Report on the Baltic real estate market for the 4th quarter of 2024
Overall, 2024 was a quiet year for real estate investments in Latvia, the worst year over the 10 years.However, the year ended positively when Nuve Partners announced the acquisition of 11 grocery stores across Latvia leased to the Rimi chain.
Additionally, there are indications that with a stabilizing financing market, owners and investors are reconsidering entering the investment market in Latvia.
Office market: approximately 41,400 sqm of leasable office space was added to the Riga office stock in 2024. The second half of the year saw the start of construction work on two Class B office complexes - expanding the current volume of Barons Kvartals and Mukusalas Biznesa Centrs.
Overall, approximately 30,000 sqm of new office space is expected to enter the market in 2025.
Retail market: the pace of development in the Latvian market remained low in 2024, seeing only the DEPO DIY store in Marupe entering the market and Teika Plaza changing the concept. Still, the overall sentiment is positive with multiple foreign brands considering expansion to Riga. Thus, more new entrants can be expected a year or two from now on.
Industrial market: the first stage of the industrial complex Mārupes Parks, developed by Piche, was commissioned in Q4 2024, adding 12,400 sqm to the stock in the Riga region. Completion of other projects, initially expected in Q4, appears to be postponed to early 2025.
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