According to a recent study conducted by the international real estate consultancy company Re&Solution, the Latvian, Lithuanian and Estonian real estate market is capable of attracting the interest of investors, while local market participants have to be ready for compromises and constructive cooperation.
Mr. Andzejs Neguliners, Head of Re&Solution Latvia, comments: "After a long and steady stimulating growth, the real estate market in Latvia has experienced a change of market trends and circumstances that have been unexpected, even sudden, for many market participants, and as a result the market even looks perplexed. But this is a time when it is possible to take decisions and initiate the implementation of new projects and conclude new transactions in a more pragmatic and weighed manner. The real estate market, like other markets, is developing cyclically, and this market depending on the location, is subject to certain laws which must be taken into account."
Retail market
- it is the best time for international retail chains to enter the market, more quickly and with a larger network at much lower rental prices than previously, selecting best locations and lowest rent rates, and thus occupying strategic places;
- retail space owners have become more flexible and ready to offer better tenancy terms and conditions and beneficial payment and contractual terms and conditions;
- in sight of the present economical situation, decrease of retail turnover will continue;
- success will be obtained by those owners of commercial premises, who will be able to adapt to existing requirements of retailers and changing habits and income of buyers, thus creaming off more successful commercial sites from the less successful.
Office market
- projects that are in final stage of development will be finished, other developments will be postponed for uncertain period of time;
- tenants are evaluating existing rented space with a purpose to optimize their costs and, therefore, are seeking for more attractive conditions
