In the first half of this year, approximately 12,450 transactions involving apartments and private houses were registered in the Latvian housing market. This is 5% less compared to the same period last year. Although the number of transactions has decreased, prices continue to rise. The total transaction value reached 775.8 million euros, while the median amount of all transactions over the year grew by 5%, reaching 38,350 euros, according to Latio's housing market review for the first half of 2026.

"There are fewer transactions in the housing market, but prices continue to grow. The desire to live better clashes with a shortage of quality housing that fits buyers' budgets. This is neither a buyers' nor a sellers' market. This is a reality market – quality at an adequate price," states Edgars Šīns, Chairman of the Board at Latio.

Prices Are Growing, But Buyers Are Becoming More Cautious

In the first quarter of 2026, housing prices in Latvia were 10.9% higher than a year earlier. Meanwhile, consumer prices grew by 3.4% during this period. Buyers feel this price increase on a daily basis. Choosing between an affordable budget, a good location, and a quality property often means compromising in favor of only two of these criteria. Therefore, heating, management, and potential renovation costs are evaluated even more thoroughly before making a decision.

Interest in More Expensive Segments Decreases in Riga

In Riga, the number of transactions decreased by 6% in the first half of the year. The largest decline affected the primary market of new developments, where 15% fewer transactions were concluded compared to last year, as well as in the Center, Skanste, Mežaparks, and Ķīpsala, where the transaction count dropped by 12%. This year's results show that buyers have become more price-sensitive and have partially shifted toward cheaper alternatives.

The number of transactions involving unrenovated pre-war building apartments grew by 9%, and on the left bank of the Daugava River by 3%. In the secondary market of new developments, activity remained nearly at the previous level.

Standard-series apartment buildings still account for about half of all transactions in Riga, new developments and renovated buildings make up about a quarter, and pre-war era projects account for approximately 15%.

In Riga's standard-series apartment market on the left bank, the highest price is in Āgenskalns, where the average price per square meter is €1,380, Pļavnieki at €1,350, Šampēteris at €1,320, Zolitūde at €1,240, and Zasulauks at €1,220 per square meter. Meanwhile, on the right bank of the Daugava, the most expensive standard-series apartments are in Teika, where the average price is €1,280 per square meter, and Čiekurkalns, reaching €1,260. In Purvciems and Dārzciems it is €1,180, and in Pļavnieki €1,170 per square meter.

Listing Prices for New Developments Exceed Transaction Prices

In the second quarter of 2026, the average listing price in the primary market of new developments reached €3,220 per square meter. In actual transactions, the average price was approximately €2,780 per square meter.

In the first half of the year, most primary market new development transactions occurred in "Pīlādžu mājas", "Deglava Gleznotāju rezidence", "Kaivas kvartāls", "Parka kvartāls", and "Ezerjugla". The average price in these transactions ranged from €2,380 to €2,650 per square meter.

Private Houses Ranging 70–220 m² Are in Demand Near Riga

In active Pierīga – Ādaži, Ķekava, Mārupe, Ropaži, and Salaspils municipalities, as well as the state city of Jūrmala – buyers most frequently look for private houses with an area of 70 to 220 square meters. Demand varies depending on the house area and construction year.

For houses up to 100 square meters built after the year 2000, the average price is approximately €145,000. For a 100–150 square meter house, buyers pay an average of around €230,000, while the price for a 150–200 square meter house reaches approximately €260,000. For a private house of 200–250 square meters, buyers pay an average of around €335,000.

Demand Remains in the Regions, But Quality Properties Are Lacking

Zemgale

"Properties whose price matches the market situation find a buyer sooner or later," notes Inese Štorha, Latio Real Estate Transaction Manager in Zemgale. In the first half of this year, transactions took place across all key segments in Zemgale, but accurate property pricing was decisive. In cases where housing was significantly overpriced, sellers' price expectations differed from the market reality by up to approximately 40%.

The total transaction value reached €40 million, with around 1,250 transactions registered, which is 10% less than last year. New or well-renovated private houses up to approximately 130 m² were most frequently sought, alongside three-or-more-room apartments in good technical condition. Demand is particularly pronounced for small-sized first-floor apartments, which are purchased by seniors and their relatives, as well as investors for short-term rental.

Several new apartment projects are being prepared in Jelgava. Construction has already begun on two projects, with early reservations underway. Interest has also grown in commercial properties: entrepreneurs are looking for premises to lease, purchasing commercial land, and investing in building construction for their own needs.

