Riga Office Outlook, 2025 H1 -

Riga Office Market Outlook 2025 H1

The Riga office market entered 2025 with signs of renewed momentum following several years of subdued activity. Strong new deliveries, improving pre-leasing figures, and stabilising vacancy levels indicate that the market is gradually reawakening, supported by Latvia’s economic recovery and rising tenant expectations for modern, high-quality space.

Riga in H1 2025 delivered almost 31,000 sqm of new office space, modernising the city’s landscape and bringing total stock to 920,600 sqm. Key completions include two new Magdalenas kvartāls buildings (9,470 sqm), the 12,000 sqm Satekles Biznesa Centrs anchored by SEB, and several smaller additions such as the Kr. Barona 30A project. This wave of new supply highlights a growing demand for contemporary A-class premises and reflects increasing tenant migration from older stock.

Take-up in H1 reached 28,100 sqm, 30% higher than the same period last year, driven largely by major pre-leases: SEB (11,000 sqm), ATEA (3,900 sqm), and Sorainen (1,800 sqm). Momentum was also visible in B-class assets, where renovated and repositioned buildings are capturing demand through competitive pricing and flexible leasing strategies.

Vacancy levels, long considered Riga’s biggest challenge, continue to improve. A-class vacancy has eased to around 10.5%, while B-class stands at 11%, supported by higher-quality redevelopments and the growing popularity of ready-to-move-in office solutions. Still, new development remains limited: beyond the expected Preses Nams extension, there are few large-scale projects in the 2025–2026 pipeline due to construction costs and insufficient rent levels to justify new speculative starts.

Despite these constraints, the market is clearly shifting. Modern, ESG-aligned buildings are attracting leading companies, renovation of older properties is accelerating, and tenants are prioritising workplace quality and efficiency. As 2025 progresses, Riga’s office market is expected to continue stabilising, with the strongest activity concentrated in flexible, sustainable, and well-located A-class projects.