Best Baltic City to invest in real estate (apartment)

5 Replies

Hi there, 

I am looking to invest in an apartment in either Vilnius, Kaunas (Lithuania), Riga (Latvia) or Talinn (Estonia). After initial research, I believe the Baltic countries still offer good growth perspectives, although it would have been much better five years ago (that´s always better, but I did not have the mindset and the money five years ago). Does anyone have experience buying apartments as a foreigner in any of those cities? Would appreciate your insights very much.

In exchange, I can offer in-depth insights and great contacts for investing in Tbilisi, which is for me one of the top places to invest at the moment (just bought something there during the crisis).

Best, Andreas

So I guess you're expecting capital gains there? What would propel the growth you're talking about? Otherwise, what sort of rental returns can you get through short-term rentals or long-term rentals? Can you get any financing there?

Hi,

So I made my research on the markets, where I expect still reasonable prices in capital cities with stable and growing economies in Europe. My top choices in Europe are the Baltic countries and Poland , but in Poland, it is currently difficult with financing. I want to finance about 60 to 70%. Thats why i am looking at Baltic countries, and according to my first research, financing should be available at 2 to 2.5% interest rates.

I expect rental yields not so great (5 to 7%),  but I see prospects in sqm prices and I want to diversify my portfolio and always like apartments in attractive (capital) cities, especially in the old towns.

I wanted to talk to people about their experiences before I get deeper into research for a particular place. You need to fly their anyway if you really want to get experience and dig deeper, but I hope to get ideas for my pre-selection here.

Can you get 60% to 70% financing from a local bank as a foreigner? Without earning local income? And a foreigner from any country?

Are these yields gross or net? If they're gross, what would be the net yields?

If you want to buy a place in which you'll spend a significant amount of time, your decision might be influenced by the city you prefer. If it's a pure investment, don't fall in love with a city or a property. It's about facts and figures and risks; you're not gonna be the one living there.

At equal profitability, I'd put Riga and Tallinn (in whichever order) ahead of Vilnius.

Mike, I think I need to clarify something here.

I am asking a question here if people have experiences investing in those countries because I want to have an exchange with them and know their experience and you send tons of questions back. If I would know everything, I would not write in this forum, so that's why I am asking! And be sure that I can do the math before investing somewhere, and I know the difference between gross and net yields :-) 

This being said, I appreciate that you engage in this topic, obviously few people here have experience with those countries or at least should they have, seems they don't want to share. 

I also appreciate your opinion on the ranking between Talinn, Riga and Vilnius. Thank you