Baltic Real estate Trends: Latvia 2026
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Rising costs continue to impact all real estate segments, including construction and development. We see cumulative inflation having a significant influence across multiple industries, including real estate. As a result, investors are increasingly prioritizing newly developed, high-quality real estate assets.
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Strong confidence and dominance from local investors are expected to continue throughout 2026. We also anticipate that more transactions will be structured through “club deal” formats, allowing multiple investors to participate in larger acquisitions together.
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Finally, Latvian-based AIFM companies are becoming increasingly active in the real estate sector, executing several bold transactions within the Latvian property market
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We observed that 2025 was still heavily influenced by the so-called Euribor crisis, which kept many Baltic investors relatively cautious and passive. However, local grocery store operators remained highly active within the retail segment.
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2025 also brought important developments in the hospitality sector. The Nord Prime team successfully attracted Hotusa Group (Eurostars Hotels) to one of Riga’s oldest hotels — Hotel Metropole by Semarah. This marked one of the first Eurostars Hotels transactions in the Baltic States and signals a renewed interest in hospitality investments across the region.
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Lower Euribor rates have revived interest in purchasing new houses and apartments, which is one of the main reasons local investors and developers are increasingly active in the residential segment. We expect this trend to continue across Riga and the greater Riga metropolitan area. In some cases, prices for new apartments in Riga remain more than 30% lower compared to Tallinn and Vilnius, creating attractive investment opportunities for Estonian and Lithuanian investors.
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Residential real estate remains a particularly active sector. At the same time, larger-scale investors continue to focus on stable, cash-generating Baltic assets, including Class A office buildings, industrial properties, and retail real estate.
