18-04-2024
According to the "Baltic Real Estate Market Overview" by Colliers, investments in Latvian commercial real estate in the first quarter of 2024 reached €42 million. This figure is higher than in Lithuania (€27 million) but significantly lower than in Estonia (€250 million).
Office Segment
As of the beginning of the second quarter of 2024, approximately 69,300 sq. m of new office spaces were under construction in Latvia. It is expected that half of these will be operational by the end of the year, significantly exceeding the potential demand, which is unlikely to surpass 10,000 sq. m.
The vacancy rate in class A and B1 office complexes in Riga exceeds 21%. For comparison, in Tallinn, this rate is 10.3%, and in Vilnius, it is 7.9%.
Rental rates in Riga for class A complexes range from €15.5 to €18 per sq. m per month, and for class B1, from €10 to €15 per sq. m per month. An increase in rental rates in the near future is unlikely due to the high level of vacant spaces.
Retail Spaces
The vacancy rate in Riga's shopping centers is the highest among the Baltic capitals at 5.2%. In Vilnius, this rate is 2.7%, and in Tallinn, it is 2.2%.
Demand for retail space in Latvia is lower than in other Baltic countries, and rental rates are also lower. In leading shopping centers in Riga, premises can be rented for prices ranging from €23 to €40 per sq. m per month.
Industrial Spaces
This niche is currently experiencing a period of rapid development in Latvia: about 124,000 sq. m of such spaces are under construction. The demand is high, and many projects secure their future tenants even during the construction phase. Only 2.5% of industrial spaces are vacant, and rental rates for them range from €4.5 to €5.5 per sq. m per month.
Mercury Group has access to the best commercial spaces in Riga, including those from a private database. Contact us, and we will promptly select the best commercial properties for your company according to your preferences and budget.
