Apartment prices in major Lithuanian cities drop 38% over past 2 years

Ober-Haus Lithuanian apartment price index (OHBI) shows that apartment prices in major Lithuanian cities have been going down for 24 months in a row. In December 2009, apartment prices in the five largest Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai, and Panevėžys) decreased 0.9% (a monthly decrease of 1.1% was recorded in November). This is the smallest monthly decrease in the prices in 2009.

From the highest summarised apartment price level, which was achieved in December 2007, and until December 2009, apartment prices in major Lithuanian cities dropped 38.0% and return to the price level recorded in October 2005. Apartment prices went down 39.9% in Vilnius, 27.1% in Kaunas, 42.6% in Klaipėda, 42.5% in Šiauliai, and 44.0% in Panevėžys. The real price index for major Lithuanian cities (after eliminating the impact of inflation) over the same period decreased somewhat more - 43.5%.

When we consider absolute changes in prices, we can see that the greatest “loss” in the value of apartments was recorded in Vilnius and Klaipėda. From the peak level in prices, the price per square meter in Vilnius and Klaipėda went down virtually the same amount, i.e. approximately 780 EUR, whereas in Kaunas, Šiauliai and Panevėžys the decrease was approximately 400–440 EUR.


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