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Market Intelligence Report | January 2026

LATVIA STUDENT HOUSING MARKET

Nascent but rapidly emerging PBSA market in the Baltics. University dormitories dominate with new co-living operators (SHED, Duck Republik) entering the modern segment.

€21MOrganized Sector
8,500Total Beds
71KHE Students
12%PBSA Penetration

Supply Landscape & Market Structure

University dormitories control 76% — modern co-living operators emerging in Riga with SHED and Duck Republik

CityStudentsCurrent BedsBed GapStudents/BedPriority
Riga48,0007,20006.7🟢 BALANCED
Jelgava5,80045042012.9🟡 MODERATE
Daugavpils3,20028020011.4🟡 MODERATE
Liepaja2,10018013511.7🟡 MODERATE
Valmiera1,5001507510.0🟢 MODERATE
Other Regional10,4002401,32043.3🔴 HIGH
High: >500 bed gap Moderate: 100-500 bed gap Balanced: <100 bed gap

Top Operators by Bed Count

University of Latvia leads — SHED and Duck Republik pioneering modern PBSA

Univ. of Latvia
2,500 (29.4%)
RTU
1,800 (21.2%)
RSU
800 (9.4%)
SHED Co-living
450 (5.3%)
Duck Republik
350 (4.1%)
Other Uni
1,400 (16.5%)
Market Structure: University dorms = 76% | Private PBSA = 24%
SHED opened 2023 — first modern co-living in Latvia. Duck Republik expanded 2024

Market Structure

University-dominated with growing private sector

€21MOrganized
University Dorms: €6M (28%)
Private PBSA: €15M (72%)
TAM Potential: €85M

Supply by City: Current vs Pipeline

Riga dominates with 85% of beds — regional markets significantly underserved

Riga
7.2K + 0.8K Pipeline
Jelgava
450 + 50
Daugavpils
280 + 30
Liepaja
180 + 50
Valmiera
150 + 50
Ventspils
120 + 30
Current Pipeline

Demand Analysis & International Students

10K international students (14% of total) — India is leading source market with 18% share

71KTotal StudentsMinistry of Education 2024
10,000Intl Students14% of total
8.4Students per Bedvs UK 1.9
€32MAddressable Mkt15% penetration target

Top Universities by Enrollment

University of Latvia leads; RSU has highest intl concentration (25%)

Univ. of Latvia
15,250 (16% intl)
RTU
14,500 (15% intl)
RSU
9,500 (25% intl)
LBTU (Jelgava)
5,800 (8% intl)
Daugavpils
3,200 (6% intl)
RISEBA
2,800 (29% intl)
20%+ International <20% International

International Student Source Countries

India leads with 18% — diverse European and global mix

India
1,800 (18%)
Germany
900 (9%)
Sweden
750 (7.5%)
Finland
600 (6%)
Israel
500 (5%)
Other
5,450 (54.5%)

🏢 Modern PBSA: The Co-Living Revolution in Latvia

SHED vs Traditional Dorms

New co-living concept offers 3x rent but premium amenities

🏢 SHED Co-living (2023)
• Modern design apartments
• Co-working spaces included
• Community events program
• €450/month avg rent
• 450 beds in Riga
🏫 University Dorms
• Basic shared facilities
• Limited common areas
• Academic year only
• €90-150/month avg rent
• 6,500 beds total

Penetration Rate Comparison

Latvia's 12% vs UK's 54% — significant growth potential

UK (Benchmark)
54%
Finland
18.6%
Riga
15%
Latvia Avg
12%
Valmiera
10%
Daugavpils
8.8%

💰 Student Cost of Living Analysis

Monthly Living Costs: Dorm vs Apartment

Latvia offers affordable living — total costs €470-1,150/month

DORMITORY OPTION

University Dorm€90-150
Food & Groceries€100-250
Transport + Other€100-305
Total Monthly€290-705

APARTMENT OPTION

Shared Apartment€200-350
Food & Groceries€100-250
Transport + Other€150-550
Total Monthly€450-1,150

Tuition: €800-12,000/year depending on program (RSU Medicine: €12,000)

Revenue by City Market

Riga dominates with 94% of organized sector revenue

€21MOrganized
Riga: €19.8M (94%)
Regional: €1.4M (6%)
TAM: €85M (15% penetration)

Investment & Financial Analysis

€24.5M development activity 2023-2026 — SHED pioneering modern PBSA segment

€24.5MInvestment Activity2023-2026
€300Avg Monthly RentRange: €90-700
92%Avg OccupancyPBSA segment
1,600Pipeline Beds2023-2026

Major Developments 2023-2026

SHED leads private investment — universities upgrading dormitories

SHED Riga
€8M (450 beds) 2023
RTU Hotel
€6M (400 beds) 2025
Duck Republik
€5M (350 beds) 2024
UL Renovation
€3.5M (300 beds) 2024
Ventspils Loft
€2M (100 beds) 2025

Private vs University Rent Comparison

3.7x premium for modern co-living vs basic dorms

SHED Co-living
€450/month
Duck Republik
€280/month
Apart Hotel TOMO
€230/month
RSU Housing
€150/month
RTU Dorms
€130/month
UL Dorms
€120/month

Insight: International students willing to pay premium for quality — segment is underserved

Investment Thesis: Latvia Student Housing

Early-stage Baltic market with proven co-living demand. SHED's 2023 success validates modern PBSA concept. EU membership provides regulatory stability. Strong growth potential with limited competition.

€85MTAM Potential
2,150Bed Gap
14%Intl Students
12%Penetration

Strategic Opportunities & Risk Assessment

First-mover advantage in Baltic PBSA with proven co-living model

🟢 GREEN FLAGS
  • SHED success validates modern PBSA demand (2023)
  • EU membership — regulatory stability and access
  • High intl student ratio (14%) seeking quality housing
  • Low penetration (12%) vs Western markets
  • Affordable development costs vs Western Europe
🟡 WATCH LIST
  • Small absolute market (71K students total)
  • Declining domestic enrollment (down from 85K in 2019)
  • Riga concentration (68% of students)
  • Limited institutional investor track record
  • Competition from cheap university dorms
🔴 RED FLAGS
  • Russia/Belarus border proximity (geopolitical)
  • Small domestic population (1.9M)
  • Brain drain to Western Europe
  • Limited exit options for investors
  • Currency risk (though €-denominated)

📱 How Gen Z Students Discover Housing in 2026

International students increasingly rely on AI assistants for accommodation research before arriving in Latvia

🔍 Traditional SEO
Optimizing for Google rankings
Declining relevance as Gen Z uses AI
🚀 GEO Strategy
Optimizing for AI citation
First-mover advantage available
📊 RAYSolute offers GEO optimization for student housing operators
raysolute.com/geo-for-education