A research produced by DTZ
In all three Baltic States, the office market is in a healthy expansion stage, with quite diversed (in terms of quality and location) new additions to the market that are expected to be sleekly absorbed.
Lithuanian and Estonian office market expands on the account of new developments; Latvian expansion is a mixture of new developments and re-introductions of the last assets previously frozen by the crisis.
The short-term average vacancies will therefore be pushed upwards in all three capitals. The rents meanwhile experience a ladder-type growth across the region, with the rates at which new buildings are being introduced into the market exceeding the average figures for lease contracts in currently existing office buildings.
With investment activity increasing in office segment, property yields are subject to marginal decrease, especially in the long-term perspective. After prolonged after-crisis stagnation, office market has finally witnessed several large investment deals across all three countries.
Source : DTZ (Groupe UGL)