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Real estate market trends by CBRE

Nov 07

CBRE offers Riga Marketview for 3rd quarter that includes summary of real estate market trends:

  • A strong revival in investment, exports and private consumption lifted GDP growth by 5.8% in Q3 when compared to the corresponding period of 2016, and by 1.5% if compared with the previous quarter.
  • Inflation was at the level of 2.9% in Q3. According to Swedbank prognoses Latvia's economy is expected to expand up to 5% in 2017, however together with inflation, nominally in euro terms, the economy could grow at closer to 8% this year.
  • The unemployment rate in Latvia dropped from 9.4 % in Q1 2017 to 8.9 % in Q2.
  • Modern office stock in Riga currently stands at the level of 611,600 sqm, showing an increase by 0.6% in the third quarter of 2017.
  • An additional 3,600 sqm of office space was delivered at Mukusalas 29/29b and is fully leased out.
  • Overall vacancy for existing modern offices has remained at the same level, showing a slight decline to 3.4%.
  • The prime rent level has remainedstable at 16.5 EUR/sqm/month and the prime yield has decreased slightly to 6.75% (drop by 50 bp y-o-y).
  • Investment in the Riga office sector for the three quarters of 2017 reached € 58.4 million, representing a decrease of 29.8% when compared with the same period in 2016.
  • Investment in the office sector comprised a share of 51.4% of all investment in Latvia during the first nine months of 2017, placing the retail sector in second position with a 35.1% share.

Click here to read the entire Marketview.

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Dace Silava-Tomsone, Managing Partner, COBALT