Stability in Lithuanian commercial property market in 2010
While the situation in 2009 in the Lithuanian commercial property sector can be characterised as a “free fall”, the sector began to show certain stability in 2010 and the situation showed definite signs of improvement as early as the second half of the year. What is so special about the commercial property sector in 2010? First, it is the record low in both sale and rental prices, which have remained stable in the second half of the year in most of Lithuanian cities, with Vilnius, the capital showing some early signs of recovery. Second, market activity is still exceptionally low, closely resembling that in 2009. The only sector showing a higher rate of activity was the modern office rental sector, due to local and new foreign companies alike who are financially stable, taking advantage of the current situation in the market, and who have rented new premises at exceptionally attractive prices. Third, the new supply is at its lowest for 10 years. In 2010, Lithuanian cities have seen a particularly low number of commercial projects carried out, as most of them were suspended, still waiting for a more active market.
Despite the still low strength of the commercial property sector in Lithuania, the first half of 2010 has already seen the first positive changes in the modern office sector. This sector in Vilnius was the first to record a decreasing vacancy rate and increasing rents. Positive trends in the modern offices market in the capital city have also been recorded in Q4 2010.
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