The article discusses the influence of the real estate market dependent on changing external economical environment. During the last decade Latvia’s economical environment has been changing and the real estate market has developed rapidly and with great price fluctuations. The article describes the real estate market during the last decade as well as unemployment dynamics and inflation during this period. The specified object of the research was serial apartment market. During the research it was concluded that both the unemployment and inflation can influence the prices of the real estate objects and both factors influence the cyclical development. The research is based on the analyses of scientific literature and also information summarized by the author.