Latvia’s housing market continued rising strongly into 2026, with residential property prices increasing by 11% year-on-year in Q4 2025. Despite broader economic softness, limited housing supply, improving financing expectations, and continued demand for quality apartments supported market resilience.

Riga’s property market entered 2026 with growing demand for energy-efficient apartments and limited modern housing supply. Buyers increasingly prioritized lower utility costs, modern building standards, and long-term operational efficiency, creating stronger demand for high-quality residential developments across Latvia’s capital.

Latvia regained international investor attention in 2025 as stricter and more expensive residency programmes across Southern Europe increased demand for lower-cost EU alternatives. Riga’s affordable property market and Latvia’s flexible residency structures strengthened the country’s position within the European investment migration sector.