The Lithuanian market for commercial real estate investment transactions is gaining a new impetus. Hope for sustainable growth comes from the return of investor interest, the banking sectors’ interest in financing investment transactions, and positive macroeconomic forecasts.
The first half of this year saw five investment transactions in Lithuania’s commercial real estate market with a total investment value of around 430 million litas. This is a 193% increase compared to 2012. Total area of acquisition amounts to 126,500 m2. During this year business centres Alpha, Beta & Gamma, as well as the business centre in A.Goštauto street in Vilnius were sold. Such real estate properties as 'Vilniaus verslo uostas' and shopping centre 'Europa' are currently available for investment.
Stability of income from rent is viewed as one of the most important criteria to attract investment from both investors and banks providing finance for transactions.
The increase of rent prices as well as an increase in the occupancy rate of buildings should guarantee a steady growth of the market in the upcoming years. Although with some reservation, experts unanimously predict a positive outlook for the real estate market.
This overview is presented to you by Simona Oliškevičiūtė-Cicėnienė, Head of Real Estate and Infrastructure Practice Group, Raidla Lejins & Norcous; Arvydas Avulis, manager, Hanner, AB; and Giedrė Saveikienė, Head of Real Estate Client sub-department, Swedbank.
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