Baltic Real Estate Market Overview: Q4 2025

Investment volumes in Latvia and Estonia are expected to remain around the long-term average of EUR 300 million, driven mainly by local capital, strategic acquisitions, and end-user deals, while foreign investors continue to act primarily as sellers. Larger transactions are likely to be structured as club deals, with several major investments expected to close in early 2026.

The real estate market is moving toward greater integration of traditional segments, with hybrid retail, office, and lifestyle concepts gaining traction. Aging and underperforming assets are expected to accelerate reconstruction and repositioning activity, in some cases leading to conversion into new asset classes.

Market sentiment is forecast to gradually improve amid stabilising economic conditions, easing inflation, and more favourable financing, supporting a cautious return of new supply and strengthening tenant demand. In Lithuania, pension reform is expected to stimulate retail and residential markets in 2026, while demand in the logistics sector is likely to remain subdued due to geopolitical uncertainty, operational constraints, and overall market volatility.

Explore all the latest market trends in our full Q4 2025 report.