Housing prices in Lithuania are among the highest in the Baltic States. Much higher than in Latvia and comparable to Estonia.
Raimondas Reginis, Marketing Research Manager at Ober-Haus, comments: "Looking at the statistics of recent months, one can be glad that there is more positivity in the housing market. If we talk about the whole of Lithuania, about housing, houses, apartments, then we can see that activity is growing. This is the most important message. It should be remembered that the market has been in negative territory for the last 2.5 years. Finally, since the middle of the year, we have recorded a recovery: more transactions were registered than a year ago.
For a long time, buyers were held back by high inflation and extremely high interest rates, which is why some people did not think about buying a home or postponed these plans. This year, interest rates have started to decline, as inflation is already under control and very low. As a result, buyers have been gradually returning to the market since the middle of the year. A significant jump in sales took place in October.
According to experts, the current situation, when the market has not yet fully recovered, is beneficial to buyers, since their negotiating position is still stronger than that of sellers.
In the last two years, the increase in real estate prices in Lithuania has been very small.According to forecasts, this year will also have one of the lowest average annual growth rates.
Housing in Lithuania is significantly more expensive than in Latvia. So, for a standard apartment in an old apartment building in Vilnius, buyers today pay an average of about 2,000 euros per sq.m. In Riga, for similar housing, about 1,000 euros per sq.m.
Source: Made in Vilnius
