globe retail outlook data

 

  • Retail
  • Office
  • Log In
https://smg.cbre.com/images/default-source/Retail/city-images/default.jpg?sfvrsn=b1d20d96_2

Latvia

At the beginning of 2017 modern retail space stock accounted to almost 680,000 sqm of GLA or 348 sq m/'000 capita encompassing such retail formats as shopping centres, department stores and hypermarket schemes across Latvia.


Shopping centre stock of shopping centres with GLA above 10,000 sq m in Latvia remained unchanged during 2016 and at the beginning of 2017 was 470,800 sq m or 240 sq m/'000 capita. Also there have been no medium/large scale shopping centres delivered in Latvia during the last five years in Latvia, only several big box projects were completed in Cash&Carry and DIY segment; hypermarkets and supermarkets also continued to expand into new locations or provided reconstruction for existing locations.


The biggest concentration of the retail space is in the capital city Riga. Vacancy rates in leading shopping centres are low. Shopping centres are focusing on attracting strong international brands thus improving their tenant mix. That is resulting in some of the shopping centres planning extensions or full refurbishments/partial reconstructions in the coming years. Furthermore, the pipeline of new large scale retail schemes has become more active in terms of engaging anchor tenants and starting construction. The awaited Akropole Riga slowly entered the construction phase during Q4 2016. The shopping centre could be finished in H1 2019, adding more than 60,000 sq m of new leasable retail space.


During H2 2017 the expansion of a number of existing projects will be started:
1) SC ALFA expansion by Multi Corporation Group will start in H1 2017. GLA for this expansion is 11,150 sq m, providing a total GLA of 58,950 sq m after the expansion;
2) ORIGO expansion by Linstow AB could be finished in autumn 2019, thus increasing the leasable retail stock by an additional 16,500 sq m.

Expansion further into the Baltic region has been started by IKEA with the  acquisition of a development site in Latvia. The total area of the building is estimated at 34,500 sq m and could be delivered into the market by the end of 2019. German grocery chain Lidl also have plans to enter Latvia in next 2-3 years.


Some existing shopping centres are currently undergoing concept re-planning and are adjusting retail space to other functions. Shopping centres will continue to work on re-development of retail space occupied by PRISMA hypermarkets after the official announcements about its exit from the Lithuania and Latvia markets.


Riga is missing the High Street location, providing only some successful prime street retail areas with active pedestrian flow. Prime street retail market activity in Riga remained stable during H2 2016, showing a flat downturn trend for rental rates in secondary locations. In Riga currently there are two prime retail destinations: the Old Town's main arteries with high pedestrian flow, and in recent years becoming more popular Terbatas District including Elizabetes, Tērbatas, Dzirnavu and part of Brīvības streets. Over the last two years the notable tenant mix has been enriched by well-known international fashion brand names.


In line with the sharp decline in 2015 a tendency to decline during H1 2016 was noticed for rent prices in secondary locations where the pedestrian flow, space configuration or adjacent tenant mix does not meet the desired requirements of potential tenants. In H1 2016 the average prime rent rates in Riga down-town were 30 - 35 EUR/sq m/month.


There is a big potential for Riga High Street retail, as currently the city is undertaking developments; improving the pedestrian areas and public space. Private investors are reconstructing new buildings and improving facades; all those above mentioned factors will facilitate the entrance of strong retailers thus encouraging shoppers. Prime street retail is expanding by creating strong clusters and we anticipate this trend to continue in

Our Top Tip For
New Arrivals

Riga is the largest of the cities in the Baltic countries. Demand for quality, trendiness and comfort is increasing. Consumer spending in Latvia is growing. Do not hesitate to enter the market where quality is appreciated and plays an important role. Locals are open and eager to try new things.

Currency

Euro (EUR)
EUR €1
USD $1.23
GBP £0.88

Language

Latvian
Hello: Labdien
Thank you: Paldies

International Dialing Code

+371

Time Zone

GMT + 2h

Cost of a Pair of Jeans

70.00 EUR

Cost of a Cup of Coffee

2.40 EUR

Cities in Latvia

Contact Us

SANTA ROZENKOPFA
Mukusalas iela 71, Riga, Latvia, LV-1004
+371 26533393 | Santa.Rozenkopfa@cbre.lv