Real estate for your business

In Q1 2026, the investment market in Latvia remained moderate with transaction volume estimated at around EUR 30 million, including the pending SKY&More SC transaction. Notable deals included EfTEN Capital’s disposal of the DSV logistics centre (ca EUR 9 million) and the acquisition of the Helio biroji office building near Riga Airport, both by local investors. Still, market activity has been robust, with a clear shift towards development-oriented deals rather than income-generating assets. This is evidenced by a notable increase in transactions involving both brownfield and greenfield sites. Local companies have been the primary drivers, acquiring land either for owner-occupation or for smaller-scale development projects, predominantly in the residential segment. In addition, VGP acquired nearly 5 hectares of land near Riga Airport for approx. EUR 4.2 million, highlighting continued investor interest in development opportunities. Overall, the continued absence of prime asset transactions – now extending to nine consecutive quarters – has limited price discovery and kept prime yields broadly stable. The market remains dominated by domestic capital, with international investor participation still constrained.

Offices (2026 Q1)

The Riga office market is showing early signs of renewed activity, suggesting the potential for improved take-up. Development activity remains limited, with only the K26 renovation project (ca 1,600 sqm) delivered during the quarter. Market attention focuses on Class A schemes, including Preses Nama Kvartāls, Novira Plaza, Satekles Biznesa Centrs, Verde C building and the Magdalena Quarter, while uncertainty persists regarding the timing of construction starts for other planned developments. As a result, new projects are pushing prime asking rents to the 16-20 EUR/sqm range. After a relatively quiet period, mid sized occupiers have begun to make decisions, primarily relocating from outdated or poorly accessible locations. Larger tenants are also increasingly exploring options; however, this activity remains at an early stage, with potential transactions more likely to materialise in 2027–2028. Developers offering ready to use office solutions are capturing demand from occupiers seeking rapid relocation or lacking the capacity to manage fit-out processes independently.

Industrial (2026 Q1)

In Q1 2026, the Riga industrial market remained stable, supported by an active development pipeline and the launch of new projects. Notably, VGP was the first to commence new construction in Dreiliņi, signalling continued expansion among major developers, while several smaller-scale projects have also been initiated by developers outside the top tier. Recent completions include part of Lidostas Parks V by Piche (11,350 sqm of a total 30,000 sqm), with the remaining space nearing completion. Amid increasing availability of modern premises, tenants are becoming more selective, and overall absorption remains moderate. This trend is particularly visible in Class B and Class C properties, where vacancy is rising. Prime asking rents in new developments stood at around 5.5 EUR/sqm; however, this is typically accompanied by incentive packages and flexible lease terms as landlords compete for tenants. An emerging trend is the tenant-driven demand for military risk clauses in leases, reflecting greater geopolitical risk awareness.

Source: Colliers Baltic Real Estate Market Snapshot | Q1 2026

Coworking

In Latvia, there is a wide variety of modern coworking spaces. One might think that all opportunities are concentrated in the capital – Riga. However, by exploring our interactive real estate map, you will see that modern coworking spaces are available across the entire territory of Latvia. Some of them even offer their services free of charge. More detailed information about the commercial terms of each coworking space can be found by browsing the map.

See the Riga coworking overview here:
Coworker Riga coworking map
Spaces Zunda Towers
Spaces Elemental
Skanste City Coworking

Contacts

Riga office

Address: Perses Street 2, Riga, Latvia, LV-1442
Web: www.investinlatvia.org
For more information: invest@liaa.gov.lv
For tailored advice contact our team of experts