aA
Foreign investment in Lithuanian commercial real estate rose 6% in the first three quarters of 2015 to hit €183 million compared to the same period last year.
Foreign investment in Lithuanian commercial real estate rises 6% in 2015
© K. Cemnolonskio nuotr.

This was driven by a range of new international players entering the market with transactions for large commercial facilities in the past year, such as the international investment company Partners Group, Vilnius, buying the business centre "Worth" and two shopping centres in Kaunas and Klaipėda.

“The fact that large foreign investors are increasingly coming to the Lithuanian commercial real estate market is a proof that it is not only trusted, but it is held as attractive and viable. Typically, before taking such a step, international investors deeply analyze the market situation and its potential. The average return on investment in Lithuania is still significantly higher than in Scandinavia or other mature markets,” said Egidijus Damulis, the head of the INVL Baltic Real Estate.

According to the data from real estate company Ober-Haus, the biggest investments by country were from Switzerland at 36%, followed by Denmark at 20%, and Estonia – 16%, Netherlands – 13%, Sweden – 3%. Lithuanian investors contributed a relatively modest 12% of total investment in commercial real estate in the three quarters.

These figures covered investments in offices, retail, warehousing or production facilities worth more than €1.5 million.

The investments are being driven by the high returns available on commercial property in Lithuania with returns ranging from 7% to 8.25% on modern offices in Vilnius, one of the highest rates across European cities, according to Ober-Haus data.

Baltic capitals recently ranked among the top ten cities in 2014 for commercial real estates returns in an office market overview of 45 European Cities prepared by consulting company BNP Paribas Real Estate and property management company Newsec.

Alfa.lt

Linkevicius: the Holocaust is scar on humanity's face (1)

The genocide of the Jewish people is a scar on Lithuania and the whole humanity's face, Lithuanian...

PM's popularity rating plunges further down (1)

Lithuanian Prime Minister Saulius Skvernelis is losing his ongoing battle with President Gitanas...

Alternative medicine legalized in country

The Seimas of Lithuania legalized alternative medicine in the country after adopting amendments to...

Foreign ministry advised against travel to central China due to coronavirus

The Lithuanian Foreign Ministry has advised Lithuanian citizens against traveling to China 's central...

Plans to commemorate Baltic Way by naming roads

Lithuania plans to commemorate the Baltic Way , which took place more than 30 years ago, by naming...

Top news

Romanov and 12 other people suspected of squandering Ukio Bankas' assets

Vladimir Romanov, Ukio Bankas' former majority shareholder, and 12 other people are suspected of...

Linkevicius: the Holocaust is scar on humanity's face (1)

The genocide of the Jewish people is a scar on Lithuania and the whole humanity's face, Lithuanian...

Fines for some free plastic bags in stores set

The Lithuanian parliament voted on Tuesday to establish fines of thousands of euros on retailers...

Lithuanian students invent belt that monitors fetus during pregnancy

A team of students from Kaunas University of Technology (KTU) BeltaMom has designed a belt for...

Pursuing investment: shrinking production in Germany brought new opportunities for Lithuania

In 2019 47 foreign direct investment (FDI) projects were attracted to Lithuania, including companies...