Annual Real Estate Market Overview 2020

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We are pleased to introduce the 17th Colliers International annual overview covering commercial real estate market trends and the latest statistics and insights for all three Baltic States.

For the fourth year since 2015, total volume of commercial real estate investment in the Baltics in 2019 exceeded the EUR 1 billion mark, seeing another record-breaking year in Lithuania. The office segment remained the top choice for investors, attracting over half of total volume, and led by two core deals in Vilnius CBD, standing among the all-time largest office transactions in the Baltics - the acquisition of the Quadrum BC and the S7 office complex (stages I, II, III). Scandinavian and domestic investors were the most active in all three Baltic States throughout the year. Additionally, interest from other foreign investors has also been noticeable and continues to grow. Even though most investors were already well known to the Baltic market, the year saw several remarkable market entries, e.g. VIG Fund, headquartered in Austria.

The office market has continued to demonstrate consistent activity in all three Baltic capitals, resulting in one of the highest levels of development activity in Tallinn during the last decade. Riga office market experienced the largest stock increase in the last 10 years, while Vilnius office market entered a phase of monumental development activity.

The retail market was driven by robust development activity in Latvia where the market experienced the largest retail stock increase in the last decade, with over 100,000 sqm of leasable space added to retail stock. Development of the Lithuanian and Estonian retail markets was largely driven by refurbishment and expansion of existing shopping centres. Sentiments in the retail sector continue to be optimistic, with local and international brands remaining interested in further expansion. Shopping centres aim to increase the share of tenants providing leisure and sporting activities in addition to catering. An omni-channel approach has also become more common in the Baltics, with several grocery, fashion and other brands expanding their online presence and providing click & collect, home delivery, and diverse digital solutions for better interaction with products and enhanced customer satisfaction. 

The warehouse and industrial property market remained active in terms of new developments and buoyant demand for modern quality space - a trend that will continue in 2020 as well.

Colliers’ COVID-19 Insights
Read about market observations and insights for the major CRE sectors, along with some overall key trends, accompanied by graphical analysis. Designed to help you navigate the impacts of COVID-19 novel coronavirus upon real estate and make the most of opportunities in this challenging time. The resource will be updated on a weekly basis for the foreseeable future, adjusting the analysis and insights as necessary. 

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