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The value of the Ober-Haus Apartment Price Index (OHBI) in Lithuania, which records changes in apartment prices in the five main cities of Lithuania (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), rose by 2.9% in June 2022 (growth in May 2022 was 1.7%). In general, apartment prices in the main Lithuanian cities have increased by 21.2% over the last 12 months (annual growth in May 2022 was 20.1%).
In June 2022, apartment sales prices grew by 3.5% in the capital city and the average price per square metre reached EUR 2,308 (+EUR 79/m²). In June, Kaunas, Klaipėda, Šiauliai and Panevėžys recorded increases in apartment prices of 1.8%, 2.4%, 1.2% and 2.4% respectively and the average price per square metre increased to EUR 1,587 (+ EUR 28 /m²), EUR 1,495 (+ EUR 35 /m²), EUR 1,030 (+ EUR 12/m²) and EUR 1,012 (+ EUR 23 /m²) respectively.
Annual growth (June 2022 compared to June 2021) in the sales prices of apartments increased in all the main cities of the country: 23.4% – in Vilnius, 20.8% – in Kaunas, 16.0% – in Klaipėda, 17.7% – in Šiauliai and 17.5% – in Panevėžys.
“In June this year, Lithuania recorded quite solid volumes of apartment sales. According to the data of the State Enterprise Centre of Registers, the total number of apartments sold in Lithuania was 7% higher than in May this year. This June became the second-best performing month of the year and the increase in the number of purchased apartments could be seen in all major cities of the country. However, compared to the same month last year, the number of apartments purchased this year is 12% lower. Nevertheless, taking into account the overall geopolitical and economic situation and the record volumes of home purchases last year, the overall number of apartment purchases remains really solid.
Growth in apartment prices in the main cities of the country has also held firm in recent months, but the annual growth rate has already stabilised and remained largely unchanged. Despite the declining optimism about the economic prospects of the country in the short term and the factors which might negatively affect the real estate market as a whole (e.g., falling real personal income in the context of very high inflation, rising interest rates, or even the increasing likelihood of recession), home sellers’ expectations are still at a very high level.
Quite high level of overall housing market activity in the country still allows home sellers to sell at a higher price not only in the country’s largest cities, but also in its smaller towns. For example, in May-June this year, the average selling price per square meter in Šiauliai and Panevėžys exceeded 1,000 euros. Analysis of the latest registered sale-purchase transactions in these cities shows that buyers are already paying EUR 1,400-1,600 per square metre for good-quality apartments located in the most valuable areas of the city, while the price of the square metre of the most expensive apartments can reach EUR 2,000. The most expensive apartments are those located in new or reconstructed buildings in the central part of Šiauliai or Panevėžys. Similar trends can be observed in the rest of the country, where sales prices of apartments in good condition have reached record highs. In particular, there is a large difference in sales prices between apartments in poorer condition in old multi-apartment buildings and freshly repaired apartments in renovated multi-apartments buildings. Extremely high prices for building modernisation and housing installation have pushed the sale prices of quality housing to record highs throughout the country“, Raimondas Reginis, Head of Market Research for Baltic Countries at Ober-Haus, noted.
The Ober-Haus Lithuanian Apartment Price Index (OHBI), which follows changes in apartment prices in five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 1.7% in May 2022 (April 2022 saw a 1.6% growth). The overall apartment price level in these Lithuanian cities has increased by 20.1% in the last 12 months (annual growth in April 2022 was 21.4%).
In May 2022, apartment sale prices increased by 1.5% in Lithuania’s capital, the average price per square metre reaching €2,229 (+34 €/m²). In the same month, Kaunas, Klaipėda, Šiauliai and Panevėžys saw apartment price increases of 1.9%, 1.0%, 3.8% and 3.6%, with the average price per square metre hitting €1,559 (+29 €/m²), €1,460 (+14 €/m²), €1,018 (+37 €/m²) and €954 (+35 €/m²) respectively.
