This research examines the influence of energy efficiency on the residential real estate market in Latvia, highlighting its environmental and socioeconomic aspects. The impact of laws, regulations, and market dynamics on energy efficiency enhancements is also highlighted, outlining current trends, regulatory structures, and economic elements that facilitate or obstruct the implementation of energy-saving initiatives. Special emphasis is placed on the impact of these policies on residential property prices, market dynamics, and the relationship between supply and demand. This research analyzes energy-related regulations and identifies deficiencies in the regulatory framework, elucidating the intricate relationship among law, market dynamics, and consumer behavior. The research mainly relies on empirical study methods, outlining the basis for a well-defined approach to evaluation, performance, and energy-saving solutions in the Latvian residential sector. The data was acquired by circulating a detailed survey among industry experts and residents of Latvia. The data was thoroughly evaluated using multiple regression analysis to estimate the property values in Latvia, which is impacted by numerous variables. The IBM SPSS program was used for statistical analysis.