Baltic Real Estate Market Overview: Q1 2025

The Baltic real estate market began 2025 with divergent activity across segments. While investment volumes softened in Estonia following a strong 2024 and returned to the long-term average in Latvia, Lithuania stood out with a surge in domestic-driven deals, totaling nearly EUR 150 million.

In the office sector, development pipelines remain active in Tallinn and Riga, though tenant demand is cautious, with Vilnius showing growing vacancy and increased lease negotiation pressure. The retail market held steady across all three capitals, with low vacancy, stable rents, and expanding demand from discounters, fitness operators, and F&B brands.

Meanwhile, the industrial sector remains dynamic, with robust development in Tallinn and Riga, and improving momentum in Vilnius — though stock-office vacancy is rising in some areas due to relocations and supply influx.

Read more: https://www.colliers.com/en-lv/research/q1-2025-baltic-real-estate-overview