Latvia is the Baltic market where prices have barely moved in recent years, rents have held up and demographics are the main long-term worry. The Latvia real estate market 2026 suits buyers who value low entry prices in the euro area over fast growth. We summarise the indicators below; stock for sale is on the Latvia property page.
Prices have moved sideways
Between 2022 and 2023 survey prices barely changed: city-centre apartments averaged about $2,561 per m² (from $2,525) and outside-centre flats about $1,586 per m² (from $1,580). Compared with Lithuania next door, that is cheaper per square metre in the centre, and compared with Estonia it is typically lower again.
Affordability is better than in many Western markets. The price-to-income ratio was 9.4 in 2024, up from 8.1 in 2023, which indicates that prices outran wages slightly last year. Average monthly net salary was about $1,172 in 2023 (from $1,087 in 2022). If you want to see the practical range, check our apartments in Latvia and houses in Latvia pages, or filter by budget under $100k.
Rent and return
Gross rental yield in the city centre was 4.0% in 2024, down from 4.3%, with a price-to-rent ratio of 25.0 (23.1 in 2023). One-bedroom flats in the centre rented for about $494 a month in 2024 (about $526 in 2023) and about $335 outside the centre in 2023. Three-bedroom rents were around $922 (centre) and $608 (outside).
Those are workmanlike numbers: you are paid to wait, not to speculate. The rental pool is anchored by Riga's office jobs, students, and tenants who cannot meet bank criteria. Outside Riga and the coast near Jurmala, vacancy risk rises and rents fall quickly.
| Indicator | Value | Year |
|---|---|---|
| Gross rental yield, city centre | 4.0% | 2024 |
| Price-to-rent ratio | 25.0 | 2024 |
| Price-to-income ratio | 9.4 | 2024 |
| Price per m², city centre | $2,561 | 2023 |
| Home-ownership rate | 82.8% | 2024 |
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Economy, rates and costs
GDP grew 2.1% in 2025 after stagnating in 2024 (-0.04%), reaching about $48.6 billion, with GDP per capita near $26,312. Inflation rose to 3.7% in 2025 from 1.3%, unemployment was about 6.6%, and government debt was about 46% of GDP (2024).
The 20-year mortgage rate was 4.25% in 2023, up from 2.47% in 2022, while the policy rate was 3.65% in 2024. Non-resident borrowers should check financing in Latvia because banks often demand large deposits. VAT is 21% and the top personal income tax rate is 36% in our 2026 data, which is relevant when you compute net rental income. Ownership is high (about 83% of households own), so rental supply is naturally limited.
Demographics and risk
This is Latvia's structural problem. The population is about 1.85 million and fell about 1.0% in 2025, close to 2024's decline of 0.9%. Fewer people means fewer households in the long run, especially outside Riga.
- Shrinking demand. Regional towns face oversupply and weaker resale.
- Soviet-era building stock. Check renovation status, heating costs and management fees.
- Security perception. Latvia borders Russia and Belarus; NATO membership mitigates but does not eliminate sentiment risk.
- Residency rules. Property purchases no longer qualify for residence permits on the same terms as before, so check Latvia's buying process if residency matters.
- Tax changes. Property and income tax regimes shift often.
Latvia's apartment prices have gone sideways; the investor edge is in picking the few streets whose demand will not shrink.
Outlook
Expect modest nominal growth in Riga and a flat-to-weak picture elsewhere. Euro-area membership, moderate debt and a reasonable yield make Latvia a stable satellite holding; it is not a high-growth story. Compare it with neighbouring options in the analysis hub, and run the numbers with the mortgage calculator before you commit.
Last updated 8 October 2026