Time to consider the Baltics again? (EE/LV/LT)

In recent years Baltic countries have not seen any remarkable property investment transactions. The reasons for low investor confidence were pretty clear. However are there any positive changes?


This newly built shopping center on Gedimino Avenue in Lithuania is for sale.

The answer is definitely yes. Estonia is going to adopt euro next year, which shows that country has managed to meet all necessary criteria even during these difficult times. Lithuania's GDP has been the fastest growing within EU in Q2, 2010. All major financial institutions have upgraded economy forecasts of all three Baltic countries several times already. Everyone agrees, that recovery is faster than it was expected before and all three countries have started moving upwards at a full pace.

In the light of these improving economic conditions, stabilization in the property markets is evident as well. Vacancy rates have started to decline; rental rates have stabilized and in some segments have started demonstrating moderate growth. There has been an over 30% decrease in rental rates and minimum 200-300 bps increase in yield levels making these three countries very attractive in terms of potential investment return and future upside.

An evident example of available opportunities is a trophy asset in the main Baltic high street Gedimino Avenue. This newly built, perfectly designed shopping center is in foreclose sale. One of the nicest and best located shopping centers is being sold for less than its today's replacement costs and provides excellent opportunity to earn from both property and recovering economy-related issues.

For more information visit http://www.resolution-group.eu/g9/

Source: Newsec

Related News