In the last year (May 2022 compared to May 2021) apartment prices have increased in all the bigger cities in the country: 21.7% in Vilnius, 21.3% in Kaunas, 15.0% in Klaipėda, 18.6% in Šiauliai and 16.2% in Panevėžys.
Despite the uncertainty in global geopolitics and the country’s economy, apartment prices in the biggest Lithuanian cities continued to increase at a high rate this April and May with monthly growths of 1.6% and 1.7% respectively. It is worth noting that this relatively rapid price increase took place against the background of an obvious downturn of sales contracts. For instance, in May 2022, there were 12% fewer apartments sold in the capital Vilnius than in April and even 39% fewer than in May last year. The number of sales contracts in Kaunas and Klaipėda, compared to the previous month, did not change as much. The number of contracts in Klaipėda decreased by 2% over the month, while in Kaunas it actually increased by 1%. However, this May’s contract statistics for these cities have also clearly shrunk in comparison to last May: a 27% decrease was recorded in Kaunas and a 21% drop in contract numbers in Klaipėda. However, it should not be forgotten that last May a record high number of contracts was exchanged, and so this year’s decrease only seems remarkable when compared to last year’s figure, and therefore does not stand out in the context of figures for previous years.
So, the housing market has now entered a kind of turbulence zone, where even with the number of contracts decreasing, we continue to see noticeable price growth. This phenomenon might be explained by the fact that although the demand for housing has decreased, the decrease in housing supply has been even more pronounced. Owing to increased costs of construction materials, labour shortages and disrupted supply chains, quite a few developers are halting implementation of their new projects, similar to the pandemic year of 2020, whereas the choice of apartments in already built or about to be finished projects of blocks of flats has always been very limited. Some developers have also suspended sales and this is contributing to an imbalance between supply and demand in the apartment market and even leaves room for it to increase if, for example, players entered the market with the intention of buying up apartments in bulk and then renting them out (buy to rent).
It would therefore appear that the market situation is not going to change over the next few months even against the backdrop of growing interest rates, the universal real estate tax in the pipeline and geopolitical threats. However, it must be noted that as the current price increase is due to meagre housing supply rather than to a healthy growth in demand, such price growth is now less sustainable and may in fact be a setback for growth in housing demand in the future.
Ober-Haus presents its annual real estate market report 2022 on the Baltic States Capitals – Vilnius, Riga and Tallinn. The overview focuses on the office, commercial, storage and residential premises markets, as well as on land plots of each of the capital cities. The overview also includes information related to taxes, which was drawn up by PricewaterhouseCoopers – the audit, accounting and consulting company, while the part with legal information was prepared by the Sorainen law firm.
Full review (PDF): Baltics Real Estate Market Report 2022
The Ober-Haus Lithuanian Apartment Price Index (OHBI), which records changes in apartment prices in five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), went up in April 2022 by 1.6% (in March 2022, an increase of 0.8% was recorded). The overall price level of apartments in the major cities of Lithuania has increased by 21.4% over the last 12 months (in March 2022, the annual increase stood at 21.1%).
In April 2022, apartment sales prices in the capital city increased by 1.7% and reached 2,195 EUR/sqm (+37 EUR/sqm). The increase in Kaunas, Klaipėda, Šiauliai and Panevėžys, was 1.6%, 1.2%, 1.3% and 1.8% respectively and the average price of apartments was 1,530 EUR/sqm (+24 EUR/sqm), 1,446 EUR/sqm (+17 EUR/sqm), 981 EUR/sqm (+12 EUR/sqm) and 954 EUR/sqm (+16 EUR/sqm) respectively.
In April 2022, apartment prices in all major cities of the country rose year-over-year by 22.6% in Vilnius, 23.0% in Kaunas, 17.7% in Klaipėda, 17.2% in Šiauliai and 15.4% in Panevėžys.
