The capital's city council regularly commissions an assessment of the Riga real estate market. It was evaluated again as part of the updated Long-Term Development Program for Riga until 2030.
“Compared to Tallinn and Vilnius, housing in Riga is more affordable, which contributes to higher sales volumes; in turn, rental apartments dominate in the capitals of neighboring countries,” the latest report states.
Meanwhile, there is a noticeable significant reduction in the number of properties compared to the previous five-year period. Thus, while 149 multi-apartment building projects were implemented from 2020 to 2025, only 45 have been announced for 2025 to 2028. In the preceding five years, only 5 houses for long-term rental were built in Riga, and another 5 have been announced for the next three years.
Against this backdrop, real estate projects stand out, demonstrating with their ambition that while the situation in Latvia as a whole is stagnating, some market participants have money to spare. The document highlights: Riga Waterfront (Andrej sala); Valterciems (Dreiliņi); as well as the development of the 3rd transverse line in Čiekurkalns.
The office segment in Riga has long been criticized for a lack of Class A spaces. However, now there has been a different imbalance – euro-standard offices have been built, but there is no one to rent them, so the rental business is facing the challenge that “it does not always provide sufficient profitability for developers.”
The saturation of office buildings is most characteristic of the Center and the Skanstes area. “At the same time, significant secondary centers have also emerged – the Mukusalas Business Center, the new VEF/Teika with the Gustavs and Jaunā Teika projects, Barona kvartāls, and Skanstes City along with Duntes biroji.”
The most significant planned projects mentioned in the document by the city council are: Verde (4th phase) on Skanstes Street; Krasta City in the Latgale suburb; Sporta 2 Kvartāls, adjacent to the Skanstes area.
Leave a comment