Investments, Latvia, Real Estate

“We saw the beginning that activity already last year, and hopefully, there will be new projects arriving on the market. We are also working hard to bring new players – both investors and tenants – to the market. I believe, therefore, that we will be hearing new names across all sectors,” Kairans said.

The Colliers head also noted the need to take a broader look at the perspectives provided by global markets, as companies relocate, seeking better countries for opening their offices and service centers.

“Lithuania is a good example of seizing these opportunities thanks to an educated workforce, civilized country and smaller costs. Latvia, too, has seen the arrival of companies – perhaps not so high-profile and not so large, but they have arrived. Now, we have to watch for opportunities provided, for instance, by Brexit,” Kairans said.

The Colliers head also indicated that Latvia’s tax system is changing and each realtor is faced with the dilemma – whether to sell the property this or next year. “We feel that there are a number of deals that will be “pushed” into next year because the tax reforms,” Kairans said.

Asked if these are large transactions, Kairans said that there are deals worth more than EUR 20 million. “Two or three such deals might be closed by the end of this year. If not, they will be closed next year. So, we cannot say that there is a complete standstill on the market. The number of transactions is likely to rise next year because on the whole this time is convenient for selling property,” Kairans said, adding that it is still difficult to make any predictions about investment.