“Compared to the indicators last year, the country’s housing market activity has over the past few months declined, but given the extremely tense geopolitical situation and challenges to the country’s economy, the overall activity level remains relatively high. The results in April show that the majority of potential home buyers respond calmly to global events and proceed with the property purchase. The sufficiently high activity of the housing market supports a further price increase in the country’s major cities.
According to the State Enterprise Centre of Registers, the total number of apartment sales in Lithuania in April 2022 was by 21% lower than in April 2021. Looking at the performance of the apartment segment in the past two months, the indicators have returned to the 2019 levels. Meanwhile, the increase in apartment sales prices has been recorded in all apartment segments in the major cities, but the increase in the prices of newly built apartments has been more prominent. For example, in April this year, prices of newly built apartments in Vilnius, Kaunas and Klaipėda increased 2-3 times faster than those of older apartments. The price increase of new apartments in the primary market is visible both in terms of the number of recorded transactions and the expectations of developers. Developers increase the prices of the apartments still available in the completed projects or projects in progress at a rate of 5-10% per month Meanwhile the prices of apartments in the planned projects are at least by one third higher than a year ago.
Serious challenges in the construction sector are forcing developers to radically review the pricing of home sales in the planned projects in order to make them cost-effective. However, the success of implementation of these projects will depend not only on the expectations of developers, but also on the capacities of buyers. It seems that the next half of the year will show if the majority of the buyers are willing to pay a much higher price for a new home than before. It is likely that the current and future economic challenges may reduce the potential of some of the buyers and encourage them consider the possibilities of buying older or new but less attractive residential properties,” Raimondas Reginis, Research Manager for the Baltics at Ober-Haus, said.
The value of the Ober-Haus Lithuanian Apartment Price Index (OHBI), which records changes in apartment prices in five major cities in Lithuania (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.8% in March 2022 (8% growth in spring 2022). Apartment sales prices in the major cities have increased by 21.1% over the past 12 months (22.6% annual growth in February 2022).
In March 2022, apartment sales prices in Lithuania’s capital increased by 0.8% and the average price per square meter stood at EUR 2,158 (+16 EUR/sqm). Apartment prices increased by 0.7%, 1.1% and 0.7% in Kaunas, Klaipėda and Panevėžys respectively, and the average price per square meter increased to EUR 1,506 (+11 EUR/sqm), EUR 1,429 (+15 EUR/sqm), and EUR 938 (+7 EUR/sqm) respectively. Apartment prices in Šiauliai did not change during the month and the average price per square meter remained at EUR 969.
Year-on-year (March 2021–2022) apartment prices increased in all the country’s major cities: 22.2% – in Vilnius, 23.1% – in Kaunas, 18.0% – in Klaipėda, 16.6% – in Šiauliai and 15.3% – in Panevėžys.
“The results of March this year show that the Lithuanian real estate market has somewhat calmed down. According to the State Enterprise Centre of Registers, the total number of apartments sold in Lithuania in March was 6% lower than in March 2021. Meanwhile, the number of apartment purchase transactions registered in buildings older than two years was 10% lower this March compared to March 2021. This is evidence that the war in Ukraine has affected activity in this segment of the market, because some potential buyers decided not to buy homes and to wait until the situation is calmer. Looking at the historical data, the overall activity in the apartment market in the country in March remained at a very high level, but fell below the record levels of 2021. As the war continues, home buyers are likely to remain cautious and take a slower than usual decision to purchase residential property. The results of the next few months will give a better indication of buyers’ intentions.
The slowing rate of increases in apartment prices in the country’s major cities in recent months also shows that the market is already in a more stable situation than, for example, in 2021. Despite the deteriorating economic outlook due to the war, residential sellers remained calm and did not substantially adjust their prices. However, we notice that it is currently easier for buyers to negotiate a better price. If in the past year sellers tried to sell their homes at prices above the usual high prices without any negotiation, it is now much easier to persuade such sellers to reduce their inflated expectations,” Raimondas Reginis, Market Research Manager for the Baltics at Ober-Haus, said.
