Latvia’s housing market is now weakening with the average apartment prices in Riga falling by around 1% during 2020, following y-o-y rises of 0.5% in 2019, 1.3% in 2018, 6.5% in 2017 and 5.3% in 2016. Quarter-on-quarter, house prices in the capital city increased slightly by 0.6% during the latest quarter.

In Riga, apartment supply was down 10% in December 2020 from a year earlier, according to Arco Real Estate. Over the same period, the supply of apartments also decreased in all major housing districts in Riga, with Mežciems registering the biggest decline of 28%.

The average cost of an apartment in the Latvian capital is €2,800sqm and a typical gross rental yield is 4.1%. The Latvian economy contracted by 3.5% in 2020.