● THE LITHUANIAN PROPERTY MARKET NEWSEC PROPERTY OUTLOOK • SPRING 2022
THE LITHUANIAN PROPERTY MARKET INVESTMENT MARKET ACTIVITY IN LITHUANIA RETURNS TO RECORD LEVEL the year, will continue rising and this year could potentially reach around 7.0%. A shrinking supply of labour will continue to put upward pressure on wages, and companies that are expanding rapidly will continue to face challenges in attracting talent. Activity on the Baltic property investment market increased notably in 2021, with transactions reaching a record level. Investment deals in Lithuania amounted to EUR 444 million, an increase of almost 70% from 2020. Activity was high throughout the year, but an especially good last quarter took the total amount of investments for the year into record territory. In fact, as the total is very similar to that in 2019, it is safe to say Lithuania has returned to pre-pan-
demic levels. Growth was mainly driven by deals within the retail and industrial segments, but investments were spread roughly equally across all the traditional commercial property segments. Of special note in 2021 was the emergence of a new segment in the market – demand for commercial residential property for lease projects was met through advance acquisition agreements. A similar level of investment activity is expected in 2022, and Lithuania’s share of investments, which has declined over the last several years, is expected to increase in the Baltic context.
Contact: Kristina Živatkauskaitė k.zivatkauskaite@newsec.lt
Photo: Rehau
The growth of Lithuania's economy in 2021 matched the latest forecasts, with GDP growing by 4.8%. The main contributors were strong exports and industrial production growth of nearly 20%. Rapidly falling unemployment put pressure on the labour market, with job vacancies surging and average wages increasing about 10% throughout the year. Meanwhile, positive trends in consumer confidence and economic sentiment spurred household consumption and boosted the retail sector. IT and logistics remained among the fastest growing sectors, while tourism and accommodation services also showed early signs of recovery. In 2022, the Lithuanian economy is currently forecast to grow by about 3.2%. Inflation, which has risen rapidly and was at 4.6% by the end of
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