Estonian developers expand into Riga real estate market

Estonian real estate developers are increasingly targeting the new development market in Riga, Latvia. Despite construction costs being comparable to those in Estonia, new apartments in Riga are available at prices lower than the average secondary market apartment in Tallinn.

Industry experts, including Kristjan-Thor Vähi, Ivo Volkov, and Martti Krass, suggest that Tallinn's higher prices are driven by land costs, parking requirements, and permitting processes. While local Latvian buyers may find certain plots too expensive, Estonian developers are finding the Riga market attractive, though they face competition from Scandinavian investors.