Vidzeme

In Vidzeme, total transaction value reached €54.1 million in the first half of the year, but the number of transactions decreased by 6% to approximately 1,400. Prices generally grew by 5–6%, and this increase was accepted in Valmiera and Cēsis. The highest demand is for three- and four-room apartments, quality renovated housing, and private houses around 100–120 m² in area.

"Buyers are increasingly evaluating access to daily infrastructure, job opportunities, and commuting convenience, leading to the formation of new residential areas outside city administrative boundaries," says Daiga Blumberga, Latio Real Estate Transaction Manager in Vidzeme.

Demand is concentrated in Valmiera, Cēsis, and other larger cities in the region, as well as their surroundings. Interest in housing in Vidzeme also comes from people who want to return to the region after living in Riga or abroad. Conversely, finding a buyer for large private houses over 250 m² built in the 1990s with outdated finishes is significantly harder.

Kurzeme

In the Kurzeme market during the first half of the year, demand has outpaced appropriate supply. The total transaction value over the year grew by 11%, reaching €59.4 million, while the number of transactions decreased by 6% to around 1,660.

After failing to find a suitable private house for a long time, several people have decided to build houses themselves. Families continue to search for spacious housing, but decisions are increasingly influenced by the heating system and overall maintenance costs. Regional price levels remain stable overall, though in individual cases transactions are hindered by a lack of savings for a down payment.

"Buyers often try to find land plots at a more favorable price before they appear in public listings, including by contacting local municipalities," indicates Sanda Austere, Latio Real Estate Transaction Manager in Kurzeme. Interest is growing in properties that can be used for tourism, rental, or commercial activities. Around Ventspils, properties suitable for tourism development or conversion for commercial needs are entering the market.

Latgale

In Latgale, approximately 1,430 transactions were registered in the first half of the year, which is 2% more than last year. The total transaction value increased by 8%, reaching €22.9 million, while the median transaction value grew by 15% over the year.

Greater interest is seen in three-room and larger apartments, where the supply is about half that of one- or two-room apartments. High-quality renovated and well-maintained housing is in particularly high demand. The number of transactions for apartments priced at least €700 per m² grew by nearly 40% over the year.

"In Latgale, properties with a correctly determined market value were successfully sold during this half-year as well," states Natālija Makuševa, Latio Real Estate Transaction Manager in the Latgale region. Meanwhile, the decline in private house market activity is linked more to the structure and quality of supply than to a drop in interest.

Property Quality Becomes Increasingly Important

The first half of 2026 shows that buyers evaluate property not only by price and size – technical condition, maintenance costs, energy efficiency, and location matter as well.

Smaller, well-maintained, and functional houses attract buyer attention more easily than large private houses with high maintenance costs and outdated layouts. In the apartment market, preference is similarly given to properties where one can live without needing immediate capital investments.

Therefore, owners wishing to sell a home need to prepare it for the market and set a price matching the property's actual quality. Buyer interest remains, but purchase decisions are made more carefully and after a more detailed evaluation of costs.

New Law Will Allow Building Rental Houses on Public Land

On March 6, 2026, the Residential Rental Building Development Rights Law came into force, allowing multi-apartment rental houses to be built on state- or municipality-owned land. The new regulation aims to increase the availability of quality, energy-efficient rental housing, especially in regional areas.

Municipalities and developers will be able to agree on renting apartments to people who need assistance resolving housing needs. Upon expiration of the development right term, which cannot exceed 70 years, the built rental house will transfer to municipal ownership without compensation. The objective of the law is to ensure rent rates below average market levels.

Developers should note that failing to hand over a building within the set timeframe can lead to termination of the development right or forced auction of the property. During the development right period, the building may not be divided into apartment properties or alienated in parts.

In the first half of this year, approximately 12,450 transactions involving apartments and private houses were registered in the Latvian housing market. This is 5% less compared to the same period last year. Although the number of transactions has decreased, prices continue to rise. The total transaction value reached 775.8 million euros, while the median amount of all transactions over the year grew by 5%, reaching 38,350 euros, according to Latio's housing market review for the first half of 2026.

"There are fewer transactions in the housing market, but prices continue to grow. The desire to live better clashes with a shortage of quality housing that fits buyers' budgets. This is neither a buyers' nor a sellers' market. This is a reality market – quality at an adequate price," states Edgars Šīns, Chairman of the Board at Latio. 

We invite you to read the housing market report for the first half of 2026 here.

