Baltics Retail 2018 MarketView by CBRE Baltics

Shopping centres are eagerly renewing in order to keep up with the latest retail trends.

  • In 2018 GDP increased more than 3.0% y/y for the second consecutive year in the Baltic states.
  • The labour market continues to hot up as the unemployment rate has decreased and salaries have been hiked across the states.
  • Estonia observed 4.7% higher private consumption expenditure, Latvia followed with 4.5%, and Lithuania with 3.9%.
  • Inflation in the region is expected to moderate at the ca. 2% level in 2019 and 2020.
  • Retail turnover increased by 6.8% in Lithuania, 5.1% in Latvia, and 4.8% in Estonia. Sales of electronic household appliances, pharmaceuticals, communication, and recreation goods were the most notable.
  • In 2018, investment volume in retail properties increased by 3%. A few large transactions sustained the investment pace in the retail sector.
  • Results of the leading shopping centres were mixed, especially taking into account robust retail growth. This was mainly due to ongoing multiple refurbishments, renovations, and expansions. 
  • Competition among grocery stores as well as home improvement retailers is building up. New and existing players are intensively opening new sites
  • In 2019, one major shopping centre is expected to be opened. Akropole Riga launches in April. The shopping centre should add 62,000 sq m to the total retail stock. 
  • Prime high street retail rents averaged at ca. EUR 50-60 sq m per month. At the same time, space in prime shopping centres averaged at ca. EUR 35-40 sq m per month.
  • In 2018, investment volume in retail properties increased by 3%. A few large transactions sustained the investment pace in the retail sector.