Report on the Baltic real estate market for the 2nd quarter of 2023
In Q2 2023, investment volume in Latvia reached EUR 55 million,a better result than achieved in Q1 but still
below typical market figures (-60% YOY in 1HY 2023). Previously active
residential and industrial developers have not made any
acquisitions in Q2. As ECB continues to raise interest rates, it is
clear that yields below 6% are not reasonable.
Various small-scale new and renovated office buildings were put
into operation in Riga during Q2 2023, adding 11,790 sqm of leasable
office space.
With Baltic Re starting with the Daugavas Skats project, 145,740 sqm of office space remain under construction in Riga. Around 60% of the projects under construction are planned to be delivered by year-end.
The retail development market remains low with Preses Nams retail
part and a DEPO big-box project near SC Spice under construction. However, grocery chains remained active in Q2 with Lidl opening 2 stores at Kalnciema and Sporta St, while RImi
opened in Pinki.
Industrial market. Two large scale projects were commissioned in Riga
Region: VGP Park Tiraines (28,000 sqm; B-t-S project) in Riga, and the last stage of Rumbula Logistics Park (25,000 sqm). Demand remains
high for small size premises and premises with specific
solutions which are currently not available on the market. As
tenants are not willing to wait for new smaller units, relocation
to non-professional objects has therefore increased.
You may view the full text of the report here:
Baltic_Quarterly_Report_2Q_23.pdf
You may view Colliers | Baltic Real Estate Market Overview | Q2 2023