What is more profitable? Buying or renting an apartment in 2025?
Latvia’s real estate market in 2025 remains dynamic, with shifts in both purchase and rental prices sparking debates: Is now the right time to invest in property, or is renting more advantageous? Let’s explore the facts and trends to help you make an informed decision.
Buying vs. Renting
First, assess your financial capacity. According to the Bank of Latvia, the average apartment price in Riga in 2024 was approximately €1,500–1,800 per m², while in regional cities like Jelgava or Liepāja, prices started at €800 per m². If you can save 10–20% for a down payment and manage a mortgage, buying may offer long-term benefits.
For flexibility, renting is popular among young professionals and those avoiding long-term commitments. The average monthly rent for a 2-bedroom apartment in Riga is €400–600, dropping to €250–400 in regional areas. Renting avoids loan obligations and allows quick relocation.
Market Trends
Per the Ober Haus Market Report, demand for energy-efficient homes (A or B energy class) continues to rise in 2025, as they reduce utility costs by up to 30%. In Riga, neighborhoods like Šķirotava and Ziemeļu rajons are seeing active sales, while the rental market favors properties with modern finishes and open-plan layouts.
Financial Considerations
Mortgage rates in Latvia currently range from 3.5% to 4.5%, with special offers for first-time buyers.
Additional purchase costs (notary fees, state duties, insurance) can total 5–7% of the property’s value.
For rentals, carefully review contracts for terms on utilities, repairs, and lease duration.
Where to Find Good Deals
Riga: Affordable options in areas like Pārdaugava or Ķengarags; higher prices in central districts.
Regions: New developments in Jelgava or Liepāja offer prices 20–30% lower than Riga.
Online platforms: Check Nopo.lv, City24.lv, and SS.lv for updated listings.
Final Decision
Buying suits those planning to stay in one place for 5–7+ years and who can handle mortgage obligations.
Renting is ideal for flexibility and risk avoidance.
Consult financial advisors or real estate agents to evaluate your situation. Remember: A successful property investment starts with thorough analysis!
