Real estate for your business

The investment market in Latvia remains inactive with total investment volume almost reaching EUR 90 million in the first three quarters of 2024. The largest deal of Q3 2024 included Grinvest divestment of current SEB HQ - Class B office building on the outskirts of Riga was acquired by Booking Group & Chemispec, with the companies expected to use it as their own office once SEB relocates next year. There were no other notable sales transactions during the quarter. 

Offices (2024 Q3)

No large-scale office projects entered the Riga market during Q3 2024. However, Capitalica acquired a land plot next to the existing Verde project with the aim of developing the third stage of the project. Other developers who would be willing to initiate construction continue to look for an anchor tenant. Take-up activity remains at around 12,000 sqm per quarter, reaching a total of over 37,000 sqm so far in 2024. Even though impact from newcomers on take-up is still minor, there is an increase in demand thanks to activities of Live Riga and LIAA. In Q3 2024, Vastint’s new Magdelena Quarter offices managed to sign their first tenant, securing the largest take-up deal of 2024 - ATEA leased more than 4,000 sqm. 

While most of the activity is seen in Class A stock, it is observed that some tenants prefer premises in Class B buildings with finished fit-out, which require minimum investments and allow for a shorter moving-in period. Decreasing vacancy in recently completed buildings and new construction at higher cost result in increasing upward pressure on asking rates.

Industrial (2024 Q3)

Development market in Latvia remains active: Piche and Sirin continue to develop their parks, and both companies are also expanding their land portfolios. There is also some built-to-suit development underway; however, several companies have postponed plans to relocate or expand. As Riga industrial market is driven by local demand, with the stagnant economic development in Latvia, the Riga industrial property market is struggling. There is a notable hidden vacancy on the market, at least as high as current total vacancy. In recent years, most companies have relocated to new premises and signed unbreakable leases, which in the current market conditions means that there is a hidden vacancy – space that these tenants are willing to sublet. With a strong tenant market, negotiation power is in hand of tenants and in many cases, landlords are therefore willing to offer better terms than they were a year ago. In addition, landlords are ready to renew leases at current market rents rather than at the accumulated rental level to avoid a risk of potential vacancy.

Source: Colliers Baltic Real Estate Market Snapshot | Q3 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