Re&Solution Blog

The apartment rental market in Vilnius and Lithuania in general are not very professional, except its particular sectors. One of them is rent of luxury apartments that became more professional for the specifics of the market and rather high price of the contract. In other cases there dominates black market that penetrates because of quite low incomes of the rent, numerous players of the market (both private and agencies) and undeclared incomes of the rent (especially when flats are rented by natural persons for natural persons). Fear of the self-will while removing the tenants beforehand and insolvency of the tenants or their malicious damage for the flat or its property often provoke to make cartel agreements of the terms of rent. To this day in Lithuania there were almost no institutional landlords, who would have the entire buildings of flats for rent. How did such ...

The triple L (location, location, location) principle is not only the main one for property developers, but also for occupiers when choosing their office location which should first of all be convenient by all means, as well as confirm their standpoint communicated to the employees, partners, customers, etc. This makes the choice very argued therefore the decision very responsible. The information provided in this article is to support this important desicion. When speaking about main business areas in Vilnius, four of them are counted: central business district (CBD) and surrounding area, the Old town, Naujamiestis district, Northern part of the city (North town district and buildings on / near by Ukmerges str.). In the city some reasonable quality (mostly B class) stand alone office properties are found. These buildings usually fill ...

The global climate change that has been observed for the last several decades is apparent. Most of climate experts agree that the human behavior has significantly affected such changes. Thus, the global movement, diverted to control the global warming and its consequences, assumes acceleration. “Green” (sustainable) building is of no exception. Essential attributes of such construction are as follows: • Efficient use of natural resources • Minimum environmental pollution • Eco-friendly construction materials and economic resources (as much of natural materials as possible) • Low energy consuming transportation of component parts of the building, including construction materials • Location next to inhabited localities and public transport stations (minimum use of own vehicles) • Minimum impact on the landscape as well as flora and fauna Green architecture by EduardoZ. Just recently accomplished Goldman Sachs study demonstrated that socially responsible organizations ...

The unseen optimism and hardly explained competition The new market brief made by Re&Solution group, says that recently some optimism has been observed in Estonian real estate market. Mainly that is observed in commercial segment, while strong optimism can be also observed in residential segment as well. Amount of foreign investors, especially from Scandinavian countries, coming to Estonia looking at potential acquisition targets has increased significantly during last few months, while prices of recent transactions point at remarkable yield compression that arguably has happened in the market. Although just half a year ago nobody would consider buying yields below 10%, then few recent office real estate transactions have demonstrated yields close to 8%, and couple more transactions in office and retail segments are currently being planned at similar level. Currently Estonian market is also seeing a remarkable number of local companies and high net worth individuals ...

Giedrius Ragaišis, Head of Sales, Lithuania Some remarks which came up from last few meetings with decision makers (both tenants and Landlords (LL)) based on which a break point in office market is expected soon. 1. It seems that LL are not ready to make same discounts like before and tenants started to understand this (opposite to what was in Y 2009). 2. Now tenants are seeking to settle themselves in the premises which suits them the most and the price issue became secondary (this should not be understood that the price became not important rather than that tenants are ready to follow asking rent price). 3. Companies started to consider expansion (or at least plan the premises with close expansion possibility) and that is a very good news in general. 4. Vacancy in higher class (A+, A, B+) office segments is returning to the level of Y 2008 (close to 5-7 %). 5. Lower segment office ...

Most of the companies are not very sure on their future prospects. And it’s no wonder why when the financial stability and economic environment are in such stress. We see the tendency in Vilnius that the most suitable lease periods are less than three years, with very flexible agreements if it exceeds the mentioned streak. Also the very clear increase in a very small office premises segments are seen for today. Start up companies seeks small premises with all additional services included. Usually the new start-ups pay for a single work place and receive all additional services as bonuses (conference room, office manager, and kitchen). The rent prices compared to the “golden age” (year 2007) in Vilnius are subsided, and no matter that there is a start-up company or a successfully working business, all takes advantages of this favorable situation. Here are a few basic things to ...

A new study on the Baltic real estate markets says that the Baltic economies and property markets are still rather vulnerable; however the latest developments enable to expect recovery already in late 2010. The report states that the Baltic region possesses plenty of secure enough investment opportunities, being locked in excessively down-graded economy and exaggerated fear of potential risks. According to the report, entitled Baltic property market report, 2010, rent levels have decreased by at least 20 to 30 % and yield levels have increased by up to 250 – 400 percentage basis points during the recent years. Consequently, these changes have resulted more than 30% and in some cases up to 40-50% declines in prime property values. “We believe that depression is no longer the right definition for this region. A time to restart and ...