A sharp drop in the Euribor interbank rate by 0.25 percentage points in June 2024 and subsequent easing reduced the cost of mortgage lending. This brought buyers back to the market, especially large families and investors.
After the winter slump, an unexpected surge in transactions was observed in January: the number of available properties fell by more than a third, and some market segments experienced shortages. This signaled a recovery in demand.
New changes in legislation have eased refinancing conditions, with a number of fees abolished and commission thresholds reduced. This has encouraged homeowners who are willing to change their loan terms.
Renting a home to avoid extreme risks is becoming a lifestyle choice—renting is no longer just a temporary measure, but a full-fledged alternative to buying. Cafes, coworking spaces, and city services have moved renting into a new category.
Latvians continue to invest in housing abroad, especially in Southern Europe, and foreign investors are attracted by the growing rental market – but government regulation has already restricted short-term rentals in some countries.
There is active construction of rental housing (ALTUM projects) in the regions. However, housing shortages in cities such as Ventspils, Cesis, and Jurmala remain a problem.
According to estimates, average housing price growth rates in Latvia are expected to be in the range of 3-7% by the end of the year. For example, a 60 m² apartment in Riga for €150,000 could rise in price to €154,500-160,500.
Breakdown by property type:
Property type Growth forecast
Studio (30 m², €75,000) to €77,250-80,250
Apartment (75 m², €200,000) to €206,000-214,000
Penthouse (100 m², €500,000) up to €515,000-535,000
Where the highest price growth is expected
In 2024 , the Latvian residential real estate market showed moderate growth and stability despite global economic challenges.
In Riga, apartment prices increased by 5-7% year-on-year, while in other major cities, such as Daugavpils and Liepaja, the growth was around 3-4%.
Most transactions with new apartments in the capital were concluded in the price range of EUR 100,000 to 150,000, indicating a steady demand for mid-market housing.
In 2024, there was an increased interest in suburban real estate due to the changing preferences of buyers seeking more spacious and environmentally friendly housing.
However, the segment of new buildings saw a one-third decline in sales, while sales in the secondary market and in prefabricated buildings increased.
The rise in mortgage interest rates due to the increase in the Euribor rate led to a decline in real estate activity. Many buyers have taken a wait-and-see attitude, waiting for lending conditions to stabilize.
Experts expect the real estate market to revive in 2025. Lower interest rates and stabilization of the economic situation may stimulate demand for housing. The market is expected to become more dynamic, and buyers will be willing to invest in green architecture and energy-efficient housing.
However, the issue of prices will remain relevant, and buyers will have to choose between more spacious housing outside the city or smaller apartments in the center. All in all, 2025 promises to be a favorable year for the Latvian real estate market, with the possibility of increased activity and price stabilization.
Source: http://relocation.com.ua/analiz-rynku-zhytlovoi-nerukhomosti-la/
The Latvian government has approved the transfer of a new military aid package to Ukraine, which includes anti-aircraft guns and a tactical unmanned surveillance system, Latvian Prime Minister Eвіка Silinia said.
“The government has just approved the transfer of NBS anti-aircraft guns, a tactical unmanned surveillance system and other necessary materials to the Ukrainian armed forces. This will help to improve both Ukraine’s air defense and intelligence capabilities,” she wrote on social media platform X on Tuesday.
“With each delivery, we demonstrate our friendship to the people of Ukraine and their fight against the aggressor Russia, which is the greatest threat to peace and security in the world. Latvia annually allocates 0.25% of its GDP for military assistance to Ukraine. We will continue to support Ukraine on a bilateral basis and together with our allies,” the Latvian Prime Minister added.
Ukraine and Latvia are working to increase drone production, Ukrainian Foreign Minister Dmytro Kuleba has said.
During a joint press conference in Kyiv with Latvian Foreign Minister Baiba Braže, Kuleba noted the great potential of Ukrainian and Latvian companies to increase production of attack UAVs.
“I am very grateful to Latvia for its leadership in the Drone Coalition. We are now working together to increase this production – we need more drones. I believe that Ukrainian and Latvian companies can really do a lot in this direction,” he said.
The minister also noted Latvia’s decision to join the Czech initiative to purchase artillery shells and noted that the production of shells was one of the central issues during the bilateral talks.
Kuleba also thanked Braža for making her first visit in her new position to Ukraine, which is a sign of special respect for Ukraine and its defenders.
Nova Poshta Group has launched the first Nova Post branch in Latvia – in its capital Riga, the group’s press service said on Friday.
According to the company’s press release on Friday, the Nova Post branch in Riga, which is open seven days a week, allows customers to receive and send documents, parcels and cargo up to 100 kg to Ukraine.
The cost of delivery to Latvia from Ukraine is: UAH 250 for documents, as well as UAH 400, UAH 600 and UAH 1.2 thousand for parcels up to 2 kg, 10 kg and 30 kg, respectively. When sending a parcel from 30 to 100 kg, 40 UAH is paid for each kilogram.
It is noted that the delivery time from Ukraine to Latvia or vice versa is 5 days.
In addition, there is a courier call service in Latvia through the Nova Poshta app.
“You can call a courier through the website and mobile application. Delivery or pickup by courier from the address is an additional UAH 100 for shipments up to 30 kg or UAH 250 for every 100 kg,” the company said.
Nova Poshta has already opened 68 branches in Latvia, Estonia, Lithuania, Poland, the Czech Republic, Romania, Germany, Slovakia, and Moldova, and plans to open in Hungary, Italy, France, and Austria by the end of the year.
As of the beginning of July 2023, the Nova Poshta network in Ukraine included more than 10 thousand branches and more than 14 thousand post offices.
The group of companies includes Ukrainian and foreign companies, including Nova Poshta, NP Logistic, NovaPay payment system and Nova Poshta Global.
Chairman of the Verkhovna Rada of Ukraine Ruslan Stefanchuk will be on a working visit to the Republic of Latvia on July 9-10, according to the press service of the Ukrainian parliament.
“The main purpose of the visit is to achieve international consensus on Ukraine’s path to NATO on the eve of the Vilnius summit of the Alliance, to strengthen assistance to Ukraine in countering the aggressor, support on the path of European integration,” the report said.
In Riga Stefanchuk will take part in the Summit of the heads of the parliaments of Latvia, Lithuania, Estonia, the Sejm of the Republic of Poland and Ukraine. This meeting will be the last high-level parliamentary event ahead of the NATO summit, which will be held July 11 in Vilnius.
The visit also includes meetings with newly elected Latvian President Edgars Rinkevics, former President Egils Levits, and talks with Latvian Saeima Speaker Edvards Smiltens and Prime Minister Krisjanis Karins.
