Update No.15
July 2025
Greetings from Merito Partners
Real estate has long been regarded as a cornerstone of resilient investment strategy and at Merito Partners, we are elevating this asset class through a distinctive approach built on special situations, club deals and high-return strategies with sound risk management.
In this edition we share key insights from our market analysis, review of short-term hospitality in Riga, updates on our latest portfolio developments, and highight upcoming opportunities. We are also proud to introduce our two dedicated teams driving the execution of these projects.
Riga: A Hidden Gem in Europe
Recent economic trends show something that many smart investors are starting to see — Riga is one of the best places in the Baltics to invest in housing. Here’s why:
- Homes are more affordable in Riga than in other Baltic capitals. The average family in Riga can buy a home that is over 1.5 times bigger than what a family in Tallinn or Vilnius can afford.
- Mortgage loans are much smaller in Riga — about 60% lower than in other Baltic cities, even though loan conditions are similar.
- Wages are growing, interest rates are falling, and home prices are stable. This creates a good moment for buying property.
- There’s less competition. Fewer large developers are active in Riga compared to Tallinn and Vilnius.
- Riga is one of the few capital cities in Europe where a typical family can still buy a spacious home (over 90 m²), unlike in Western Europe, where homes have become less affordable.
These factors make Riga one of the most overlooked and — potentially most rewarding — real estate markets in the European Union.
Sources: Swedbank Macro Research – Baltic Housing Affordability Report (2024); Colliers Latvia; Comparethemarket.com – European Housing Affordability Data. https://www.swedbank-research.com/english/baltic_housing_affordability/2024/q4/hai_2024_q4_final.pdf
Short-Term Hospitality: The Best Use for Apartments in Riga’s Historic Centre
Recent trends clearly show that short-term rentals are becoming the most attractive way to use apartments in the centre of Riga. Here’s what makes this market so promising:
- Riga offers the best value in the region. Apartment prices are low, and rental returns are high compared to other nearby capitals.
- Riga was named the most affordable city in Europe for short trips in 2025 by the Financial Times.
- The number of short-term rental apartments has grown by 50% in the last 10 years. Around 2,500 units are active during peak season.
- Occupancy is solid at around 60%, and prices are still among the lowest in Europe — even lower than in cities like Bucharest and Chisinau.
- Global Airbnb trends show Riga could grow 5 times bigger, reaching up to EUR 50 million in yearly revenue.
- More professional operators are entering the market. Right now, only 25% of rentals are managed professionally, but service quality is quickly improving.
- New hotels are being built in Riga’s Old Town, which shows strong confidence from big players like Mogotel and AmberStone.
- Demand for serviced apartments is growing — especially from business travelers, military and embassy staff, and international students.
- Short-term rentals give owners more flexibility, allowing them to sell the property at any time, unlike long-term rental contracts.
All of this makes short-term rentals the smartest and most flexible way to use apartments in Riga’s city centre.
Strong Teams Driving Merito’s Real Estate Strategies
At Merito Partners, we believe that success comes from having the right people, clear goals, and strong responsibility. That’s why our real estate investments are not just about finding good opportunities — they are about putting the right experts in charge.
Our real estate platform, Merito Partners Real Estate Management AIFP, is built on two main strategies:
- Working with top developers through smart partnerships to build strong, market-ready projects.
- Finding hidden value in special situations, like old or underused buildings, and turning them into high-performing assets.
Each strategy is led by a dedicated team with the knowledge and motivation to get things done. This setup allows us to take on a wide range of projects — from improving city areas to creating more affordable housing — always aiming for strong returns for our investors and a positive impact on the cities we work in.
👉 Read here to meet the Team Behind Merito’s Real Estate Strategies
Case Studies: Merito in Action
We believe that results speak louder than words. In a dedicated article, we share the early outcomes of two of our real estate projects in Riga’s Old Town — Kaleju Street 18/20 and Pasta Street 6. These case studies reflect our approach to value creation through thoughtful upgrades, efficient operations, and careful planning.
If you’re interested in how we apply our strategy in practice, we invite you to take a closer look.
👉 Click here to read the full case studies.
New Investment Opportunities: Join the Next Chapter
Riga is becoming one of Europe’s top real estate markets — with strong fundamentals, good affordability, and low competition. At Merito Partners, we’re preparing new investment opportunities to match this momentum.
We offer focused club deals for 10–20 investors, combining equity and bank loans to fund high-return projects quickly. These deals move fast, so early interest is key.
- Deal size: EUR 2–5 million equity + debt
- Merito invests alongside you: at least 10% in every project
- Target returns: 20–30% net IRR
If you would like to be considered for future co-investment opportunities, you are welcome to submit your interest via our investor application form.
We look forward to exploring new possibilities together.