Baltics Investment MarketView H2 2019

13 mar. 2020

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In H2 2019 GDP increased within the 2.5-4.2% y/y range in the Baltics. The projections for future growth broadly remain at above 2.5% in 2020 and 2021.


Annual investment volume surpassed EUR 1.2 bln for a second consecutive year.


The pace in the Baltics’ investment market has increased. In H2 2019, total investment volume reached EUR 744 mln and was 24% higher compared to the same period a year ago.


The largest transaction of the year was the Quadrum business centre project acquisition in Vilnius by German institutional investor from Schage Real Estate for ca. EUR 156 mln at a yield below 6%.


Intermediate Capital Group (ICG) acquired the Raadiku municipal housing scheme in Tallinn from LCN Capital Partners for EUR 144 mln at 6.2% yield.


Austrian Vienna Insurance Group concluded a transaction by buying a part of Baltic Re Group`s office and retail properties in Riga`s historical centre for EUR 59 mln.


Investment in the industrial sector constituted 12% of the total investment market in the second half of the year (15%  2019).


Investment market is getting broader and deeper, atracting new entrants such as Vienna Insurance Group (VIG), ICG, Kildare (2018), Nepi Rockcastle (2018) and others who deploy capital from institutional investors.


Deka Immobilien who had paused the Baltics for more than 10 years, started investing in a new asset class – offices.