Real estate for your business

Real estate market remains active in Latvia. In Riga, the year commenced with three additions - Novira Plaza (Class A project in the city centre), Arcada (Class B) in Purvciems district and one building (Class B) in the Skanstes City project – added to the stock.

Offices (2024 Q1)

Currently, 69,300 sqm of office leasable space remains under construction, of which almost half is set to be completed by year-end. Take-up activity remains in line with expectations, totalling almost 10,000 sqm. Prospective tenants prioritize new, Class A buildings, but options within available projects are becoming limited as the most attractive spaces fill up. With new buildings entering the market, total vacancy trends upwards, reaching 21% in the speculative stock. ESG standards drive tenants’ choice (especially larger foreign companies) toward certified buildings, prompting developers to prioritize energy efficiency and reduced carbon footprints. As the office segment remains tenant-led, growth in the rental market remain slow and "good offers" tend to persist.

Industrial (2024 Q1)

Green Park (stage IV) and BTS Pet Baltija (stage I) by Piche were commissioned during Q1 2024, increasing industrial stock in Riga region by GLA 24,600 sqm. The development market remains active with around 124,000 sqm under construction. In Q1 2024, Sirin transaction in Airport area was cancelled by court decision, notably reducing (by 180,000 sqm) the expected industrial pipeline in the area. Demand for newly built industrial and warehouse premises remains high with new projects reaching high pre-lease figures. As a result, vacancy levels are low and continue to decrease. Rent rates in remain stable, averaging 4.5-5.5 EUR/sqm. Stock office market continues to record a slow development. At the end of the quarter, Hepsor announced development of its third stock-office project Veidama Kvartals in Ganibu Dambis area. Stock-office rent rates currently reach the level of Class B2 office premises rather than being closer to industrial rent levels.

Source: Colliers Baltic Real Estate Market Snapshot | Q1 2024

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.

See coworking spaces here.

Contacts

Riga office

Address: 2 Perses Street, Riga, Latvia, LV-1442
Web: www.investinlatvia.org
For more information: invest@liaa.gov.lv
Phone: +371 25710113
For tailored advice contact our team of experts