KEY POINTS:

  • Investment activity in the CEE region was stable. The leading position in 2017 was held by Poland, generating a total investment volume slightly above € 5 billion;
  • CBRE Baltics figures show CRE investment of more than €838 million in the Baltic region countries for 2017, representing a 3.4% decrease year on year;
  • In 2017 the most attractive asset type in the Baltics proved to be the retail sector  (41%), leaving the office sector in second place with 30.5% of all investment volume; interest in logistics has increased; The leading position in 2017 was held by Lithuania (44%), whilst 33% of all investment was generated in Estonia, leaving Latvia in third position with 23%;
  • In 2017 the largest investment of €127 m was completed by CPA:17 – Global, acquiring a 70 % stake in the real estate investment vehicle UAB Baltic Retail Properties, followed by the Nehatu logistics park transaction in Tallinn;
  • Ca. 70% of all investments were made in the Baltics’ capital cities. The remaining investments were completed in regional cities (Klaipeda, Narva, Tartu Daugavpils, Kaunas, Palanga, Liepaja and others), mainly as portfolio transactions in the retail and DIY sectors;
  • In 2017 the industrial sector, with a share of 20.4%, showed the strongest increase (by 27.5%), when compared with 2016.
  • In the years 2012-2014 ca. 80% of the investment volume was of Baltic and Nordic origin, as opposed to years 2015-2017 when more than 45% of the investments were from the US, Western Europe or elsewhere in the world. We are seeing increasing interest from Western Europe, which may result in transactions this year.