KEY POINTS

 

•GDP growth in the region remains above the 3% level y/y. The economies are primarily driven by increasing investment and exports, as well as strong private consumption.

•In H1 2018, commercial real estate investments in Europe (excluding Russia) reached EUR 129 bln or 2% less compared to the same period last year.

•Investments in the Baltic region reached EUR 603 mln for H1 2018, representing a ca. 27% increase y/y.

•Office and retail segments were the most active in terms of investment volume, with respectively 41% and 39% of the total investment amount.

•The office segment showed the strongest increase of 60% y/y in terms of investment volume. Retail has followed with 15% y/y/ rise, while industrial transaction volume decreased by 27%.

•The most active market was in Lithuania with 50% of market volume. It was followed by Estonia with 30% of all investment, leaving Latvia in the third position with 20%.

•The largest investment of EUR 124.6 m was completed by NEPI Rockcastle, which acquired the shopping centre Ozas in Vilnius, Lithuania.

•Ca. 83% of all investments were made in the Baltics’ capital cities representing 2 p.p. more compared to the same period a year ago.