For several years now, Latvia’s residents have consistently regarded real estate as the best type of investment, according to a survey carried out by Swedbank*. A third of residents (36%) would invest primarily in buying real estate. This is followed by investing in gold, seen as the best option by just under a quarter (23%) of residents, and investing in the third pension pillar (22%). Meanwhile, the biggest increase compared with previous years is seen for investment funds, which 15% of residents now consider the best type of investment.

The most commonly used financial instruments among Latvia’s residents are savings tools, savings accounts and deposits, used by 39% of residents, along with the third pension pillar, in which 36% invest, the survey shows. Among investors, meanwhile, the most popular choices are investments in company shares and investment funds.

The survey shows that the main reasons residents choose to invest are related to security – savings for unforeseen circumstances (37%), financial stability in old age (36%) and investing as a way of saving (36%).

“The main factor cited as discouraging people from investing, meanwhile, is a lack of funds, which points to a widespread belief that investing is only accessible to people with larger financial resources. Some of those surveyed also see investing as a risky or complicated process. In today’s investment world, these obstacles have practical solutions, since it is possible to invest with small amounts too, and in ready-made instruments that require no specialist knowledge,” says Kristaps Kopštāls, head of investment support at Swedbank.

Among residents who are not yet investing but plan to, the desire to start with small amounts dominates, with most willing to invest up to EUR 100 a month. Of those planning to start investing, most would choose investment funds (28%), a substantial increase compared with 2024. Although the second most popular choice is direct investment in company shares (9%), the number of residents who would choose direct investments has fallen significantly since 2024.

The main factors motivating people to start investing are the wish to earn a return (26%), the option to invest small amounts (23%) and protecting funds from inflation (15%).