The value of the Ober-Haus Apartment Price Index in Lithuania, which records changes in apartment prices in the five main cities of Lithuania (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), rose by 0,8% in February 2022 (growth in January 2022 was 1.6%). In general, the prices for apartments in the main Lithuanian cities have increased by 22.5% over the last 12 months (annual growth in January 2022 was 22.6%).
In February 2022, apartment purchase prices grew by 0.9% in the capital city and the average price per square metre reached €2.142 (+€20/m²). In February, Kaunas, Klaipėda, Šiauliai and Panevėžys recorded increases in apartment prices of 0.8%, 0.4%, 0.9% and 0.4% respectively and the average price per square metre increased to €1.495 (+€11/m²), €1.414 (+€6/m²), €965 (+€9/m²) and €931 (+€4/m²).
The annual growth (February 2022 compared to February 2021), in the sales prices of apartments, increased in all the main cities of the country: 23.9% – in Vilnius, 23.7% – in Kaunas, 18.6% – in Klaipėda, 19.3% – in Šiauliai and 17.2% – in Panevėžys.
“We continued to record increases in apartment sale prices in the main cities of the country, but Russia’s invasion of Ukraine, which started on 24 February raises many questions regarding the future prospects of the development of our economy and the individual sectors of industry. The Lithuanian real estate market is no exception. Unsurprisingly, the latest available data does not show the impact of the changing geopolitical situation on the real estate market.
According to the data of the State Enterprise Centre of Registers, the total number of apartments sold in Lithuania in February this year was 6% higher than in February 2021. It is particularly important to single out apartment transactions according to the year of construction, as these data help define the general market situation in more detail. For instance, in February this year, a relatively large number of apartment transactions for newer constructions (not older than 2 years old), were registered in Vilnius and this was 30% higher than the monthly average registered in 2021. Meanwhile, this February, the number of registered acquisition transactions involving apartments in older buildings, was 6% smaller than a year ago. The total activity level of the apartment market in the capital city however, was high, and reflects the registration of purchase and sale agreements of newly constructed apartments, the acquisition of which was agreed on much earlier (2020-2021).
As the proportion of newly constructed apartments in other main cities is considerably smaller than in Vilnius, the total index of market activity is not as dependent on the number of apartment transactions concluded in new projects. For example, Šiauliai and Panevėžys recorded a decrease in transactions amounting to 32% and 16% respectively in February this year when compared to February 2021.
At the end of February and the beginning of March, we could see that buyers reacted differently to the rapidly changing geopolitical and economic situation. Some buyers postponed or cancelled their decision to buy an apartment. It is difficult to evaluate how the mood of buyers will change, now, following the events in Ukraine. We will have a clearer picture when we see the data on the housing market activity for March. Therefore, at the moment, any forecasts of the development of housing prices are hardly possible. Due to the lack of statistical data and the unpredictability of the geopolitical situation itself, there is, as yet, no firm basis for analysis,” noted Raimondas Reginis, Head of Market Research for Baltic Countries at Ober-Haus.
With the start of the war in Ukraine, we want to help the war refugees arriving in Lithuania, so we share relevant information that will help to know the most important things upon the arrival.
