KEY POINTS:

 

Total stock is expected to grow by 76,900 sq m in 2019.

On the first half of the year, two new projects were completed. Class B1 offices Akropole and Telegraph were commissioned in March and May respectively.

The vacancy rate is steadily increasing. Currently, it stands at 5% or 1 p.p. increase y/y.

The largest projects, such as Z-Towers, Jauna Teika, and Business Garden Rīga are expected to be delivered in the second half of the year.

Rent rates remains stable: 14.0–17.0 EUR/sq m/month for class A, 8.0–14.5 EUR/sq m/month for class B.

Energy efficiency in focus: BREEAM/LEED becomes a new norm.

Prime office yields stay put at 6.25%. Despite historic low a further yield compression is expected this year.

GDP growth moderated 1.6 p.p. to 3.2% (Q1 2019) y/y.

Wage growth slowed down and was 7.8 % or EUR 75 y/y (Q1 2019).

Building construction volumes increased by 4.8% (April, 2019) y/y.

Inflation reached 3% (June , 2019) y/y.