Baltic real estate market overview: Q4 2024

Investment activity is expected to grow in Latvia and Lithuania following a period of postponed decisions, moderate transaction activity is foreseen in Estonia.

Developers and owners of Class A premises will likely compete through favourable fit-out offerings rather than higher prices. Refurbishment and/or conversions of Class B office buildings to alternative concepts will remain increasingly popular.

The retail segment is not forecasted to see major new entrants, although several long-awaited retailers have indicated that they would be ready to expand to Baltic region within 2-3 years.

As industrial market is largely led by local demand and continues to struggle, vacancy is expected to grow in Estonia and Latvia, adding even more pressure on rent rates. In Lithuania, vacancy rates which rose at the end of 2024, are anticipated to gradually decline due to modest warehouse supply.

Get more insights in our latest Q4 2024 report: https://www.colliers.com/en-lv/research/q4-2024-baltic-real-estate-overview.