Relevant information
Embassy of Ukraine in Lithuania
Website: https://ua.mfa.lt
Address: Teatro g.4, Vilnius
Email address: emb_lt@mfa.gov.ua
Tel. No.: +370 5 212 1536
Vilnius City Municipality
Website: www.vilnius.lt
Address: Konstitucijos pr. 3, Vilnius
Email address: pagalbaukrainai@vilnius.lt
Tel. No.: 1664
Migration Department
Website: www.migracija.lrv.lt
https://migracija.lrv.lt/lt/naudinga-informacija/ukraina-ukrayina-ukraina-ukraine
Migration Department hotline: +370 5 271 7112 (7.30-21 every day)
General information on life in Lithuania: https://www.renkuosilietuva.lt/
Information on child rights: https://vaikoteises.lt/
Relevant information of the Government of the Republic of Lithuania: ltua.lt
Accommodation
Strong Together (accommodation services for the citizens of Ukraine and their family members)
Website: https://stipruskartu.lt/
24-hour hotline for accommodation issues: 1827 or +370 677 22222
Email: mes@stipruskartu.lt
Medical care institutions
https://www.manodaktaras.lt/klinika/
Humanitarian aid
Lithuanian Red Cross (humanitarian aid, information for family reunion)
Website: https://redcross.lt
Email: info@redcross.lt
Tel. No.: +370 5 212 7332
Caritas of Vilnius Archdiocese (humanitarian aid)
Website: www.caritas.lt
Address: Odminų g. 12, Vilnius
Email: kulturunamai@vilnius.caritas.lt
Tel. No.: +370 673 24 225
Save the Children (assistance for children and pregnant women)
Address: Vytenio g. 39, Vilnius
Email: informacija@savethechildren.org
Website: https://gelbekitvaikus.lt/
Tel. No.: +370 5 261 0815
Maltese Aid Service (humanitarian aid)
Website: https://maltieciai.lt
Address: Gedimino per. 56 B, Vilnius
Tel. No.: +370 5 249 73
Food Bank (Assistance with food)
Website: https://www.maistobankas.lt/
Address: Vytenio g. 54, Vilnius
Email: info@maistobankas.lt
Tel. No.: +370 686 44244
Work in Lithuania – Employment Service
Studies and learning in Lithuania
Transport
https://www.autobusubilietai.lt/
https://www.vilniausviesasistransportas.lt/
https://www.traukiniobilietas.lt/portal/
Translation services:
С началом войны в Украине мы хотим помочь военным беженцам, прибывающим в Литву, поэтому делимся актуальной информацией, которая поможет им по прибытии.
Актуальная информация
Посольство Украины в Литве
Сайт: https://ua.mfa.lt
Адрес: Вильнюс, ул. Театро, 4
Эл. почта: emb_lt@mfa.gov.ua
Тел.: +370 5 212 1536
Вильнюсское городское самоуправление
Сайт: www.vilnius.lt
Адрес: Вильнюс, пр. Конституцийос, 3
Эл. почта: pagalbaukrainai@vilnius.lt
Тел.: 1664
Департамент миграции
Сайт: www.migracija.lrv.lt
https://migracija.lrv.lt/lt/naudinga-informacija/ukraina-ukrayina-ukraina-ukraine
«Горячая линия» Департамента миграции:: +370 5 271 7112 (7.30-21 час. ежедневно)
Общая информация о проживании в Литве: https://www.renkuosilietuva.lt/
Информация о правах ребенка: https://vaikoteises.lt/
Актуальная информация Правительства Литовской Республики: ltua.lt
Размещение
Stiprūs kartu («Сильные вместе») (Оказываются услуги по размещению гражданам Украины и членам их семей)
Сайт: https://stipruskartu.lt/
«Горячая линия» по расселению, действующая круглосуточно: 1827 или +370 677 22222
Эл. почта: mes@stipruskartu.lt
Медицинские учреждения
https://www.manodaktaras.lt/klinika/
Гуманитарная помощь
Литовский Красный Крест (гуманитарная помощь, информация, восстановление семейных связей)
Сайт: https://redcross.lt
Эл. почта: info@redcross.lt
Тел.: +370 5 212 7332
Каритас Вильнюсской Архиепископии (Гуманитарная помощь)
Сайт: www.caritas.lt
Адрес: Вильнюс, ул. Одминю, 12
Эл. почта: kulturunamai@vilnius.caritas.lt
Тел.: +370 673 24 225
Спасем детей (Помощь детям и беременным женщинам)
Адрес: Вильнюс, ул. Витянио, 39
Эл. почта: informacija@savethechildren.org
Сайт: https://gelbekitvaikus.lt/
Тел.: +370 5 261 0815
Служба поддержки Мальтийского ордена (гуманитарная помощь)
Сайт: https://maltieciai.lt
Адрес: Вильнюс, пр. Гедимино, 56 Б,
Тел.: +370 5 249 73
Продовольственный банк (помощь продуктами)
Сайт: https://www.maistobankas.lt/
Адрес: Вильнюс, ул. Витянио, 54
Эл. почта: info@maistobankas.lt
Тел.: +370 686 44244
Работа в Литве – Служба занятости
Учеба в Литве
Транспорт
https://www.autobusubilietai.lt/
https://www.vilniausviesasistransportas.lt/
https://www.traukiniobilietas.lt/portal/
Услуги по переводу
http://magistrai.lt/
In 2021, the Lithuanian real estate company Ober-Haus achieved a turnover of EUR 5.63 million excluding VAT, which is a 32 percent increase on 2020, when the company’s revenue was EUR 4.24 million. Last year’s turnover is the largest in the history of Ober-Haus since 1998.
