Riga, 2026 – The real estate market in Latvia’s capital, Riga, continues to demonstrate stable development in 2026, with several pronounced trends characterized by both price growth and a recovery in market activity following global disruptions.

Recovery of Market Activity

In 2025, Riga’s real estate market experienced a noticeable increase in activity after several years of low transaction volumes. The number of transactions rose significantly, buyer confidence strengthened, and the market began to move upward. Buyers showed increased activity, particularly in new developments and the most popular neighborhoods.

Prices Continue to Rise, but at a Reasonable Pace

According to the latest market data, residential property prices in Riga continued to grow gradually at the beginning of 2026—by approximately 6% to 9% per year, depending on the segment and specific location.

Market forecasts indicate that in 2026, price growth in the city could amount to around 5%–7%, provided that the economic environment remains stable and interest rates do not increase sharply.

Segment Differences and Demand Structure

• In the mass-market segment (standard-type apartments), demand is increasing while the number of available properties is decreasing, creating upward pressure on prices.

• Renovated and energy-efficient properties are currently often becoming market leaders, as they attract buyers with higher quality and lower operating costs.

• New projects and properties in attractive neighborhoods such as Teika, Āgenskalns, and Purvciems continue to maintain strong demand in 2026.

Geographic Shifts in Demand

Following a pattern that became established between 2023 and 2025, some buyers—especially families and professionals—are opting for larger homes outside the traditional city center or in well-connected neighborhoods that offer a higher quality of life and better infrastructure.

Long-Term Outlook

Analysts predict that over the next five years, overall price growth in Riga could reach approximately 25%–30%, provided that economic growth continues and demand remains stable. In addition, well-connected areas near the Rail Baltica corridor and in the Pierīga region may become particularly attractive investment locations in the future.

Market Factors and Risks

The development of the housing market is influenced by a range of external and internal factors—from demographic trends and rising income levels to financial conditions and dynamic changes in construction costs. Market demand remains primarily concentrated in Riga and the Pierīga area, while regional markets continue to develop at a slower pace.