INFORMATION ON MARKET

The real estate market in Latvia has been experiencing dynamic changes over the past few years. Below are some key statistics and trends related to the Latvian real estate market as of the latest data available.

Latvia holds the position as one of the long-term leaders when it comes to growth of house prices in the European Union.

Between 2010 and the third quarter of 2023, house prices increased by 48% and rents by 22% (Source: Eurostat).

PRICE TRENDS

Riga: As the capital city, Riga’s real estate market typically shows the highest activity and price levels. The average price per square meter for apartments in Riga has seen a steady increase, with prices in central areas and new projects often being significantly higher.
Other Cities: Outside Riga, cities like Jurmala, Liepaja, and Daugavpils have more affordable real estate markets, although they also show upward price trends, especially in areas with new developments or significant infrastructure improvements.

Latvia takes the 2nd place in Europe for Rental yields according to www.globalpropertyguide.com

MARKET ACTIVITY

Transactions: The number of real estate transactions has been increasing, reflecting a robust demand for residential properties. This includes both the purchase of new apartments and the resale of existing ones.
New Developments: There has been a notable increase in the construction of new residential projects, particularly in Riga and other major cities, catering to both local buyers and foreign investors.

COMMERCIAL ACTIVITY

Growth: There is significant growth in the industrial and logistics real estate sector, driven by Latvia’s strategic location and the expansion of e-commerce. Modern warehouses and logistics centers near major transport hubs are particularly in demand.
Development: New industrial parks and logistics facilities are being developed, particularly around Riga and key transportation routes.

FOREIGN INVESTMENT

Investor Interest: Latvia continues to attract foreign investors, particularly in the residential real estate market. Riga is a popular choice for foreign buyers looking for investment properties, second homes, or rental properties.

Investment Trends: Foreign investment has also been seen in the commercial real estate sector, particularly in office buildings and retail spaces in prime locations.

RESIDENTIAL PROPERTY PRICES

Riga Central Area: €2,000-3,500 per square meter.
Suburban Riga: €1,200-2,000 per square meter.
Other Cities: €500-1,500 per square meter.

RENTAL YIELDS

Average rental yields in Riga range from 5% to 7%, depending on the location and type of property.

MARKET DYNAMICS

The residential real estate market has seen a steady increase in prices, with a 5-10% annual growth rate in recent years.
The number of new residential units being built is increasing, with several large-scale projects in development.

SOURCES

For the most up-to-date and detailed statistics, consider consulting sources such as:

Central Statistical Bureau of Latvia (CSB): Provides comprehensive data on various aspects of the real estate market.
Latvian Association of Real Estate Dealers (LANIDA): Offers market insights and reports.
Investment and Development Agency of Latvia (LIAA): Provides information on foreign investment trends and opportunities.

By monitoring these sources, investors can gain a better understanding of the current trends and future prospects of the Latvian real estate market.

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