Riga vs. Jurmala: Where is it more profitable to buy and rent real estate?

Buying real estate in Latvia isn't just a way to preserve capital, but also an opportunity to earn rental income or obtain an EU residence permit. But which should you choose: the capital, Riga, or the resort town of Jurmala?

Market and Prices

Riga is the largest market, offering a wide selection from budget apartments to premium apartments. Demand is stable year-round due to residents, expats, and students.

Jūrmala is a resort segment with a focus on premium properties. Prices are above average, with interest concentrated in coastal neighborhoods and new buildings by the sea.

Profitability and Rentals

Riga (long-term rentals):

• Demand is consistent throughout the year.
• Target audience: families, young professionals, expatriates, embassy staff, and NATO members.
• Management is simpler, with predictable cash flows. Short-term rentals are also popular: ROI is higher, but maintenance and wear and tear are higher.

Jurmala (long-term and seasonal rentals):

• Seasonality: Peak May–September.
• During the season, yields are higher than in Riga, but downtime is possible in winter.
• Audience: tourists, families, premium clients, second-home owners.
• Requires active management and marketing.
• Long-term rentals of larger apartments and houses are popular for families with children (proximity to international schools, sports centers, and health centers, and a child-friendly climate).

Residence permit through real estate

• Minimum investment: from €250,000.
• One-time government fee: 5% of the purchase price.
• Residence permit validity: 5 years, renewable.
• Read more about the conditions for obtaining a Latvian residence permit through real estate purchase here.

Both Riga and Jurmala are suitable for obtaining a residence permit; the choice depends on your goals.

Mercury Group has been operating in the Latvian real estate market for over 25 years. Only we have access to all luxury residential and commercial properties in Latvia, including a closed database of properties for rent and sale.

We will personally guide you through every stage of the transaction, help you find the perfect property, conduct the purchase and sale transaction or draw up a lease agreement, and provide post-sale negotiations (leasing management).