Webinar: Property market horizon scan with CBRE Baltics

Tuesday, May 12, 2020 - 12:00 to 13:00

On 12 May, we held a joint chamber webinar “Property market horizon scan with CBRE Baltics".

The webinar was kicked off by Ignas Goštautas (Senior Analyst Baltics, Research & Consulting) who gave his take on macroeconomic insights. It was reported that due to the easing of the lockdown in Baltics and Europe, economies are partially reopening, yet the economic recovery will be gradual. We should see economic growth next year; however it is unlikely to reach the previous level before the end of 2021.

Vineta Vigupe (Senior Director, Investment Properties) spoke about the Investment market pointing out that it is expected that Baltics will have a lower volume of investment transactions in 2020, however the true impact on investment market will be seen in Q2 data. It was reported that investors will pay more attention to logistics, primary location offices with stable tenants and supermarkets – demand for larger shopping centres and hotels will decline. It was also pointed out that banks will pay a significant role supporting investments when issuing financing.

Denis Rein (Associate Director Baltics, Advisory & Transactions) gave presentation on office sector pointing out that we will likely see new challenges for the commercial real estate’s sectors – the global pandemic might temporarily postpone major leasing decisions and the constructions activity is anticipated to be lower in 2020 compared to 2019. We will also see a lot of space reorganisation due to the new health and safety measures. It is too early to say what the impact of remote working will have on office market, but as pointed out by Denis, we will most likely see trends of both moving to smaller offices due to increase of remote workers as well as bigger offices so the safe distance in the office space can be applied.

Talking about residential sector, Mārtiņš Grīnbergs (Senior Market Analyst, Valuation & Advisory) pointed out that the state of emergency has put pressure on developers – there has been some major construction slowdowns, and almost all new construction work has been postponed. On-site visits have been limited, negatively affecting the apartment sales process. Many developers are looking to introduce new technological ways of virtual apartment visits, but in lacking a real-time experience, many conservative clients will most likely postpone any decision until the end of the state emergency situation. The short-term rent apartment market has stopped completely. 

We are very grateful to CBRE Baltics team of experts for finding time to address our members and answering questions related to the property market.