Rental housing in Latvia: price changes and forecasts

The period of the pandemic has significantly affected the rental real estate market in Latvia. Average prices for rental housing decreased depending on the type of a property. Experts name several reasons for such changes, including a decrease in the number of tourists coming to the country, as well as an increase in demand for housing purchases due to the unstable economic situation.

As of today we may note the following decrease in rental prices:

• new buildings - 19%;
• pre-war houses - 13%;
• average houses - 8%;
• renovated buildings - 7%.

Another trend is the fact that the demand for long-term rentals is growing in the country. But the number of such offers is growing even faster. Homeowners want to have a stable income, which is why many of them refused to provide short-term leases for the quarantine period, since this option for earnings might be unstable.

Current prices for rental housing in Latvia

Today, the average rental price in the country is about 11 euros per m2. Depending on the type of property, we may note the following prices:

• in new buildings - from 12 to 15 euros per sq.m;
• for renovated houses - about 9 euros per sq.m;
• in other cases - up to 7-8 euros per sq.m.

It is also worth noting that it is in the renovated houses that the largest number of objects available for rent is located. This type of property makes up about 54% of all proposals. New buildings account for about 11%.