Real Estate in Riga

Characteristics of real estate in Riga

The city and the surrounding area offer a wide range of opportunities for renting or buying modern real estate. There are also ample opportunities to acquire land and buildings to develop them for specific needs, either with their owned resources or in cooperation with experienced and acclaimed real estate developers.

Riga boasts outstanding examples of successful cooperation between the city, property developers and businesses in the industrial, warehousing, logistics, office, retail, hotel and rental sectors. The rapid development of the city over the next decade and the available properties for further growth in these sectors create the basis for new players to enter the region

Ease the Housing squeeze

Riga is rapidly becoming a key hub for innovation and sustainable development. With initiatives like the "Rental Housing for Latvian Professionals" program, the city is addressing the growing demand for high-quality housing and commercial spaces, offering immense growth potential for investors.

About the program "Rental Housing for Latvian Professionals"

Among OECD countries, Latvia has one of the smallest social housing stocks, comprising less than 2% of the total housing inventory, compared to an average of about 7% in other OECD nations.
To address these challenges, the European Investment Bank (EIB), the Latvian Ministry of Finance, and the Latvian State Real Estate Company (SRE) have partnered with 18 municipalities to increase the availability of aordable housing in the country.
The "Rental Housing for Latvian Professionals" program aims to provide modern, energy-e cient, and aordable apartments for professionals and their families working in nationally and regionally essential sectors, such as education, emergency services, law enforcement, the military, and public administration.
The project targets the construction of up to 2,260 apartments, including 1,000 units in Riga, the capital city. The approach will be one of bundling the units with each bundle to be procured under availability payment based PPP framework with a target of ca. 1000 units and ca. 100-125 MEUR CAPEX for each bundle.
The project will be implemented under a "design-build-finance-maintain-operate by private partner" model. Starting in 2030, public sector availability payments will be incorporated into state and local government budgets, ensuring housing accessibility for residents upon completion of the construction phase.

Files for download

Real estate forum MIPIM 2025 catalogue

The Economic Profile of Riga 2025

Real estate in Riga 2024

Key advantages

Support from Riga City Council

Main sectors of real estate development in Riga

Office space

Most newly completed projects and A-class office developments currently in progress are certified according to sustainable construction standards such as BREEAM and LEED, contributing to the city's sustainable development.

In 2024, Riga's office market had the highest yield among the Baltic capitals while maintaining the lowest monthly rental rates, making it an attractive destination for investors. A positive trend has been observed in recent years, with tenants willing to sign lease agreements for office buildings still under construction.

Industry, warehousing, logistics

The supply and development of industrial spaces in Riga focus on properties built to order. Meanwhile, speculatively developed industrial projects are being occupied relatively quickly due to growing demand and the rapid development of infrastructure projects.
The average prime yield rates for industrial properties in Riga have remained stable. In 2023, 7% of the total investments in Latvia's real estate market were made in the industrial segment.

Retail

Riga is an ideal location for retail investment as the city boasts easy accessibility, attracting shoppers from all over the country and the Baltics. The city holds some of Latvia's most extensive shopping and entertainment centres, and people from all over the country come to Riga to shop, dine and enjoy entertainment.

Residential space

Demand for residential space in Riga’s real estate market has far exceeded supply in recent years, especially for housing in new projects. In the most sought-after neighborhoods, economy class apartments are mostly reserved already before the buildings are put into use.