The annual average interest rate on new residential loans in Latvia rose for the first time in 2022 after more than 10 years of gradual decline. In 2023, the average mortgage rate saw a significant increase to almost *** percent. In 2021, the rate was at its lowest, at **** percent.

As of January 2025, Latvia was the euro area country with the highest interest rate for loans. The long-term maturities in that Baltic country were on average over 8.19 percent. Meanwhile, the composite cost for short-term loans in Malta amounted to 3.65 percent, which was the lowest rate in the Eurozone.

Latvia - Overcrowding rate: Owner, with mortgage or loan was 36.20% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Latvia - Overcrowding rate: Owner, with mortgage or loan - last updated from the EUROSTAT on June of 2025. Historically, Latvia - Overcrowding rate: Owner, with mortgage or loan reached a record high of 47.70% in December of 2010 and a record low of 24.60% in December of 2013.

Companies operating in the third-party real estate industry have had to navigate numerous economic headwinds in recent years, ranging from rising interest rates, spiralling inflation and muted economic growth. Typically, estate agents can earn income via fees and commissions charged to clients, which allows them to protect their operating profit margin from property price fluctuations. Revenue is projected to sink at a compound annual rate of 0.6% over the five years through 2025, including an estimated rise of 1.2% in 2025 to €207.6billion, while the average industry profit margin is forecast to reach 35.1%. Amid spiralling inflation, central banks across Europe ratcheted up interest rates, resulting in borrowing costs skyrocketing in the two years through 2023. In residential markets, elevated mortgage rates combined with tightening credit conditions eventually ate into demand, inciting a drop in house prices. Rental markets performed well when house prices were elevated, being the cheaper alternative for cash-strapped buyers. However, even lessors felt the pinch of rising mortgage rates, forcing them to hoist rent to cover costs and pricing out potential buyers. This led to a slowdown in rental markets in 2023, weighing on revenue growth. However, this have started to turn around in 2025 as interest rates have been falling across Europe in the two years through 2025, reducing borrowing costs for buyers and boosting property transactions. This has helped revenue to rebound slightly in 2025 as estate agents earn commission from property transactions. Revenue is forecast to swell at a compound annual rate of 3.7% over the five years through 2030 to €249.5 billion. Housing prices are recovering in 2025 as fixed-rate mortgages begin to drop and economic uncertainty subsides, aiding revenue growth in the short term. Over the coming years, Proptech, which has been heavily invested in, will force estate agents to adapt, shaking up the traditional real estate industry. A notable application of Proptech is the use of AI and data analytics to predict a home’s future value and speed up the process of retrofitting properties to become more sustainable.

Latvia - Severe housing deprivation rate: Owner, with mortgage or loan was 6.90% in December of 2023, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Latvia - Severe housing deprivation rate: Owner, with mortgage or loan - last updated from the EUROSTAT on July of 2025. Historically, Latvia - Severe housing deprivation rate: Owner, with mortgage or loan reached a record high of 18.80% in December of 2008 and a record low of 5.50% in December of 2020.

The Direct Real Estate Activities industry have come up against numerous headwinds in recent years, ranging from the COVID-19 outbreak in 2020 to the high base rate environment in the years since, which has inflated borrowing costs for potential buyers. This is a sharp contrast to the ultra-low interest environment seen over the decade following the 2008 financial crisis. Still, revenue is forecast to edge upwards at a compound annual rate of 0.6% over the five years through 2025 to €622.9 billion, including an anticipated rise of 0.8% in 2025. Despite weak revenue growth, profitability remains strong, with the average industry profit margin standing at an estimated 18.9% in 2025. Central banks across Europe adopted aggressive monetary policy in the two years through 2023 in an effort to curb spiralling inflation. This ratcheted up borrowing costs and hit the real estate sector. In the residential property market, mortgage rates picked up and hit housing transaction levels. However, the level of mortgage rate hikes has varied across Europe, with the UK experiencing the largest rise, meaning the dent to UK real estate demand was more pronounced. Commercial real estate has also struggled due to inflationary pressures, supply chain disruptions and rising rates. Alongside this, the market’s stock of office space isn’t able to satisfy business demand, with companies placing a greater emphasis on high-quality space and environmental impact. Properties in many areas haven't been suitable due to their lack of green credentials. Nevertheless, things are looking up, as interest rates have been falling across Europe over the two years through 2025, reducing borrowing costs and boosting the number of property transactions, which is aiding revenue growth for estate agents. Revenue is slated to grow at a compound annual rate of 4.5% over the five years through 2030 to €777.6 billion. Economic conditions are set to improve in the short term, which will boost consumer and business confidence, ramping up the number of property transactions in both the residential and commercial real estate markets. However, estate agents may look to adjust their offerings to align with the data centre boom to soak up the demand from this market, while also adhering to sustainability commitments.

Latvia - Housing cost overburden rate: Owner, with mortgage or loan was 3.10% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Latvia - Housing cost overburden rate: Owner, with mortgage or loan - last updated from the EUROSTAT on June of 2025. Historically, Latvia - Housing cost overburden rate: Owner, with mortgage or loan reached a record high of 28.80% in December of 2011 and a record low of 3.10% in December of 2024.

Latvia - Housing cost overburden rate: Owner, no outstanding mortgage or housing loan was 6.20% in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Latvia - Housing cost overburden rate: Owner, no outstanding mortgage or housing loan - last updated from the EUROSTAT on June of 2025. Historically, Latvia - Housing cost overburden rate: Owner, no outstanding mortgage or housing loan reached a record high of 10.30% in December of 2011 and a record low of 3.80% in December of 2020.