Baltic, Investments, Real Estate

Tallinn is the leader in terms of foreign investments in real estate – EUR 250 million, followed by Riga with EUR 212 million and Vilnius with EUR 140 million.

Given that the first six months this year were similar to last year in terms of investment in real estate, the total figure for this year is likely to be similar to that for 2011, predicts Colliers International.

According to Colliers International market review, the main investment targets in 2011 were retail trade facilities and office buildings. The largest investment in real estate in the Baltic countries last year was the acquisition of "Kristiine" shopping center in Tallinn by the Finnish retail trade investor "Citycon" for a total of about EUR 105 million.

In Lithuania, Finnish investor Pontos bought shopping center "Babilonas" in Panevezys for about EUR 24.1 million.

Compared to its Baltic neighbors, Latvia saw higher activity in the office building segment. Two modern office buildings in Riga, Astras biroji and "Unity Business Center" were bought by Baltic&Nordic Properties.

The hotel segment was also more active in Latvia than in Estonia and Lithuania. Six hotels in Latvia changed hands over the past 18 months, including four in Riga and two in Liepaja.

In the segment of industrial facilities and warehouses, Czech company VGP sold a 40,000 square meter "Tanassilma Industrial Park" in Tallinn to Scandinavian fund "East Capital Baltic Property Fund II" for about EUR 24 million.

Colliers International believes that the most demanded investment targets in 2012 will be retail trade facilities and office buildings in good locations, steady cash flows and good return.