Real estate for your business

Real estate market remains active in Latvia. Office stock experienced the largest increase in the last 10 years, coworkings witnessed a rapid bloom and the warehouse and industrial property is keeping up with demanding and delivering modern energoefficient premises. As well as the greenfields keep in a variety of choice and municpalities and special economic zones are ready to offer incentives and real estate rebates for their owned land properties.

Offices 

Total stock: 704 000 sqm
Completions: 52 300 sqm
Take up: 27 000 sqm
Vacancy rate: 9.1%

2019 marked the highest construction activity since 2009. In total, 7 office buildings were commissioned adding 53 400 sqm of modern office premises to the office stock.

Several BREEAM and LEED certified office projects have announced their plans to start construction in 2020 (Verde, Elemental Skanste, the second phase of Business Garden Rīga and Pine) – with this expected activity ca.100,000 sqm of modern office premises will be delivered by 2023.

Take-up activity reached a volume of over 27,000 sqm or 16% increase in comparison to 2018. 

The vacancy increased significantly in 2019. It has increased more than twice from 3.9% in January to 9.1% in December 2019. 

Rent rates remain stable: 14-17 EUR/sqm/month for A class, 8-14.5 EUR/sqm/month for B class.

Source: 

Industrial

Total stock: 1 110 000 sqm
Pipeline: 215 000 sqm
Vacancy rate: 1.5%

In 2019, development activity in the industrial and warehouse market remained high, with several large-scale projects commissioned and more than 200,000 sqm under construction at the end of the year.

Higher activity in industrial development remains within Riga city, and that is mostly due to demographic reasons. Many recently commissioned building and projects under construction stand within two locations – around Riga International Airport and Dreilini. Besides Riga, also other territories in Latvia experience development activity, for example, Ventspils Freeport and Liepāja Karosta industrial territories.

The vacancy in Riga and Riga region during the year remained low; nevertheless, speculative industrial space within Riga experienced a slight vacancy increase. 

Rent rates remained stable: 4.3-5.0 EUR/sqm/month for class A, 2.5-4 EUR/sqm/month for class B. Nevertheless, the difference between rent rates in Riga and regions remains.

Source: Colliers International

SAM Territories and Territories for Business Development

These territories are specially designated areas for industrial development with an already accesible infrastructure, which are being implemented 9 cities and 69 municipalities in Latvia with an aim to create new jobs and attract investment. Most of them are SAM territories. With the support of EU funds these land plots are being developed to a level where the comersant has the opportunity to focus on business growth instead of investing in the basic infrastructure - among others, illuminated access roads, electricity supply, water supply, gas supply, sewarage line, secured fenced territory, detail development plan (these characteristics depend on landplot by landplot). 

Coworking

In Latvia there is a variety of modern coworking spaces. One might think that all opporrtunities are concentrated in the capital – Riga. But if you take a look at our interactive real estate map, you can find Latvia’s territory covered by modern coworking spaces. Some of them offer their services free of charge. You can find a more detailed information about the commercial terms of each coworking space by browsing through the map.

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