In the commercial real estate sector, sellers are not willing to lower prices, and there are no buyers willing to meet the asking prices, leading to a current standstill in transactions, according to participants in the “Real Estate Hour” show.

Raiko Uri, a member of the management board and managing partner of Lumi Capital, mentioned that buyers are expecting asset yields to be half or a whole percentage point higher, but sellers don’t share the same view. Eduard Sorokin, a member of the management board and head of the investment portfolio at Uus Maa Real Estate Agency, added that sellers are not willing to reduce prices, while buyers are not ready to buy at those prices, as they cannot finance transactions effectively in the new situation.

In the show, we analyzed the market conditions for different segments of commercial real estate and did so from the perspectives of developers, owners, and tenants. We discussed offices, retail spaces, rental houses, as well as warehouse buildings.

Listen to the radio show HERE.

Äripäev / Kinnisvarauudised.ee / Lauri Leet