Investing in real estate has been considered one of the most popular ways to save (and increase) your funds for many years. Today, anywhere in the world, it is no longer surprising to buy an apartment in order to rent it out later. But what if we consider buying apartments to create a hostel? At first glance, it would be almost the same, so what’s the difference?

Why buy real estate in Latvia now?

The Latvian real estate market has been relatively stable in recent years. In 2021, the cost per square meter in the secondary housing market was gradually growing, and it was possible to buy an apartment in Riga in the middle of the year at 880 per square meter. 

An interesting fact: in 2025, it is planned to change the property tax system in Latvia. Until then, the government decided to freeze the growth of the cadastral value of real estate, which means that an avalanche-like increase in apartment prices will not occur in the next 3 years. On the other hand, it is difficult to determine now how the market will react to the change in the tax system in 2025 (but we can expect a significant increase in the value of real estate). That is why many foreign investors consider the purchase of real estate in Latvia now as a profitable investment of their own funds.

Hostel apartment in Riga for €109,000
Hotel
Riga, Latvia
€109,000
2 Rooms

But let’s get back to our hostel. The Realting.com platform has a rather interesting offer in terms of investment. A two-room apartment is for sale in a renovated hostel in the center of Riga. Here you can consider the option of buying a larger apartment with three rooms.

What does it mean to buy an apartment as a hostel? This means that you are the owner of commercial real estate inside a ready-made business. You will not need to advertise the hostel or accommodate guests — only make a profit from renting your own apartments (minus a percentage for the maintenance of the entire hostel).

The hostel differs from a usual hotel in a number of nuances, the most important of which is that several rooms make use of a shared kitchen, bathroom, and toilet. At the same time, hostels most often even surpass hotels in popularity. The main reason is the low cost of living; the second, and no less important, is the possibility of communication between guests.

The hostel in which the apartments are for sale has a fairly advantageous location: it is near the Old Riga and the train station. In the building, the interior decoration in all rooms is the same: German plumbing and oak parquet on the floor. Ceilings have been replaced in the house, a new elevator has been installed, and the building has been completely reconstructed. In order for your room to be completely ready for living, you only need to install furniture. The seller offers a profitable promotion to the first buyers: if you buy an apartment before February 15, 2016, the kitchen will be installed at the expense of the seller.

Do you want to buy an apartment in Riga? No problem! Look for the best option for you in the «Real Estate of Latvia» section and leave a request for the property you like — the seller will contact you as soon as possible.