Riga, Dec 22 (LETA) - The number of housing transactions in Latvia has increased by about 20 percent in the first nine months of this year, the real estate company Latio informed LETA.

The company pointed out that this year the housing market has become more active, and buyers make decisions faster.

Latio explained that part of the statistics are transactions that were postponed in previous periods and closed only this year. With the EURIBOR rate being cut again in the spring, and the public signaling that inflation has peaked, the time it takes to sell a home is gradually decreasing.

Analyzing the housing market trends over the year, Latio experts have noted that although the number of one-person households in the country is growing significantly, Latvia is the European Union (EU) leader in the share of people forced to live in overcrowded housing.

Latio's Homebuyer Confidence Index data show that in December it took on average 47 days to sell a home at market price. This indicator has been decreasing every month this year since April, when it was 58 days.

It also shows that 19 percent of homes sold in December were sold within one month of the advertisement being published. This figure has gradually increased this year from 14 percent in April to 19 percent in November and December.

In December, 15 percent of sellers asked a price out of line with the market, which is the average for each month since April this year. In December, 1 percent of buyers offered a higher price than the advertised price.

According to the Homebuyer Confidence Index, 18 percent of transactions in Riga in December were for new-build homes.

Latio pointed out that the third quarter of 2025 was active in the Riga housing market in terms of the number of transactions. In terms of property supply, the dynamics were reversed. Compared to the corresponding period of the previous year, the number of apartments available for purchase in the third quarter decreased by 18 percent, amounting to approximately 4,010 offers in November. By contrast, around 3,100 apartments were available for rent. Almost 35 percent of the supply available for purchase, or 1,405 units, was in standard-design projects.

An increase in buyer activity in 2025 was also recorded in the regions.

One- to two-bedroom dwellings are increasingly in demand among buyers, which is not only due to financial considerations, but also to the structure of households. According to OECD estimates, more and more people in Latvia are choosing or are forced to live alone. Over the last decade, the number of such one-person households has increased by an average of 5 percentage points across all age groups. This trend has a negative impact on people's ability to save. Energy inefficient housing that does not meet modern requirements is a huge financial burden with little hope of increasing in value.

At the same time, Latvia leads the EU in the share of the population forced to live in overcrowded housing, outperforming not only the EU average (17 percent) but also Lithuania and Estonia in this category. Overcrowded housing is defined as a situation in which the living space per capita is insufficient, thus having a negative impact on the overall quality of life. This problem is particularly acute for families with many children and for people living in regions where the supply of new housing is limited. In Latvia, almost 41 percent of the population lives in such conditions. Although the rate has fallen since 2010, it is still the highest among the Baltic states.