Additional Information:
Dr. oec. Ksenija Ijevleva
Latio | Market Analyst
E-mail: ksenija.ijevleva@latio.lv
Mob. +371 26814932
www.latio.lv

In the first half of this year, approximately 12,450 transactions involving apartments and private houses were registered in the Latvian housing market. This is 5% less compared to the same period last year. Although the number of transactions has decreased, prices continue to rise. The total transaction value reached 775.8 million euros, while the median amount of all transactions over the year grew by 5%, reaching 38,350 euros, according to Latio's housing market review for the first half of 2026.

"There are fewer transactions in the housing market, but prices continue to grow. The desire to live better clashes with a shortage of quality housing that fits buyers' budgets. This is neither a buyers' nor a sellers' market. This is a reality market – quality at an adequate price," states Edgars Šīns, Chairman of the Board at Latio.

Prices Are Growing, But Buyers Are Becoming More Cautious

In the first quarter of 2026, housing prices in Latvia were 10.9% higher than a year earlier. Meanwhile, consumer prices grew by 3.4% during this period. Buyers feel this price increase on a daily basis. Choosing between an affordable budget, a good location, and a quality property often means compromising in favor of only two of these criteria. Therefore, heating, management, and potential renovation costs are evaluated even more thoroughly before making a decision.

Interest in More Expensive Segments Decreases in Riga

In Riga, the number of transactions decreased by 6% in the first half of the year. The largest decline affected the primary market of new developments, where 15% fewer transactions were concluded compared to last year, as well as in the Center, Skanste, Mežaparks, and Ķīpsala, where the transaction count dropped by 12%. This year's results show that buyers have become more price-sensitive and have partially shifted toward cheaper alternatives.

The number of transactions involving unrenovated pre-war building apartments grew by 9%, and on the left bank of the Daugava River by 3%. In the secondary market of new developments, activity remained nearly at the previous level.

Standard-series apartment buildings still account for about half of all transactions in Riga, new developments and renovated buildings make up about a quarter, and pre-war era projects account for approximately 15%.

In Riga's standard-series apartment market on the left bank, the highest price is in Āgenskalns, where the average price per square meter is €1,380, Pļavnieki at €1,350, Šampēteris at €1,320, Zolitūde at €1,240, and Zasulauks at €1,220 per square meter. Meanwhile, on the right bank of the Daugava, the most expensive standard-series apartments are in Teika, where the average price is €1,280 per square meter, and Čiekurkalns, reaching €1,260. In Purvciems and Dārzciems it is €1,180, and in Pļavnieki €1,170 per square meter.

Listing Prices for New Developments Exceed Transaction Prices

In the second quarter of 2026, the average listing price in the primary market of new developments reached €3,220 per square meter. In actual transactions, the average price was approximately €2,780 per square meter.

In the first half of the year, most primary market new development transactions occurred in "Pīlādžu mājas", "Deglava Gleznotāju rezidence", "Kaivas kvartāls", "Parka kvartāls", and "Ezerjugla". The average price in these transactions ranged from €2,380 to €2,650 per square meter.
 

Private Houses Ranging 70–220 m² Are in Demand Near Riga

In active Pierīga – Ādaži, Ķekava, Mārupe, Ropaži, and Salaspils municipalities, as well as the state city of Jūrmala – buyers most frequently look for private houses with an area of 70 to 220 square meters. Demand varies depending on the house area and construction year.

For houses up to 100 square meters built after the year 2000, the average price is approximately €145,000. For a 100–150 square meter house, buyers pay an average of around €230,000, while the price for a 150–200 square meter house reaches approximately €260,000. For a private house of 200–250 square meters, buyers pay an average of around €335,000.

Demand Remains in the Regions, But Quality Properties Are Lacking

Zemgale

"Properties whose price matches the market situation find a buyer sooner or later," notes Inese Štorha, Latio Real Estate Transaction Manager in Zemgale. In the first half of this year, transactions took place across all key segments in Zemgale, but accurate property pricing was decisive. In cases where housing was significantly overpriced, sellers' price expectations differed from the market reality by up to approximately 40%.

The total transaction value reached €40 million, with around 1,250 transactions registered, which is 10% less than last year. New or well-renovated private houses up to approximately 130 m² were most frequently sought, alongside three-or-more-room apartments in good technical condition. Demand is particularly pronounced for small-sized first-floor apartments, which are purchased by seniors and their relatives, as well as investors for short-term rental.

Several new apartment projects are being prepared in Jelgava. Construction has already begun on two projects, with early reservations underway. Interest has also grown in commercial properties: entrepreneurs are looking for premises to lease, purchasing commercial land, and investing in building construction for their own needs.

