Baltic Real Estate Market -

Ups, Downs and Recovery

Saint PetersburgSeptember 30th, 2011

Mr. Edgars ShinsPresident of LANIDA

CEO of LATIO Ltd.Latvia

Baltic States

A gate between East and West

ESTONIA

Tallin• Population –

414,353 people• Residential sq.m –

ca. 11.05 million

• Commercial sq.m – ca. 480,000

Price drop in TallinFrom the beginning of the Real

Estate crisis in 2007 prices have fallen in Tallinn by

41.4%

Sales price of apartments and sales volumes in Tallinn and Harju county between 2004

and 2011

Number of real estate bought by foreign citizens

LATVIA

Riga• Population – 703,581

people

• Residential sq.m – 25,177,800

• Commercial sq.m – 52,450,000

Major price drop in the world

From the beginning of the Real Estate crisis in 2007

prices have fallen by

75%

Fastest and highest price increase in the world

Between spring 2010 and spring 2011 in Latvia it was the fastest and highest

housing price growth in the world throughout the year

19.09% From that moment till summer 2011 –

“stagnation” in real estate market

Sales price of standard-type apartments and sales volumes in Riga between 2004 and 2011

Quantity of transactions with the real estate registered with the Land

Registry (area of a land parcel 1,500-5,000

sq.m.)

Number of real estate bought in Latvia by foreign citizens between

2009-2011

LITHUANIA

Vilnius• Population – 539,000

people

• Residential – 14,093 thous. sq.m (227,756 privately owned flats)

only 564 new apartments in 2010; 750 expected to be built in 2011

• Commercial – A and B class – total 441,000 sq.m• Retail - 417,600 sq.m

Price drop in Vilnius

From the beginning of the Real Estate crisis in 2007

prices in Vilnius for residential RE have fallen by

~39%

Price increase in Vilnius

Between spring 2010 and spring 2011 in Vilnius was “sustainable” housing price growth throughout

the year

5%

Average apartment price in Vilnius (EUR/sqm)

Number of transactions in Lithuania (per month)

Average apartment price, EUR/sqm

2004-2011

International comparison – home ownership, %

How many years does it take to save the money

for purchase of an apartment of 70 sq.m?

The average rent pricein shopping centers

Thank you for your attention!

Mr. Edgars ShinsPresident of LANIDACEO of LATIO Ltd.LatviaTel. +371 29205677edgars@latio.lvlanida@lanida.lvlatio@latio.lv