29-01-2014
In 2013 total investments in commercial real estate in Latvia amounted to more than 331.5 million euros, which is almost double compared to 176 million euros invested in 2012...
These investment figures include acquisitions of commercial estate, reconstruction objects and land plots for development with a sales price over 0.4 million euros.
This increase of investments in commercial real estate was encouraged by the overall development of the Baltic region, the recovery of the Latvian economy and investors’ interest in diversifying estate portfolios. Real estate market in Latvia started to enjoy the positive effects associated with joining the euro zone as early as 2013. Similarly to Estonia, in Latvia investor activity was already increasing one year before the physical introduction of the euro, when the positive decision regarding joining the euro zone was adopted. Therefore, trends in 2014 should follow the same pattern as in 2013. However, real estate consulting companies do not forecast a sharp increase in the number of transactions.
Commercial real estate with cash flow is actively purchased by specialized real estate funds and asset management companies with resources originating mainly in the Nordic Countries, as well as Russia. Both, Domestic investors and private investors from CIS countries supported activity by buying real estates from bank portfolios; these were mainly objects requiring reconstruction or completion of construction works.
BC, Riga| 29.01.2014.
