Robust spring in Druskininkai housing market

More than a year has passed since the start of the pandemic and the lockdown in Lithuania. This has affected all areas of our lives and made adjustments to the priorities of the population considering a new home. The need for more spacious homes has increased, buyers chose houses over apartments or opted for a second home. A home in the natural surroundings in the countryside or in a resort town became a more common purchase.

“The demand for a second home has revived the real estate market in the regions. Since last year, homes in picturesque locations have been actively purchased and investment in real estate in resort towns of Lithuania has been made,” Ričardas Klincaras, a real estate expert at Ober-Haus, said.

The seaside region was the first to see record numbers of transitions. At the time, only a small number of investors and buyers took interest in small resort towns, such as Birštonas and Druskininkai. “However, there was more and more visible activity in the real estate market in these resort towns, especially in Druskininkai. The spring therefore started robustly in Druskininkai,” Klincaras noted.

March this year was exceptional for Druskininkai. According to the State Enterprise Center of Registers, 36 purchase and sale transactions for apartments and 7 for houses were recorded in Druskininkai in March, while in February, 12 apartments and 2 houses were sold.  According to the Ober-Haus expert, the housing market in Druskininkai is picking up speed with continuing activities of buyers in April.

As recorded by the State Enterprise Center of Registers, 11% more apartments and houses were sold in Druskininkai during Q1 2021 than during the same period in 2020.

According to Ober-Haus, the prices of apartments in Druskininkai increased by 2.4% per year (in March 2021 compared to March 2020). In March alone (in March 2021 compared to February 2021) the prices of apartments increased by 0.8%. At the same time last year, the lockdown not only slowed down the apartment price increase, but also negative changes were recorded – in March 2020, a decrease of 0.2% was recorded.

“The city is investing heavily each year by building new attractions. Recently, a sports training center has been opened, a culture center is being built and new investment in Karolis Dineika Park has been attracted. As the resort attractiveness grows, more buyers purchase real estate in Druskininkai not only as a second home for recreation, but also as an investment with a prospect of the price increase in the future,” Klincaras observed.

Most of the apartments sold in Druskininkai are located in the central part of the town. “A typical buyer of such a home is a 45–60-year-old resident of Vilnius, Kaunas, Marijampolė or Alytus, who uses his own savings or a small amount of borrowed money. Residents of Druskininkai are more active in purchasing property further away from the center usually with a mortgage,” Klincaras said.

“We also communicate with foreigners who know Druskininkai well for its spas and consider purchasing their own holiday home. Although their activity is not as high as 6–8 years ago, but some of them are still interested and we manage to attract some of them,” Klincaras explained.

There is a lack of supply of quality 35–45 sqm apartments in the primary market projects in Druskininkai and such apartments are currently hardly available. According to the Ober-Haus expert, this has not passed unnoticed by potential investors, who respond to the changing market situation and intensively absorb not only empty land plots suitable for building apartment buildings, but also purchase unfinished buildings or buildings that need reconstruction with an aim of developing apartment buildings.

Interest in individual and semi-detached houses, according to the number of transactions, equals to that in apartments and demand is noticeably growing, the only problem is the lack of supply. “Families from cities who can work remotely and plan to spend half their working week or to move to Druskininkai permanently are looking for such properties,” Klincaras said. These buyers opt for the new central part of the city (Baltašiškė) with its well-developed infrastructure and convenient access.

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.