Apartment Sale Prices in Riga Rise Twice as Fast as Rents

According to real estate company "Latio", apartment sale prices in Riga have risen twice as fast as rents over the past year. Sale prices increased by 10–14%, while rents only rose by 5–6%.

Currently, about one in five Latvian residents live in rented housing. In the European Union, this share is much higher, often exceeding 50%. For example, in Germany, renters make up more than half the population, and in 2025 it was the only EU country where renting was more common than owning.

In June, 3,530 apartments were available for sale in Riga, of which over 64% were in new buildings. In new developments, the price per square meter reached €3,800 in the city center, €2,650 in other neighborhoods, and €3,100 for renovated pre-war buildings downtown. On the secondary market for new projects, central apartments averaged over €3,300 per sqm (up 10% year-on-year), while in outskirts the figure was €2,330 (+14%). Typical apartment blocks had average prices of €1,180 per sqm in outskirts and €1,560 in the center, also rising more than 10%.

In the rental market, 2,640 apartments were advertised in June. Only 35% were in typical block houses on the outskirts, while the rest were in new or renovated buildings. Monthly rent for a one-bedroom apartment in a new project was around €540 in the center, €500 in Imanta, and €460 in Āgenskalns. For two-bedroom apartments: €760 in the center, €720 in Āgenskalns, and €610 in Teika.

"Latio" market analyst Ksenija Ijevleva explains that the rental market is very sensitive to affordability. If a landlord asks for a price tenants are unwilling to pay, the deal simply does not happen. Therefore, rent increases hit a ceiling sooner. However, in Teika and Āgenskalns, rents often compete with center prices. More tenants are now considering Grīziņkalns and Avoti, where rents are gradually rising.

According to Eurostat, between 2010 and 2024, housing prices in the EU rose by 53%, while rents increased by only 24%. In Latvia, home ownership is still seen as a long-term stability guarantee, so if people have sufficient income, they prefer to buy rather than rent. Renting is more common during transitional life stages, such as studying or after moving to a new city.