NORDIC INVESTORS AND CIS WILL BE THE REASON FOR GROWTH OF THE REAL ESTATE MARKET IN THE BALTICS IN 2013
February 5, 2013
The real estate market of the Baltic States will grow during the next 2–3 years due to the increased trust of Norwegian and other Scandinavian investors, as well as funds received from CIS countries. It is estimated that real estate transactions worth at least EUR 300 million will be carried out in 2013, forecast Newsec analytics in their new Baltic Property Market Report.
“After the drop in investor activity in the last few years, we have observed an upturn in our region, and the real estate market has been no exception. Although the number of institutional investors is limited, the funds invested by them are fairly significant. The increasing amount of incoming Nordic and Russian funds reach the Baltics via local partners, so creating a strong circle of local property professionals”, said Mindaugas Kulbokas, Head of Research and Analysis for the Baltics at the financial and real estate consultancy company Newsec.
“Part of the current appeal of the Baltic States as a desirable market for investment activities is the overall stability of the legal environment in the three countries. Of course, improvements still need to be made, but the anticipated growth in the real estate markets noted in the 2013 Baltic Property Market Report is in part due to an understanding by investors that regulation in this area of economic activity is in line with European norms. It is worth noting that while each of our countries still have their respective problem areas, they each continue to work to improve regulation relating to the real estate sector, and have engaged in healthy competition between Estonia, Latvia and Lithuania to create a better environment for business”, said Mr Raimonds Slaidiņš, Chairman of the Management Board of LAWIN, the internationally highest ranked business law firm in the Baltics.
“Now is the best time to finalise contracts for the future lease of offices. One good example i shown by the lease signed by one of the largest banks in Lithuania AB DNB Bnkas, part of Norway‘s largest financial services group, and Norwegian office eveloper Schage in the Quadrum project in Lithuania”, Mr Kulbokas said.