TALLINN, Apr 11 (LETA--BNS) - Estonian real estate developer Everaus Kinnisvara is entering the Riga market with a residential building project comprising 28 micro-apartments located near the city center.

The planned development offers affordable living spaces for students and young professionals, while also presenting an attractive investment opportunity for those seeking stable rental returns. Construction is scheduled to begin in 2026, the developer said in a press release.

"Everaus Kinnisvara acquired the property in Riga three years ago," Janar Muttik, founder and CEO of Everaus Kinnisvara, said. "Our decision to expand into the Latvian market was based on our assessment that the Riga real estate market is several years behind Estonia in its development cycle, offering strong growth potential. Until now, however, the timing hadn’t been right to launch the project."

Today, market conditions have changed, and like in Estonia, the real estate sector in Latvia is showing signs of revival -- in fact, more actively than in Estonia. At the same time, Riga’s property prices remain significantly lower: in 2024, the average price per square meter in Tallinn was approximately 4,300 euros, while in Riga it was 2,700 euros.

"Both markets are showing moderate but stable growth, and with supply decreasing and buyer interest rising, conditions are ripe for price increases," Muttik added. "Riga and its surrounding area is home to nearly one million people, yet the number of new apartments entering the market is similar to Tallinn, which has only half the population. Considering the strong and growing demand for modern housing, now is the right time to move forward with the Riga project."

The development will be located on Latgales Street, near the scenic Daugava River, just outside Riga’s central district.

"Micro-apartments offer an affordable and efficient living solution ideal for students and young professionals," Muttik said. "At the same time, the development provides an attractive opportunity for real estate investors looking for stable rental income and solid growth potential. Drawing on our previous successful experience with micro-apartments in Estonia, we’re now bringing that proven concept to the Riga market."

In 2025, Everaus Kinnisvara will focus on design and permitting, with construction set to begin in 2026.