Today, Latvijas Banka hosted the Issuers' Breakfast titled "Capital Meets Property", bringing together professionals and policymakers from the real estate, capital market, and investment sectors. The event aimed to promote dialogue on the current challenges and future opportunities in real estate financing and investment in Latvia and the Baltic, Central European, and Eastern European regions. The discussion focused on the impact of the macroeconomic environment on the real estate market, as well as the role of capital market instruments, particularly real estate investment trusts (REITs), in ensuring sustainable growth and investment attraction.
The event was opened by Santa Purgaile, Deputy Governor of Latvijas Banka, and Tomas Kairys, Head of Baltic States at the European Bank for Reconstruction and Development.
Santa PurgaileDeputy Governor of Latvijas Banka"A sustainable development of the Latvian capital market requires innovative solutions, which not only attract foreign investors but also promote more active involvement of local capital. I would also like to emphasise the international dimension – Latvia is not engaging in these discussions alone. Both our Baltic neighbours and European partners face similar challenges and opportunities. It is precisely cross-border knowledge exchange and regional cooperation that can help avoid mistakes, adopt best practices, and develop solutions that truly meet the needs of our economy."
In the panel discussion on real estate financing conditions, experts discussed various financing methods in the residential and commercial property segments. Panellists assessed capital market instruments, such as REITs, covered bonds, and green bonds for improving the energy efficiency of buildings, and discussed examples of best practices suitable for the needs of the Latvian market.
During the final discussion, panellists exchanged experiences on investment opportunities, key obstacles, and success stories in the Baltic, Central European, and Eastern European regions. To attract local institutional capital and strengthen Latvia's position as a competitive investment destination, the introduction of REIT regulation merits consideration. So far, 14 European countries have adopted REIT regulation, and Latvia could be next. This would provide greater clarity for international investors and serve as an additional incentive for pension funds to invest more actively in Latvian real estate.