Report on the Baltic real estate market for the 1st quarter of 2024
In Q1 2024, investment volume in commercial real estate in Latviaslightly exceeded EUR 40 million. There were few notable,
however, small-scale transactions. Large-scale deals faced challenges as buyer yield expectations continued exceeding sellers' ones. Grocery
operators dominated end-user and development transactions with LIDL acquiring land on Lāčplēša St. for EUR 4.5 million and Madara89 securing five properties for EUR 5.6 million in total.
Office market: 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. Currently, 69,300 sqm of office leasable space remains under construction, of which almost half is set to be
completed by year-end.
Retail market: no new notable projects were announced or added to the Riga market in Q1 2024. Grocery operators, especially small local
brands, continue to actively acquire land plots and properties, mostly in regions. Larger grocery chains continue to open and plan new stores. New openings expected in April include Douglas and Komforts store in SC Saga and IKEA branch store in Liepaja.
Industrial market: 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. Demand for newly built industrial and warehouse premises remains high with new projects
reaching high pre-lease figures.
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