“Active market undoubtedly contributed to such growth, but the dedicated work of a large and professional team of the company and the organizational culture which fosters strong human values were most important factors. This is probably why we have the lowest staff turnover in the real estate services sector, which is a great strategic advantage,” Audrius Šapoka, Managing Director of Ober-Haus, said.
In 2021, Ober-Haus provided almost 14,000 real estate services in Lithuania. Last year, the company achieved more than 800 residential and commercial real estate sales and 500 lease transactions. We performed a record number of valuations throughout this period—more than 12,400 asset and business valuation reports were prepared, providing valuation expertise and consultancy for our clients.
“Last year’s company growth was determined by the excellent results of our asset valuation activities and productivity, advising developers in the development of new housing project concepts, including, development and implementation of their realization strategies. Also last year saw a significant increase in sales of commercial real estate objects for investment, especially land plots and sites suitable for conversion,” Šapoka noted.
Ober-Haus has been operating in Lithuania since 1998 and has offices in Vilnius, Kaunas, Klaipėda, Palanga, Šiauliai, Panevėžys and Druskininkai. More than 140 professionals are actively creating a competitive advantage in the real estate market. The package of services provided by the company consists of the valuation of real and movable property and business, intermediation in the purchase, sale and lease of real estate, property management and market research.
The value of the Ober-Haus Apartment Price Index in Lithuania, which records changes in apartment prices in the five main cities of Lithuania (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), rose by 1.1% in December 2021 (growth in November 2021 was 1.7%). In general, apartment prices in the main Lithuanian cities have increased by 22.4% over the last 12 months (annual growth in November 2021 was 22.2%). The average annual growth in apartment prices in 2021 was 14.2% (January-December 2021 compared to January-December 2020).
In December 2021, apartment sales prices grew by 1.1% in the capital city and the average price per square metre reached EUR 2,087 (+EUR 22/m²). In December, Kaunas, Klaipėda, Šiauliai and Panevėžys recorded increases in apartment prices of 1.3%, 1.2%, 0.5% and 0.9% respectively and the average price per square metre increased to EUR 1,461 (+ EUR 19 /m²), EUR 1,393 (+ EUR 16 /m²), EUR 930 (+ EUR 5/m²) and EUR 915 (+ EUR 8 /m²) respectively.
Annual growth (December 2021 compared to December 2020) in the sales prices of apartments increased in all the main cities of the country: 23.3% – in Vilnius, 23.0% – in Kaunas, 19.4% – in Klaipėda, 20.8% – in Šiauliai and 21.2% – in Panevėžys.
“Data of December 2021 confirmed what we observed throughout last year – stable rapid growth in apartment prices throughout the country. Last year, buyers were purchasing various types of housing like never before and spent a record amount of money to this end. It is therefore no surprise that we recorded fast growth in housing prices and that the 14.2% average annual apartment price growth rate in the main cities was truly considerable. The last time average annual apartment price growth in Lithuania’s main cities was faster was back in 2004 (25.7%), 2005 (47.8%), 2006 (36.9%) and 2007 (26.9%). Meanwhile, in the period from 2016 to 2020, the growth of apartment sales prices was much more moderate and stood at 3.3–5.7%.
