Report on the Baltic real estate market for the 3rd quarter of 2024
In Q3 2024, investment volume in Latvia remained inactive. The largest deal 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.Additionally, after two years of landlord unwillingness to sell, several large properties are entering the market and attracting interest from potential buyers.
Office market: 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. Take-up activity remains at around 12,000 sqm per quarter, reaching a total of over 37,000 sqm so far in 2024.
Retail market: at the end of August 2024, already third department store with a new concept reopened in Riga - former Elkor Plaza reopened as the neighborhood shopping center Teika Plaza. Three new brands entered the Latvian market: JD Sports opened in SC Akropole Alfa, Boggi Milano opened in SC Spice and Dan John opened in SC Akropole Alfa and SC Jelgavas Pasāža.
Industrial market: development market remains active - Piche and Sirin continue to develop their parks and expand their land portfolios. However, as Riga industrial market is driven mostly by local demand, with the stagnant economic development in Latvia, the Riga industrial property market is struggling.
You may view the full text of the report here