Riga real estate market trends

The real estate market for series apartments in Riga has seen prices return to 2006 levels, with the average price per square meter reaching just under 1,200 EUR. Despite these price levels, mortgage affordability has improved significantly compared to 2006, as average net salaries in Latvia have increased from 308 EUR to 1,400 EUR, reducing mortgage payments as a percentage of income from approximately 90% to less than 20%.

Series apartments continue to represent nearly half of all housing transactions in the city. While price growth has been moderate this year—approximately 7% on the left bank of the Daugava and 4% on the right bank—analysts suggest that rising prices in neighboring markets like Vilnius may drive further demand.

Concurrently, Estonian real estate developers are expanding into Riga’s new development market. These developers find the market attractive because new apartments in Riga are priced lower than the average secondary market apartment in Tallinn, even though construction costs remain comparable between the two cities.