Latvia, strategically located in Northern Europe, offers an attractive environment for commercial real estate investment. As a member of the European Union and the Eurozone, Latvia provides seamless access to European markets, with well-developed transport links via ports, railways, and highways. Riga, the capital and largest city, serves as the country’s commercial hub, housing a majority of the office, retail, and industrial spaces.
The Latvian commercial property market has seen moderate but stable growth in recent years. Key sectors include office spaces, logistics and warehousing, retail centers, and hospitality properties. Demand for modern office facilities is particularly strong in Riga’s central business district (CBD) and adjacent areas, driven by the growth of the IT, finance, and shared service sectors. Prime office yields in Riga currently range from 6.0% to 7.0%, offering competitive returns in the Baltic region.
Industrial and logistics properties have gained increased investor interest, supported by Latvia’s role as a transport corridor between Western Europe, Russia, and Central Asia. The Port of Riga and the Rail Baltica project enhance the country’s logistics capabilities. Demand for high-quality warehousing and distribution centers has risen, especially with the expansion of e-commerce.
Retail property performance remains stable, with modern shopping centers and high street locations in Riga continuing to attract both international and local tenants. However, like other European markets, retail dynamics are shifting toward mixed-use developments and experiential shopping spaces.
The Latvian government supports foreign investment, offering a transparent legal framework and relatively low entry barriers. Property acquisition by non-residents is straightforward, contributing to growing international interest.
Overall, Latvia presents a balanced opportunity for commercial property investors, combining competitive yields, improving infrastructure, and strategic regional access within the EU framework.