Report on the Baltic real estate market for the 2nd quarter of 2024
In Q2 2024, investment volume in Latvia just stood at around EUR 20 million, driven by the acquisition of the SC Dauga in Ogre by Maxima, anchor tenant, for EUR 12.4 million, while other deals did not even exceed the EUR 2 million mark.Several properties offered at an auction by state and municipality reached notable interest from buyers.
Owners of prime properties take time to improve the assets and wait for more compelling indications from ECB to cut rates.
Office market: the Riga office market saw the completion of the Verde office complex (Class A; the second building put into operation), adding 13,700 sqm of GLA. More than 20,200 sqm of
office space currently under construction is set to be completed by the end of the year. The growing interest in Class B offices could be observed as tenants look to move from non-competitive stock to more energy-efficient locations.
Retail market: Q2 2024 ended with the commissioning of the DEPO big-box store – one of the few announced retail development projects in Riga. While there have been no new entrances, brands that already present in the market is actively expanding. Overall, the focus of brands that are already present in the market is shifting from Riga to regions.
Industrial market: No new projects were commissioned in Riga region, however, development volume remains stable with around 69,000 sqm under construction with completion scheduled for 2024. Developers are ready to start construction work only if there is a strong demand (new tenants) or the current project is at least 50% pre-leased.
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