In January, buyers were active on the market of prefabricated apartments in Riga. This was one of the reasons for increase in average apartment prices, states the latest market report made by Latio.

Despite the usual seasonal slowdown, the housing market started the year with an unexpected surge in buyer interest. The number of available homes has dropped by more than a third, while prices in Riga’s primary market segment for new developments have declined by 6%. Even unrenovated properties, once overlooked due to high construction costs, are now attracting buyers. Market analysts and real estate experts at Latio anticipate above-average activity in the first half of the year, partly driven by changes in capital gains tax, which have prompted buyers to close deals in January. Additionally, expectations of a Euribor decline and overall market stabilization are fuelling forecasts of rising property prices. These trends are highlighted in the latest Home Buyer Confidence Index.

The past year in the real estate market was marked by cautious optimism among buyers and sellers. While the first half of the year showed no significant signs of housing market recovery, the second half brought a notable increase in activity, prompting more buyers to make decisions. What trends do Latio experts foresee for the real estate sector in 2025?