The Baltic property markets – back on track
The mid-term economic potential for Lithuania, Latvia and Estonia is robust, thus expecting to bring more activity and reinforce the Baltic position in the European property map.
All three Baltic countries have continued demonstrating one of the best growth results and shape of government finance within the EU, continuously rising private consumption as well as retail trade, stable growth of consumer and business confidence. Economy growth is continuously fuelled by increasing exports and strengthening domestic demand. All three countries are expected to be among the most rapidly growing economies in Europe within short and mid-term. The currency risk is no longer a risk for businesses and investors – Latvia and Estonia are in Eurozone already, while Lithuania plans to adopt Euro in 2015.
”Private consumption has a more significant role in economic development and the retail trade in the Baltics continues accelerating the fourth year in a row. Turnovers of the most successful shopping centres grew by 8-15% per annum and current occupancies are at 97% to 99%. Entry of new retail chains, like H&M, IKEA shows the confidence of the Baltic markets and accelerates interest from other solid international players”, says Neringa Rastenyte, Head of Transactions Newsec Baltics.
Vacancy rates of office buildings have dropped significantly since 2009, thus enhancing development of new buildings. Average A class vacancy rate decreased from 5% to 2% and now is at the critically low level. International occupiers like Barclays, Danske Bank, Western Union and others keep enjoying from perfect combination of labor quality and costs and are the most important occupiers of new buildings; while rapidly growing small and medium businesses prominently occupy all types of office facilities all around the major Baltic towns.
Global trends attract investors’ interest towards good logistic properties. 25% of investment transactions have been closed in the field of logistic assets in 2013. The modern logistic centres are fully occupied and the new developments take place.
Please see the full version of Baltic Property Market Report 2014 at http://www.newsec.lt/en/reports-all/1-baltic-property-market-report-2014
For more information, please contactNeringa Rastenyte, Head of Transactions, BalticsPhone: +370 686 17 468, e-mail: email@example.comNiklas Alm, Communication Director NewsecPhone: 0708-24 40 88, e-mail: firstname.lastname@example.org