Baltic Real Estate Market Overview: Q3 2025

The Baltic real estate market in Q3 2025 showed signs of cautious recovery, marked by increasing investment activity and shifting dynamics across sectors. Industrial and retail assets continue to dominate investor interest, particularly in Latvia, where total transaction volume already surpassed previous years, reaching about EUR 240 million.

Developers are increasingly focusing on renovation and redevelopment projects, with particular emphasis on converting older properties into residential use. In the office market, new Class A supply in Vilnius and Tallinn is driving relocations and competitive leasing strategies, while in Riga, limited premium space is pushing demand toward Class B premises. Retail trends point to stability, with various formats combining shopping, dining, and entertainment expanding, while the industrial segment across all three countries remains active but faces rising vacancy due to an expanding speculative pipeline. Overall, the Baltics remain a resilient, adaptive market, balancing cautious investor sentiment with long-term development confidence.

Read more: https://www.colliers.com/en-lv/research/q3-2025-baltic-real-estate-overview