Demand for rental apartments remains high

The highest rental market activity in the Baltics can currently be observed in Riga, Vilnius and Tallinn are not far behind in terms of demand, according to CBRE Baltics data. Currently, the number of professionally managed apartments in Riga exceeds 2,000, while in the capitals of Lithuania and Estonia this number is significantly lower, or around 1,000 apartments in each of the cities, explains Mārtiņš Grīnbergs, CBRE Baltics senior market analyst. He points out that there are currently several thousand rental apartments in the Baltics at the design and planning stage, so it is predicted that the rental sector will continue its growth in the coming years. Developers are cautious The current market situation in the segment of professionally managed rental houses is very intense, as the demand for a quality rental product still remains high, notes M. Grīnbergs. “In this segment, the demand is mainly made up of foreign students who do not plan to buy their property here, as well as young professionals who are still making the necessary savings for the purchase of their property,” explains CBRE Baltics senior market analyst. Vinš points out that Riga’s rental fund consists mainly of rental houses built at the beginning of the 20th century, which were denationalized when the country regained its independence.

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