The major factors contributing to the heating up of the housing market include the rapidly rising incomes of residents, low mortgage interest rates, lack of new housing supply, and desire to protect savings in a high inflation environment by investing in real estate, these will remain relevant in 2022 as well. However, this year new factors which might both slow down activity in the market and the pace of growth in housing prices may emerge. The first reason is the growing unfavourable geopolitical situation. The increasingly tense and changed economic relationship between Lithuania and Belarus, and China might have a negative impact on Lithuania’s economy and lead to a lowering of residents’ expectations regarding their financial situation and the prospects of the country’s economic development. Secondly, following the extremely steep jump in housing prices in 2021 and the evidently higher price level which caused a decrease in the housing affordability indicator, one might expect a relatively more moderate pace of price growth and reduced optimism of market participants than before. The rapid growth in housing prices was mainly contributed to by the positive expectations which seized the housing market last year. Seeing the stable and fast-growing prices sellers were determined to sell for even higher prices than the actual market price at the time. For this reason, in 2022, we might expect a more moderate atmosphere in the housing market and slower growth in real estate prices than the previous year”, Raimondas Reginis, Head of Market Research for Baltic Countries at Ober-Haus, noted.
The Ober-Haus Lithuanian apartment price index (OHBI), which records changes in apartment prices in the five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 1.7% in November 2021 (1.6% increase was recorded in October 2021). The annual apartment price growth in the major cities of Lithuania was 22.2% (the annual apartment price growth in October 2021 was 20.8%).
In November 2021 apartment prices in the capital grew 1.8% with the average price per square meter reaching EUR 2,065 (+37 EUR/sqm). Apartment prices in Kaunas, Klaipėda, Šiauliai and Panevėžys grew by 1.9%, 1.5%, 1.4% and 0.7% respectively with the average price per square meter reaching EUR 1,442 (+28 EUR/sqm), EUR 1,377 (+21 Eur/sqm), EUR 925 (+13 EUR/sqm) and EUR 907 (+7 EUR/sqm).
In the past 12 months, the prices of apartments increased in all major cities: 23.6% in Vilnius, 21.8% in Kaunas, 19.0% in Klaipėda, 20.8% in Šiauliai and 20.1% in Panevėžys.
“This year, buyers faced an especially unfavourable situation in the country’s housing market and its main cities which determined that apartment prices continued to grow. First of all, the high customer activity has dramatically reduced the supply of apartments in the big cities, in response to which developers have noticeably increased the prices of apartments offered for sale. Those who are looking for cheaper alternatives, must look at older construction apartments where prices are growing slightly slower in the main cities compared to the prices of newly built apartments. In the context of a fast-growing economy with almost double-digit inflation and the growing apartment prices, it looks like customers are tending to buy housing for their own use or for investment purposes as soon as possible.
Apart from the factors noted above, the housing market is also promoted by quite attractive borrowing opportunities which traditionally is one of the major driving forces of the housing market. According to the latest data of the Bank of Lithuania, the average annual interest rate of new housing loans in October 2021 in Lithuania was 2.07% and was the lowest interest rate since the end of 2017. For this reason, it is no surprise that the volumes of new housing loans are vast. In the ten first months of 2021, the number of new (real) mortgages issued in Lithuania amounted to EUR 1.6 billion or 46% more than in the same period in 2020, and 47% more than in the same period in 2019.
It could be stated that all the factors that have a direct impact on the housing demand have aggregated in one place and provoked the steep growth in prices. Apart from the reasons mentioned above, the demand for housing is increasing due to growing wages, internal and external migration to the main cities, and positive expectations of residents. The worst thing for buyers is that no new factors which could limit the growth of housing prices in the near future can be seen”, Head of Market Research for Baltic Countries at Ober-Haus Raimondas Reginis noted.
Full review (PDF): Lithuanian Apartment Price Index, November 2021