Baltic Real Estate Market -
Ups, Downs and Recovery
Saint PetersburgSeptember 30th, 2011
Mr. Edgars ShinsPresident of LANIDA
CEO of LATIO Ltd.Latvia
Baltic States
A gate between East and West
ESTONIA
Tallin• Population –
414,353 people• Residential sq.m –
ca. 11.05 million
• Commercial sq.m – ca. 480,000
Price drop in TallinFrom the beginning of the Real
Estate crisis in 2007 prices have fallen in Tallinn by
41.4%
Sales price of apartments and sales volumes in Tallinn and Harju county between 2004
and 2011
Number of real estate bought by foreign citizens
LATVIA
Riga• Population – 703,581
people
• Residential sq.m – 25,177,800
• Commercial sq.m – 52,450,000
Major price drop in the world
From the beginning of the Real Estate crisis in 2007
prices have fallen by
75%
Fastest and highest price increase in the world
Between spring 2010 and spring 2011 in Latvia it was the fastest and highest
housing price growth in the world throughout the year
19.09% From that moment till summer 2011 –
“stagnation” in real estate market
Sales price of standard-type apartments and sales volumes in Riga between 2004 and 2011
Quantity of transactions with the real estate registered with the Land
Registry (area of a land parcel 1,500-5,000
sq.m.)
Number of real estate bought in Latvia by foreign citizens between
2009-2011
LITHUANIA
Vilnius• Population – 539,000
people
• Residential – 14,093 thous. sq.m (227,756 privately owned flats)
only 564 new apartments in 2010; 750 expected to be built in 2011
• Commercial – A and B class – total 441,000 sq.m• Retail - 417,600 sq.m
Price drop in Vilnius
From the beginning of the Real Estate crisis in 2007
prices in Vilnius for residential RE have fallen by
~39%
Price increase in Vilnius
Between spring 2010 and spring 2011 in Vilnius was “sustainable” housing price growth throughout
the year
5%
Average apartment price in Vilnius (EUR/sqm)
Number of transactions in Lithuania (per month)
Average apartment price, EUR/sqm
2004-2011
International comparison – home ownership, %
How many years does it take to save the money
for purchase of an apartment of 70 sq.m?
The average rent pricein shopping centers
Thank you for your attention!
Mr. Edgars ShinsPresident of LANIDACEO of LATIO Ltd.LatviaTel. +371 [email protected]@[email protected]