Real estate development

Riga is a good location for almost every sector company with its specific real estate requirements. It can provide location choices for business and living needs.

Riga is a major driving force for the growth of Latvia and the Baltic’s with an extremely high potential to become a future platform for smart and creative development.

In general, land prices in Riga and its vicinity remained stable in 2020, except for land for commercial use in Riga neighborhoods, where prices increased by 5-10% on average. 

Prices for plots for residential development (apartment buildings) are generally in the range of €50–€300 per sqm in Riga neighborhoods, and for mixed commercial and residential development €300–€1,000 per sqm in central Riga areas.

Commercial land, near highways, ranges from €15 to €20 per sqm, with commercial land in Riga neighborhoods €20–€80 per sqm. 

  • Nearly 1 million sqm of affordable A and B calls office space by 2023
  • The average vacancy rate for A and B-class offices in Riga is 12%. 
  • Average A-class office vacancy rate in Riga - 6% 
  • Average A-class office monthly rent rates per sqm in Riga – 13-17 euro
  • Average B-class office monthly rent rates per sqm in Riga – 8-13 euros
  • 800 000 sqm A and B class office stock in Riga
  • 1500+ coworking stations
  • 170 000 sqm development pipeline until 2023

Key Benefits 

  • The most affordable housing and offices in the Baltics
  • The lowest A-class office rent rates across Northern and Central European capitals
  • the largest and the only Baltic metropolis with over 1 million inhabitants
  • Superior connectivity in the Baltics with 100+ direct flights from Riga
  • Impulse for economics
  • Smart region
  • Investment environment
  • Metropolis of education
  • Geographical hotspot

Main subsectors

Office, Retail, Industrial, Residential (read more)

Investment market

The market is dominated by «yield-driven» Western alternative investment vehicles, targeting dry-structured prime properties at good locations.

The yield compression has occasionally touched a new-low threshold at 5.0-6.5% for high-quality assets with stable cash flow.
Due to the tightening bank lending conditions, the market is experiencing an extensive learning and adaptation curve, which is expected to translate in bolstered investment activity in the years to come.

Key players are Nordic and Baltic investors. All the existing funds continue enlarging their portfolios, at the same time successfully implementing exits of their first funds.

Russia&CIS players are massively forced out of competition since 2018.

 

Key Players

LNK Properties, Colliers, CBRE, Ober-House, Latio, City24, Arcoreal

Recent Developments and New Projects:

Office: 

Jaunā Teika, Z-Towers, Orgio One, Riverside Offices, Verde, Preses nams, Business Garden Riga, Novira Plaza Riga, Elemental Skanste, The Pine, Kimmel quarter

Industrial: 

LIDL, RIMI LOGISTIC CENTRE, DIENVIDU VĀRTI (SOUTHERN GATEWAY), A6, DHL, Green Park, Sirin Locistic Park, VILIA INDUSTRIES LUBANA PARK, STOKOFISS U30

Residential:

Hoft, LOFTS & ROSEGOLD, MERKS VIESTURDĀRZS, MERKS MEŽPILSĒTA, KRASTA RAJONA TREND, FJORDI, PAGALMS 2, MEŽAPARKA REZIDENCES, GREEN CITY, TREBŪ HOME, DIVI KRASTI, IRIS SHAMPETERIS, STRĒLNIEKU 4B, ANNAS PARKS, SAFRĀNS, HOFFMANN REZIDENC

Links:

Real Estate Market Report

Invest in Latvia I Riga

Download

Riga Office Market Snapshot-Q1-2021
PDF

If you need an assistance

We are your first point of contact if you're interested in Riga as a place for investment, business development, or film production. We will assist and help with the right people and organizations without added cost. Get in touch and let's make things happen.

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