 m226 EUR

Industrial property in Latvia

The industrial property market in Latvia is now in its growing phase, with the total industrial area increasing each year. Moreover, this development is not only quantitative, but also qualitative - recent years saw the differentiation of industrial property rent rates in Riga (the capital) and Riga Region, effectively creating two new sub-markets.

Rent and vacancy rate

Rents for Latvian industrial real estate are generally stable, but there is a possibility of them decreasing somewhat. This is due to the shift to tailor-made and built-to-suit solutions in new industrial properties, which make it more appealing than older property (especially storage space), which is not so flexible. Accordingly, older warehouse owners, in order to remain competitive, may decrease their prices in the nearest future, if the trend continues developing. In general, however, rents for both Class A and Class B industrial estate have remained almost the same for the last three years. These rates are:

As for vacancy rates, the situation is different for different industrial estate segments. While the overall vacancy has increased by 6% in the last year, there is a notable shortage of spaces for smaller premises (1 000 m2 to 2 000 m2). Considering the number of new projects in planning, vacancy rates are projected to increase.