Vidzeme

In Vidzeme, total transaction value reached €54.1 million in the first half of the year, but the number of transactions decreased by 6% to approximately 1,400. Prices generally grew by 5–6%, and this increase was accepted in Valmiera and Cēsis. The highest demand is for three- and four-room apartments, quality renovated housing, and private houses around 100–120 m² in area.

"Buyers are increasingly evaluating access to daily infrastructure, job opportunities, and commuting convenience, leading to the formation of new residential areas outside city administrative boundaries," says Daiga Blumberga, Latio Real Estate Transaction Manager in Vidzeme.

Demand is concentrated in Valmiera, Cēsis, and other larger cities in the region, as well as their surroundings. Interest in housing in Vidzeme also comes from people who want to return to the region after living in Riga or abroad. Conversely, finding a buyer for large private houses over 250 m² built in the 1990s with outdated finishes is significantly harder.

Kurzeme

In the Kurzeme market during the first half of the year, demand has outpaced appropriate supply. The total transaction value over the year grew by 11%, reaching €59.4 million, while the number of transactions decreased by 6% to around 1,660.

After failing to find a suitable private house for a long time, several people have decided to build houses themselves. Families continue to search for spacious housing, but decisions are increasingly influenced by the heating system and overall maintenance costs. Regional price levels remain stable overall, though in individual cases transactions are hindered by a lack of savings for a down payment.

"Buyers often try to find land plots at a more favorable price before they appear in public listings, including by contacting local municipalities," indicates Sanda Austere, Latio Real Estate Transaction Manager in Kurzeme. Interest is growing in properties that can be used for tourism, rental, or commercial activities. Around Ventspils, properties suitable for tourism development or conversion for commercial needs are entering the market.

Latgale

In Latgale, approximately 1,430 transactions were registered in the first half of the year, which is 2% more than last year. The total transaction value increased by 8%, reaching €22.9 million, while the median transaction value grew by 15% over the year.

Greater interest is seen in three-room and larger apartments, where the supply is about half that of one- or two-room apartments. High-quality renovated and well-maintained housing is in particularly high demand. The number of transactions for apartments priced at least €700 per m² grew by nearly 40% over the year.

"In Latgale, properties with a correctly determined market value were successfully sold during this half-year as well," states Natālija Makuševa, Latio Real Estate Transaction Manager in the Latgale region. Meanwhile, the decline in private house market activity is linked more to the structure and quality of supply than to a drop in interest.

Property Quality Becomes Increasingly Important

The first half of 2026 shows that buyers evaluate property not only by price and size – technical condition, maintenance costs, energy efficiency, and location matter as well.

Smaller, well-maintained, and functional houses attract buyer attention more easily than large private houses with high maintenance costs and outdated layouts. In the apartment market, preference is similarly given to properties where one can live without needing immediate capital investments.

Therefore, owners wishing to sell a home need to prepare it for the market and set a price matching the property's actual quality. Buyer interest remains, but purchase decisions are made more carefully and after a more detailed evaluation of costs.

New Law Will Allow Building Rental Houses on Public Land

On March 6, 2026, the Residential Rental Building Development Rights Law came into force, allowing multi-apartment rental houses to be built on state- or municipality-owned land. The new regulation aims to increase the availability of quality, energy-efficient rental housing, especially in regional areas.

Municipalities and developers will be able to agree on renting apartments to people who need assistance resolving housing needs. Upon expiration of the development right term, which cannot exceed 70 years, the built rental house will transfer to municipal ownership without compensation. The objective of the law is to ensure rent rates below average market levels.

Developers should note that failing to hand over a building within the set timeframe can lead to termination of the development right or forced auction of the property. During the development right period, the building may not be divided into apartment properties or alienated in parts.

In the first half of this year, approximately 12,450 transactions involving apartments and private houses were registered in the Latvian housing market. This is 5% less compared to the same period last year. Although the number of transactions has decreased, prices continue to rise. The total transaction value reached 775.8 million euros, while the median amount of all transactions over the year grew by 5%, reaching 38,350 euros, according to Latio's housing market review for the first half of 2026.

"There are fewer transactions in the housing market, but prices continue to grow. The desire to live better clashes with a shortage of quality housing that fits buyers' budgets. This is neither a buyers' nor a sellers' market. This is a reality market – quality at an adequate price," states Edgars Šīns, Chairman of the Board at Latio. 

We invite you to read the housing market report for the first half of 2026 here.

Additional Information:
Dr. oec. Ksenija Ijevleva
Latio | Market Analyst
E-mail: ksenija.ijevleva@latio.lv
Mob. +371 26814932
www.latio.lv