Latvian Housing Market Sees Regional Growth in 2025, Driven by SEB Bank Loans

Latvia’s housing market experienced a resurgence in 2025, with notable growth in regions outside of Riga and Pieriga. Driven by increased demand and stabilized Euribor rates, lending activity for housing purchases and construction rose significantly, according to data from SEB banka. While Riga and its surrounding areas continue to dominate the market, the regions of Ogre, Sigulda, Cēsu, and Valmiera are emerging as key areas for investment.

Regional Lending Surpasses 2024 Levels

In 2025, nearly one-third of housing loans issued by SEB Bank were allocated to properties located outside of Riga and Pieriga. Funding directed to the regions increased by 46% compared to 2024. The volume of loans granted for housing purchases or construction across Latvia was more than 40% higher in 2025 than in the previous year, with the number of transactions increasing by over a quarter.

The average loan amount in Latvia reached 92,000 euros in 2025, while regional loans averaged 78,000 euros.

Demand Shifts to Vidzeme and Zemgale

Approximately 44% of total funding in 2025 was allocated in Riga, around 27% in Pieriga, and just under 30% in regions beyond Riga and Pieriga. This proportion has remained relatively stable in recent years, but 2025 saw a distinct acceleration in regional growth.

The counties of Ogre, Sigulda, Cēsu, and Valmiera accounted for roughly a quarter of all funding allocated outside of Riga and Pieriga, representing a 59% increase compared to 2024. Vidzeme, particularly Valmiera, Cēsu, and Sigulda counties, led regional funding. Jelgava district demonstrated consistent activity in Zemgale. Demand in Kurzeme remained concentrated around Liepāja, while Latgale continued to lag behind other regions, with significantly lower funding allocations.

Around 30% of all funding outside of Riga and Pieriga went to larger cities – Liepāja, Jelgava, Jūrmala, Daugavpils, Rēzekne, and Ventspils. Liepāja, Jelgava, and Jūrmala experienced particularly high demand, several times greater than other regional cities.

Housing Preferences Vary by Region

Buyer preferences differed significantly across Latvia in 2025. In Riga, apartments in new, energy-efficient buildings were the most popular choice, both on the new and secondary markets. Buyers prioritized compact, modern apartments with low maintenance costs, and green loans were particularly sought after.

While apartments remained popular in larger cities like Liepāja, Jelgava, Valmiera, Jūrmala, demand for private houses and terraced houses grew rapidly, especially in suburban areas. In regional districts, private houses with land were the primary preference, offering space, privacy, and renovation potential. Apartments were less common in these areas, typically purchased for children or parents.

Looking Ahead

Māris Opincāns, Head of Personal Financing Department at SEB banka, anticipates continued lending activity in 2026, although at a more moderate pace than the rapid growth seen in 2025. Demand for energy-efficient properties is expected to remain strong, as buyers increasingly consider future costs alongside loan conditions. Stable demand is too predicted for private houses near cities. Less liquid properties in remote regions and those with poor energy efficiency may experience slower development.