How to Buy a Property in Latvia?

February 14th 2024 in Europe,Residency,Latvia
How to buy a property in Latvia?

Property investment is considered one of the best forms of making a profit and a key to long-term stability and financial prosperity. 

Latvia is a part of the European Union and is situated within Europe's Schengen Area. Latvia is one of the countries that has taken the course of development and growth and attracting foreign investments. Are property prices increasing in Riga or in Latvia? What is the actual cost per sqm? Should you consider buying in Riga or outside of the city? What are the taxes? What yields can I expect? 

This article gives you valuable insights into the Latvian property market.

Types of Latvian properties

You might be mesmerised by Riga's historical charm and dream of owning a stylish apartment or a cosy townhouse in the capital of Latvia. 

In Latvia, you can find various properties for sale, including apartments, houses, townhouses (semi-detached houses), and land plots. Apartments are typically located in multi-story buildings and range from cosy studios to spacious multi-bedroom units. Houses offer more space and privacy, often with a garden or yard. Semi-detached houses are a mix of apartments and houses sharing walls with neighbouring units. Land plots are vacant pieces of land where you can build your own dream property. 

Each property type offers different features and options for various preferences and need.

Housing prices in Riga 

On average, according to the last data from Central Statistical Bureau of Latvia, purchasing a property in Riga would cost you around $2,590 per square meter. Naturally, property prices are quite spread out. 

An apartment in Riga city centre might have a different price per square meter than a suburban house in Mezaparks.

 To put things in perspective, it means that, instead of buying an apartment in a big city like Paris, you can afford up to 5 properties in Riga. 

Also, housing prices in Riga are 41% cheaper than in Tallinn, the capital of the neighbouring Baltic country. The most expensive neighbourhoods in Riga are Old Riga and Marupe, while the cheapest are likely Bolderaja and Imanta. 

Property market trends 

You should remember that Latvia is very stable if you consider the property market trends. Let's look at the IMF's forecasts. We can see that Latvia's economy is expected to soar by 11.6% in the coming 5 years, resulting in an average GDP growth rate of 2.3%. 

Suppose you want to invest in real estate in Riga. In that case, it's a good thing because when people experience an increase in wealth, it typically translates to a surge in housing costs. Also, the average GDP per capita in Latvia has changed by 8.9% over the last 5 years. It's a solid number. This data is a positive signal - housing prices in Riga might soar in 2024 and after that. 

Buying property in Riga 

This is the 12-step process to purchase a property in Riga:

  1. Research the Riga property market and set a budget in euros. 
  2. Engage a reputable real estate agent familiar with Riga regulations. 
  3. View properties and choose one that complies with Latvian building codes. 
  4. Negotiate the price and terms by Latvian property laws. 
  5. Sign a preliminary agreement and pay a deposit, usually 5-10% of the property price. 
  6. Hire a professional to conduct due diligence and a Notary to draft the Notarial Deed. 
  7. Arrange the opening of an Escrow Account at a Latvian bank to provide secure money transactions. 
  8. Sign the final sales contract (Notarial Deed) and Application of Property Ownership Transfer in the presence of a notary. 
  9. Pay the remaining balance through the Escrow Account. 
  10. Pay the 1.5% state fee for the transfer of property ownership. 
  11. Obtain a Property Ownership Certificate from the Latvian Land Register. 
  12. Receive the property keys and complete the purchase, ensuring all documents are accurately translated if necessary.

What you can get

As mentioned, the average price per square meter in Riga is $2,590. A 1-bedroom property of 60 square meters would cost approximately $155,000, and a 2-bedroom of 85 square meters would cost roughly $220,000. 

However, the amount you pay for a property can differ based on its characteristics and where it's found. 

Housing prices in the top areas of Riga are usually at a premium. For about $300,000, you could get an apartment in Mezaparks, but a condominium in Jurmala might be priced at $280,000. Of course, some areas are cheaper. You could locate a property in Jugla for $120,000 or a property in Imanta for just $100,000.

Renting out in Riga 

Suppose you decide to buy and rent out a property to long-term tenants. In that case, you should target young professionals, students, and expats looking for a convenient and affordable place to stay in the city. Riga also offers excellent potential for short-term rental opportunities, such as holidaymakers and business travellers. 

Nowadays, rental yields in Riga are usually below 5%. It's not much. Rental yields in Riga are highest in the city centre, where properties close to public transport, amenities, and tourist attractions are in high demand. This demand keeps rental prices high, allowing landlords to maximise their return on investment. 

Finally, be aware that rental incomes in Riga are taxed at 10%, which is advantageous.

Is it worth buying real estate in Riga, then? 

Buying a property in Riga can be a fantastic idea for wise investors and those seeking a budget-friendly lifestyle. Riga's property market shows promise with a stable economy and the potential for future price increases. 

Compared to other European capitals, the city's affordability is a significant advantage, allowing individuals to own property without breaking the bank. Rental income opportunities in Riga are also appealing, with the potential to target various tenant profiles. While rental yields may not be exceptionally high, the city's low 10% tax rate on rental income makes it an enticing prospect for landlords. 

Moreover, Riga offers a vibrant and culturally rich environment, a low cost of living, and decent safety levels, enhancing its appeal to residents.


In summary, Riga offers exciting prospects for property investors and those seeking an affordable lifestyle. Still, it may not be the right choice for short-term residents or those unwilling to navigate potential challenges in the market. Careful consideration of individual circumstances and objectives is crucial before buying property in Riga.

Learn more about how to get Latvian residence permit by property investment.