The number of housing transactions in Latvia has increased by about 20 percent in the first nine months of this year, real estate company Latio told LETA.
The company noted that the housing market has become more active this year, with buyers making decisions more quickly.
Latio explained that part of the statistics reflects transactions that were postponed in previous periods and finalized only this year. With the EURIBOR rate being cut again in the spring and public signals indicating that inflation has peaked, the time required to sell a home is gradually decreasing.
Analyzing housing market trends over the year, Latio experts noted that although the number of one-person households in the country is growing significantly, Latvia remains the European Union (EU) leader in the share of people forced to live in overcrowded housing.
According to Latio’s Homebuyer Confidence Index, it took an average of 47 days to sell a home at market price in December. This indicator has been declining every month since April, when it stood at 58 days.
The data also show that 19 percent of homes sold in December were sold within one month of being advertised. This share has gradually increased during the year, from 14 percent in April to 19 percent in November and December.
In December, 15 percent of sellers asked a price that did not correspond to the market, which is in line with the monthly average since April. Meanwhile, 1 percent of buyers in December offered a higher price than the advertised price.
According to the Homebuyer Confidence Index, 18 percent of transactions in Riga in December involved new-build homes.
Latio also pointed out that the third quarter of 2025 was active in the Riga housing market in terms of transaction volumes. However, trends in property supply moved in the opposite direction. Compared with the same period last year, the number of apartments available for purchase in the third quarter fell by 18 percent, reaching approximately 4,010 listings in November. By contrast, around 3,100 apartments were available for rent. Nearly 35 percent of properties offered for sale, or 1,405 units, were located in standard-design housing projects.
An increase in buyer activity in 2025 was also observed in the regions.
One- and two-bedroom dwellings are increasingly in demand, driven not only by financial considerations but also by changes in household structure. According to OECD estimates, a growing number of people in Latvia are choosing or are forced to live alone. Over the past decade, the share of one-person households has increased by an average of five percentage points across all age groups. This trend negatively affects people’s ability to save. Energy-inefficient housing that does not meet modern standards represents a significant financial burden and offers limited prospects for value appreciation.
At the same time, Latvia leads the EU in the share of the population living in overcrowded housing, exceeding not only the EU average of 17 percent but also the figures for Lithuania and Estonia. Overcrowded housing is defined as a situation in which living space per capita is insufficient, negatively affecting overall quality of life. This issue is particularly acute for large families and for residents in regions where the supply of new housing is limited. In Latvia, nearly 41 percent of the population lives in such conditions. Although this rate has declined since 2010, it remains the highest among the Baltic states.
Source: BNS
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