In H1 2019 GDP increased by within the 2.4-4.2% y/y range in the Baltics. The projections for the future growth broadly remain unchanged, at above 3% in 2019 and above 2.5% in 2020.
The pace in the Baltics’ investment market has decreased. In H1 2019, total investment volume reached EUR 432 mln and was 28% lower compared to the same period a year ago.
There were six deals of over EUR 10 mln, while at the same time a year ago there were 14 such transactions.
Eastnine acquired 3 of the 4 buildings within the S7 project in Vilnius from M.M.M. projektai for 128 mln at 5.8% yield. The S7 sale accounted for more than 70% of the office investment volume in the region.
Investments in retail decreased by 50% y/y and were the primary factor involved in the overall slowdown.
The transaction volumes in the industrial sector increased by 72% y/y.
Yields have dwindled marginally for office and industrial properties.
In H1 2019, investment activity in Europe was weaker compared to the same period a year ago. Commercial real estate investment in Europe (excluding Russia) decreased by 11%. Hotels was the only sector that recorded higher investment volumes.