Riga Housing Prices Grow Twice as Fast as Rents
In Riga, home purchase prices have risen by 10–14% over the past year, while rental increases remain moderate, according to data from real estate company “Latio”.
In June, 3,530 apartments were available for sale in Riga, of which more than 64% were in new buildings. Average transaction prices in the primary new-build market remained unchanged compared to May. In Riga’s city center new builds, the square meter price was €3,800, in neighborhoods €2,650, and in renovated pre-war buildings in the center €3,100. Over the year, price growth reached 10–14%. In the secondary market of new projects, prices in the center exceeded €3,300/m² (+10% year-on-year), while in neighborhoods they reached €2,330/m² (+14%). Series-built apartment prices in neighborhoods averaged around €1,180/m², and in the center €1,560/m², with annual growth of over 10%.
Meanwhile, in the rental market, 2,640 apartments were offered in June, of which only 35% were series-built homes in neighborhoods. The majority—1,718 rental apartments—were in new projects and renovated buildings. For one-bedroom apartments in new builds, monthly rent in the center was approximately €540, in Imanta €500, and in Āgenskalns €460. Two-bedroom apartments in the center rented for €760, in Āgenskalns €720, and in Teika €610. Overall, rent growth was moderate and failed to keep pace with sales prices.
According to Eurostat data, from 2010 to 2024, housing prices in the European Union rose by 53%, while rents increased by only 24%. Ksenija Ijevleva, market analyst at “Latio”, says the rental market is a direct mirror of purchasing power—if tenants are unwilling to pay the asking price, no deal is made. Few owners can afford to keep an apartment empty, so most adapt to market conditions. Exceptions are Teika and Āgenskalns, where rents often compete with center prices, and more tenants are considering Grīziņkalns and Avoti neighborhoods.
In Latvia, only about one in five residents lives in rented housing, while in Germany more than half do. According to “Latio”, buying a home in Latvia is still closely linked to a sense of security, and people view it as a long-term stability guarantee. Renting becomes a solution during life stages when purchasing is not yet possible—studies, early career, or after relocation. The analyst emphasizes there is no single correct formula; the choice between renting and buying depends on individual circumstances, and property still serves as an emotional and financial safety cushion.
