Rental levels fell at the fastest ever rate in all three Baltic capitals - Vilnius, Riga and Talinn - in the first half of 2009, with declines in excess of 30%, according to Re&Solution. However, rents stabilised toward the end of the period and are expected to bottom out in the second half of the year.
Rental levels fell at the fastest ever rate in all three Baltic capitals - Vilnius, Riga and Talinn - in the first half of 2009, with declines in excess of 30%, according to Re&Solution. However, rents stabilised toward the end of the period and are expected to bottom out in the second half of the year.
At the end of the second quarter the vacancy rate in the Vilnius office market reached 20%, a dramatic increase compared to the level of 1-3% seen in 2006-2008. At 16%, the vacancy rate was somewhat lower in Class-A buildings, but stood at 24% for Class-B buildings. In total, these figures represent nearly 60,000 m2 of vacant modern offices floor space in the city.
Office owners and developers in Riga face letting difficulties as well. Following a record year of new completion in 2008, when over 100,000 m2 was added to the market, the total vacancy rate in Riga is expected to total 15% in 2009.
The Tallinn office market is no exception with an average vacancy level of 14% forecast for 2009.
Re&Solution claims to be the leading regional provider of integral real estate, financial, investment and property management services in Lithuania, Latvia, Estonia, Kaliningrad and Northern Europe.
