Report on the Baltic real estate market for the 1st quarter of 2023As expected, the start of the year in Latvia has been quiet in terms
of investment activity with total investment volume reaching only
EUR 12 million in Q1 2023. As sellers are not yet ready to adjust their expectations, investors are shifting their focus to other markets where price correction has already occurred. As a result, in Riga, prime office and retail yields expanded to 5.8%
and 7.25% respectively.
The office market in Q1 2023 has brought some positive news to the Riga office market. In March, Swiss
healthcare giant Roche announced the opening in Riga of a new Services & Solutions centre, which will provide up to 200 new workplaces. Q1 2023 also saw completion of construction work on the first stage of Gustavs BC (GLA 12,400 sqm), which will house the entire SEB Global business services unit.
The retail development market remains limited in Riga with one
mixed-use project with retail space of 6,600 sqm under active
construction in Q1 2023. Nevertheless, the market recorded the start of construction work on the Depo DIY store at K. Ulmaņa Ave
near SC Spice.
Industrial market: Overall, around 51,000 sqm of leasable warehouse space was added to the market
during the quarter while more than 111,000 sqm remains under construction. Notable logistics and manufacturing companies are planning to expand.
You may view the full text of the report here: Baltic_Quarterly_Report_1Q_23.pdf
You may view full report here.