RIGA, Jan 23 (LETA) - The proportion of local investments in Latvia's commercial real estate shrank last year to just 9 percent from 43 percent in 2018, Colliers International (Colliers) consultancy informed LETA.

"The total value of real estate transactions in the Baltics exceeded EUR 1 billion last year, which is a fairly good result. The largest amount of transactions was recorded in Lithuania and the smallest in Estonia. Latvia stood out against its two neighbor countries with several large transactions in development land in Riga and an arrival of new investors," said Colliers partner in the Baltic region Deniss Kairans.

Colliers indicated that the slow development of cash flow properties in recent years has caused investors to consider buying not only finished properties but also real estate with a development potential. The 2019 list of largest real estate transactions includes not only the usual cash flow objects in Riga and Riga Region but also three development land plots.

The amount of investments made in cash flow properties in 2019 was similar to those made a year before and was worth around EUR 300 million, with transactions in office and commercial space accounting for the largest part of that amount (75 percent).

Industrial cash flow properties have been attracting increased attention of investors. Two transactions in such properties ranked among the Top-ten of the years's largest deals. Two more transactions in this segment have already been made in 2020.

In 2019, investors activity bough up land for construction of office and commercial buildings, as well as residential projects, Colliers said.

Investors from Scandinavia (mostly funds) provided 44 percent of total investments, as the share of international investors' transactions grew to 28 percent, largely thanks to the arrival of new investors. While investors from neighbor countries purchased development land, local developers bought mainly buildings.

The largest real estate deal of 2019 was the sale of Galerija Centrs in Riga. Linstow Center Management sold the shopping center to Baltic Horizon Fund for EUR 75 million.

The second largest transaction was the sale of offices at 21, Brivibas Boulevard, 12-14 Kalku Street and 15 Kalku Street. Baltic RE Group sold the properties to VIG Fund for an undisclosed price.

The sale of the Luminor office was the third largest real estate deal. The property was sold to Colonna. The price of that transaction has not been disclosed either.

© Pakistan Press International, source Asianet-Pakistan