Investments, Latvia, Markets and Companies, Real Estate

Colliers head said that in the first three quarters the real estate transactions reached about EUR 700 million, therefore the annual forecast for EUR 1 billion, most probably, will come true. Latvia’s three-quarter results reach EUR 79 million.

"Several transactions are in process, therefore Latvia might step over the EUR 100 million. Still, we will not surpass Lithuania or Estonia. It should be reminded though that there were more projects developed in Estonia and Lithuania after the crisis, therefore there is more to sell. Latvia is still selling projects built before the crisis, and there is a limited number of new projects. Another issue, we depend on large transactions with shopping malls. Last year there were transactions with Riga Plaza and Domina, the year before that with Alfa, Mols and Dole. One such transaction already ensures a large sum. There were no such large transactions this year," he said.

The biggest difference across the Baltic markets is related with the fact that the Estonian and Lithuanian markets recovered from the crisis sooner. Latvia suffered more during the crisis than Estonia, while Lithuania managed to attract more business than Latvia. As a result, Lithuania has already built more than 20 new office buildings with the total floor space of more than 250,000 square meters, while Latvia has developed just a few new projects.

"The situation in all the three Baltic states is good now, but the neighboring countries show a steeper dynamics," said Kairans.