News

Latvian Real Estate Market Overview 2024: Agricultural Land

22. April, 202523. April, 2025

The real estate company ARCO REAL ESTATE has published an analytical report – the Latvian Real Estate Market Overview – which compiles detailed information about developments in the sector over the past year. The market overview is a useful resource for industry professionals, developers, as well as the banking sector involved in mortgage lending. This is the company’s 24th edition, and it remains the only market analysis of such scope in the Latvian real estate sector. You can view full report HERE. There is insight into the agricultural land market:

NUMBER OF TRANSACTIONS AND SOLD LAND AREA

In 2024, the agricultural land market experienced an increase in activity, making it one of the most active market segments. For the first time in the past four years, the number of transactions increased. Compared to 2023, the number of transactions rose by 25%. In the past year, 935 transactions were registered, bringing the figure close to the statistics of 2021.

AGRICULTURAL LAND PRICES

In 2024, activity in the agricultural land market increased rapidly, and the price of agricultural land rose. The average sale price of agricultural land increased to EUR 4,995/ha. Compared to 2023, the average price per hectare rose by 5% last year. This price increase was the lowest in the past five years.

Most transactions took place outside the public offer, with the buyer and seller agreeing on a mutually acceptable price, which often significantly exceeded the average prices. In 2024, more than ten transactions in the regions of Kurzeme, Zemgale, and Latgale recorded record-high prices – over EUR 15,000/ha.

As the shortage of fertile and high-quality agricultural land has been observed throughout Latvia for many years, there was interest in uncultivated and neglected agricultural land across all regions of Latvia. This was evidenced by the steady price growth in all regions of the country.

In 2024, the highest number of transactions were registered in the price range of 4000 to 5000 EUR/ha. This price range accounted for 21% of the total number of transactions. Thus, the most popular price range increased, as in 2023 the highest number of transactions were registered in the price range of 3000 to 4000 EUR/ha.

Information source: Arco Real Estate

On April 1, the registration for seasonal farmworkers will begin

28. March, 202531. March, 2025

As every year, from April 1st to November, it is possible to register seasonal agricultural workers.

During this period, farms can register workers for seasonal tasks such as sowing or planting fruit trees, berry bushes, and vegetables, plant care, harvesting, as well as sorting fruits, berries, and vegetables. Registered farm workers may also be employed in land preparation tasks, including stone collection.

Detailed information on the seasonal farm worker income tax regime and registration procedure is available on the Rural Support Service website under the section “Seasonal Farm Workers”.

Employee registration must be done through the service’s Electronic Application System (EPS). This process can be conveniently completed using the LAD mobile app. In the “Sezonas ls” section of the app, users can find information on already registered farm workers, edit data, add new employees, as well as mark worked days and calculated payments. The app also provides an overview of tasks performed by employees in previous days and their earned wages.

In 2024, 3,823 farmers participated in seasonal work, employed by 473 farms across all regions of Latvia. Previous years’ statistics and results are summarized in the LAD report “Seasonal Farm Workers – Conclusion of the Tenth Year”.

Information source: Rural Support Service

Support for investments in the measure “Investments in tangible assets”

26. March, 202531. March, 2025

From April 14 to May 14 farmers and processing companies can apply for support under the measure “Investments in Tangible Assets” to make investments in farms and enterprises. Support is available in two sub-measures.

4.1: “SUPPORT FOR INVESTMENTS IN RURAL FARMS”

The aim of this measure is to support rural farms and their investments in energy efficiency, the use of renewable energy, and emission reduction, as well as ensuring alternative energy sources in emergency situations. Various types of investments are eligible for support in organic farms. However, support is not granted for the purchase of agricultural tractors and self-propelled harvesting machinery.

Available funding allocation for this support measure:

• Small farm group: EUR 2.4 million;
• Medium and large farm group: EUR 5.6 million;
• Cooperative societies: EUR 2 million.

4.2: “SUPPORT FOR INVESTMENTS IN PROCESSING”

The available funding for this sub-measure is EUR 2 million. The goal of the measure is to promote the use of renewable energy in agriculture, the installation of equipment, or the provision of alternative water resources necessary for business operations in emergency situations.

Within the measure, only investments in the purchase of fixed assets and construction are eligible, as long as they are necessary for the installation of renewable energy production equipment or the establishment of deep water boreholes.

The deadline for project implementation is no later than October 1, 2025. Project applications must be submitted through the Rural Support Service’s Electronic Application System. Projects can be implemented with support from the European Union’s European Agricultural Fund for Rural Development and the Rural Development Programme for the 2014-2020 planning period.

Information source: Rural Support Service