Unfading activity of housing market and rapid price growth at the beginning of the year

Metų pradžioje neblėstantis būsto rinkos aktyvumas ir spartus kainų augimas

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 1.4% in January 2021 (0.9% increase was recorded in December 2020). The annual apartment price growth in the major cities of Lithuania was 4.9% (the annual apartment price growth in December 2020 was 4.1%).

In January 2021 apartment prices in the capital grew 1.2% with the average price per square meter reaching EUR 1,714 (+21 EUR/sqm). Apartment prices in Kaunas, Klaipėda, Šiauliai and Panevėžys in November grew by 1.4%, 1.3%, 2.7% and 2.9% respectively with the average price per square meter reaching EUR 1,204 (+16 EUR/sqm), EUR 1,182 (+16 Eur/sqm), 791 (+20 EUR/sqm) and EUR 776 (+21 EUR/sqm).

“Following a break in the growth of apartment prices in the middle of 2020, the end of the year saw a faster price growth in the main Lithuania’s cities again, and this January prices of apartments increased further. The firm financial basis of potential buyers, attractive lending conditions, positive expectation of most residents and the flow of positive news in the housing market have helped this particular real estate segment to develop a certain kind of resistance in this unsettled period.

Faster growth in prices comes as no surprise since the data on the activity of the housing market shows a strong internal demand for housing country-wide. Although, based on the data of the SE Centre of Registers, sales of apartments in Lithuania were 11% less this January compared to January 2020, it was the second best January since 2007 in terms of results. Meanwhile, the sales of private houses in Lithuania were extremely buoyant this January – it was the best January result since 2007.

There is a particularly big demand for housing in the rapidly growing capital city of Lithuania. Its initial market of new apartments demonstrated record high results of advance agreements on the purchase of new apartments this January. Non-declining demand for new housing and the falling number of unsold apartments in the country’s larger cities provide favourable conditions for the growth of prices of both new and old construction apartments,” Raimondas Reginis, Research Manager for the Baltics at Ober-Haus, said.

Full review (PDF): Lithuanian Apartment Price Index, January 20201

Latest news

All news
The 2023 annual apartment price increase stood at 1.7% and the average annual price increase – at 8.2%
2024-01-15

The 2023 annual apartment price increase stood at 1.7% and the average annual price increase – at 8.2%

The Ober-Haus Apartment Price Index (OHBI) in Lithuania, which records changes in apartment prices in five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.5% in December 2023. Overall, the apartment prices in the major cities of Lithuania have increased by 1.7% over the last 12 months. The average annual apartment price increase in 2023 (January-December year-on-year) stood at 8.2%. In December 2023, apartment sales prices in Vilnius, Kaunas, Klaipėda and Panevėžys increased by 0.4%, 0.6%, 0.8% and 0.8% respectively and the average price per square meter in these cities was EUR 2,575 (+11 EUR/sqm), EUR 1,736 (+10  EUR/sqm), EUR 1,640 (+13 EUR/sqm), and EUR 1,081 (+8 EUR/sqm). In Šiauliai, apartment sales prices decreased by 0.7% and the average price per square meter was EUR 1,098 Eur (-8 EUR/sqm). Apartment prices rose year-on-year in December 2023 in all major cities of the country: 1.1% – in Vilnius, 2.7% – in Kaunas, 2.4% – in Klaipėda, 2.4% – in Šiauliai and 2.0% – in Panevėžys “Despite the decrease in the number of sales transactions in the Lithuanian housing market by 14% for two consecutive years, the country avoided a decline in the sale prices in 2023. In the…

Price expectations continue to hold despite declining housing market activity
2023-12-20

Price expectations continue to hold despite declining housing market activity

The Ober-Haus Apartment Price Index (OHBI) in Lithuania, which records changes in apartment prices in five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.1% in November 2023 (the price index in October 2023 decreased by 0.1%). Overall, the apartment prices in the major cities of Lithuania have increased by 1.2% over the last 12 months (the annual growth in October 2023 was 1.1%). In November 2023, apartment sales prices in Kaunas, Klaipėda and Šiauliai increased by 0.2%,  0.5% and 0.2% respectively and the average price per square meter in these cities was EUR 1,726 (+4 EUR/sqm), EUR 1,6270 (+8 EUR/sqm) and EUR 1,106 (+3 EUR/sqm). In Panevėžys, apartment sales prices decreased by 0.1% and the average price per square meter was EUR 1,073 (-1 EUR/sqm). In Vilnius, apartment sales prices remained unchanged and the average price per square meter stood at EUR 2,564. Apartment prices rose year-on-year in November 2023 in all major cities of the country: 0.8% – in Vilnius, 1.9% – in Kaunas, 1.3% – in Klaipėda, 2.9% – in Šiauliai and 1.5% – in Panevėžys. “Unlike housing market activity, which suffered another downturn in November, price expectations of the population remain quite optimistic.…

Apartment Developers’ Investments Have Been Shrinking
2023-11-16

Apartment Developers’ Investments Have Been Shrinking

The Ober-Haus Apartment Price Index for Lithuania (OHBI), which captures changes in apartment prices in the five largest Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), decreased by 0.1% in October 2023 (unchanged from September 2023). The overall level of apartment prices in Lithuania’s major cities grew by 1.1% over the last 12 months (an annual growth of 2.6% was recorded in September 2023). In Vilnius, Kaunas and Panevėžys, during October 2023, the sales prices of apartments decreased by 0.1%, 0.1% and 0.4% respectively, and the average price per square metre was EUR 2,565 (-€3/m²), EUR 1,722 (-€2/m²) and EUR 1,074 (-€4 /m²). However, in Klaipėda in October, the average price per square metre actually rose by 0.3% to EUR 1,619 (+€6/m²). In Šiauliai, the average price per square metre remained unchanged during the month at EUR 1,103. During the year (October 2022 to October 2023), apartment prices grew in all major cities of the country: in Vilnius – by 0.8%, in Kaunas – by 1.8%, in Klaipėda – by 0.7%, in Šiauliai – by 3.4%, and in Panevėžys – by 1.9%. The significant downward adjustment in housing market activity and the cessation of rising sales prices are clearly affecting…

All news

This website uses cookies. You can confirm your acceptance by clicking the "I Agree" button or by continuing to browse. I agree

Mail sent!

This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.