Despite the stability in the housing market, the outlook remains negative

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 0.2% in May 2023 (the price index in April 2023 increased by 0.3%). The apartment prices in the major cities of Lithuania have increased by 12.3% over the last 12 months (the annual growth in April 2023 was 14.0%).

In May 2023, apartment sales prices in Klaipėda and Šiauliai decreased by 0.1% and 0.5%, respectively and the average price per square meter in these cities was EUR 1,606 (-1 EUR/sqm) and EUR 1,077 (-6 Eur/sqm). In Vilnius, Kaunas and Panevėžys, apartment sales prices increased by 0.2%, 0.5% and 0.3% respectively, and the average prices per square meter stood at EUR 2,556 (+6 EUR/sqm), EUR 1,719 (+9 EUR/sqm) and EUR 1,057 (+3 Eur/m²) respectively.

Apartment prices rose year-on-year in May 2023 in all major cities of the country: 14.7% – in Vilnius, 10.2% – in Kaunas, 10.0% – in Klaipėda, 5.8% – in Šiauliai and 6.9% – in Panevėžys.

“The latest results in both primary and secondary housing market activity show that the Lithuanian housing market has remained fairly stable recently, however, at least in the short term, the overall outlook is negative. For example, following more active months of March and April this year, a slump was recorded again in the activity in the secondary apartment market in May. According to the State Enterprise Centre of Registers, in May 2023 nearly 2,000 older apartments were purchased in Lithuania, or 12% less than in April 2023 and 19% less than in May 2022. Meanwhile, the overall sales volumes in the primary apartment market continue to remain at low levels. According to Ober-Haus, in January-May this year, compared to the average indicator in 2022, sales volumes were by 22% lower in Vilnius, 17% – in Kaunas and 34% – in Klaipėda. The activity rates in May in these cities did not show a positive trend either.

The situation is similar with respect to apartment sales prices. Once again, small positive or negative changes have been recorded in the sales prices in the country’s major cities, indicating continued price stagnation. With the housing market activity remaining at a relatively low level or even declining, it is increasingly likely that we will see more and more negative changes in apartment sales prices as the year progresses. In the environment of rising mortgage rates, homebuyers remain extremely cautious, while most home sellers are still reluctant to offer real discounts,” noted Raimondas Reginis, Head of Market Research for the Baltic countries at Ober-Haus.

 

Latest news

All news
Ober-Haus Celebrates 25 Years: How Has the Property Market Changed in a Quarter of a Century?
2023-11-07

Ober-Haus Celebrates 25 Years: How Has the Property Market Changed in a Quarter of a Century?

In 1998, the Lithuanian real estate market was characterised by a lack of housing, poor credit conditions and an underdeveloped commercial real estate sector. Over the last 25 years, the number of apartments for sale has increased more than 10-fold, housing market activity has almost quadrupled, lending rates have fallen from double to single digits, and modern office buildings and shopping malls are now numbering in the hundreds – that’s the picture according to the Ober-Haus Real Estate Market Review 1998–2023, conducted to celebrate the company’s 25th anniversary. The Year 2000 Marked the Beginning of the Creation of the Lithuanian Real Estate Market The years 1998–2000 can be considered as the period when the real estate sector in Lithuania began to evolve. Due to the absence of credit services, the Lithuanian population was mostly only able to purchase a home using their own funds, and commercial construction with the intention to sell or lease was in its infancy. And so, 25 years ago, investors were developing single apartment blocks, business/office assets and shopping centres, where any new development for sale or rent was regarded as a significant event in the real estate market. The Russian economic crisis, which began in…

Buyers Show No Interest in Overpriced Housing
2023-10-24

Buyers Show No Interest in Overpriced Housing

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), remained unchanged in September 2023 (August 2023 figures had shown 0.4% growth). The overall level of apartment prices in Lithuania’s major cities grew by 2.6% over the last 12 months (an annual growth of 4.9% in August 2023). In September 2023, Klaipėda, Šiauliai and Panevėžys recorded 0.2%, 0.3% and 0.4% growth respectively, and the average price per square metre rose to EUR 1,613 (+3 €/m²), EUR 1,103 (+3 €/m²) and EUR 1,078 (+4 €/m²). Meanwhile, in Vilnius and Kaunas, the average price per square metre decreased by 0.1% month-on-month to 2.568 Eur (-3 €/m²) and 1.724 Eur (-2 €/m²) respectively. Over the year (September 2023 as compared to September 2022), apartment prices grew in all major cities of the country: in Vilnius – by 2.6%, in Kaunas – by 3.2%, in Klaipėda – by 1.6%, in Šiauliai – by 3.7%, and in Panevėžys – by 2.5%. The stagnation period in the Lithuanian housing market continues. Although the market activity indicators do not show any signs of improvement, the majority of home sellers have not…

Office sublease: thousands of invisible square metres
2023-10-02

Office sublease: thousands of invisible square metres

In the office segment, the phenomenon of sublease – the transfer of part of a company’s leased premises to a third party – became popular during the pandemic and has remained since. The market of subleased property is usually not included in the official statistics published by real estate agencies. According to OBER-HAUS, current tenants of Class A and Class B+ business centres in Vilnius alone could be offering several thousand or even tens of thousands of square metres of space for sublease. Sublease is usually simply understood as renting space not directly from the owner or manager of a business centre, but from an existing tenant established and operating in the business centre. The principle of sublease itself existed long before the pandemic, but has only become more popular in recent years as businesses switched to remote or hybrid work, consequently, the amount of space required for their operations has decreased. OBER-HAUS estimates that since the beginning of the pandemic, the average office space in Vilnius has decreased by about 30%. In other words, companies entering into new contracts today are renting office space by almost a third smaller than a few years ago. However, office lease contracts are…

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.