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Investor Guide to Europe 2014
Lithuania, along with its Baltic neighbours, Latvia
and Estonia is one of the smallest markets across
Europe. Lithuania’s invested stock is a modest
EuR4bn, although with an estimated total stock
of close to EuR40bn, the country represents an
opportunity.
The lithuanian market grew rapidly from 2000, and was
spurred on by some cross border investment in 2003, when
Baltic Property Trust from Denmark made its first acquisition
in the country. Accession to the European Union also spurred
more cross border investment from a market previously
controlled by local investors and developers.
In the wake of the financial crisis the market has struggled,
although aggregate gearing has been relatively modest and
this has been reflected in low levels of foreclosures.
Within the last two years, market activity has gradually
improved. The oversupply of commercial premises has been
successfully absorbed. In 2012, new developments in the office
segment commenced; in 2013, retail projects that were put on
hold five years ago have been re-introduced into the active
pipeline.
Developments across all commercial real estate segments are
not confined to capital city vilnius. Substantial interest is also
generated by the second largest city kaunas, a crossroad to
multiple international auto arteries, and international seaport
klaipeda. Secondary cities Panevezys and Siauliai are also on
the list for investors.
Market sizing
lithuania
Europe
Invested stock*
(Total stock)
EUR 4bn
(EUR 40bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
5.0%
(1.0%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 0.2bn
(EUR 0.1bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – vilnius (Q4 2013)
office
Retail
Industrial
Current Yield 8.00% 7.75% 9.75%
Min/Max
(10y)
6.25-11.00% 6.00-11.00% 7.00-13.00%
Yield
definition
net initial yield
Source : DTZ Research
LITHuanIa
* 2012 figures
