A symbolic decrease in the price of apartments in Kaunas and Klaipėda in May

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), remained unchanged in May 2020 (0.1% increase was recorded in April 2020). The annual apartment price growth in the major cities of Lithuania was 6.3% (the annual apartment price growth in April 2020 was 6.8%).

In May 2020 apartment prices in Vilnius and Šiauliai grew by 0.1% and 0.3% respectively with the average price per square meter reaching EUR 1,641 (+1 EUR/sqm) and EUR 755 (+3 EUR/sqm). Meanwhile in Kaunas and Klaipėda was recorded 0.1% price decrease with average price per square meter reaching EUR 1.167 and EUR 1.139 (-1 EUR/sqm). In Panevėžys no price changes were recorded and average apartment price remained the same as in April – EUR 738.

In the past 12 months, the prices of apartments grew in all major cities: 6.4% in Vilnius, 5.9% in Kaunas, 4.6% in Klaipėda, 8.9% in Šiauliai and 9.2% in Panevėžys.

The latest data on the apartment segment show that the market continues to operate in the waiting mode. The number of the registered transactions for apartment sales in May 2020 decreased by 37% in Lithuania compared to the monthly average last year. Some of the potential buyers who have withdrawn from the market are waiting for a more stable economic situation in the country and more certainty concerning the situation with the virus, while the rest of the buyers are expecting a fall in the housing prices and opportunities to take advantage of the situation.

“If some buyers have withdrawn from the market for personal financial reasons or poorer outlook in the economic future, other potential buyers are willing to wait for lower prices and are trying to push the home sellers further. The buyers who are currently planning to buy residential properties often suggest to sellers to reduce their prices by as much as one tenth in order to sell. However, the vast majority of sellers are reluctant to accept such offers today and the negotiations are often disrupted or a marginal discount is offered on the sales price like in previous years,” Raimondas Reginis, Research Manager for the Baltics at Ober-Haus, said.

As a result, sellers of residential property still feel strong enough and are reluctant to take any hasty decisions regarding significant reduction of sales prices. “The further direction of the price curve for apartments will depend on the extent to which the uncertainty due to the virus will continue (number of cases of infection, prospects for the tourism and accommodation sector, financing housing conditions, etc.) and the pace at which the economy will recover. This will determine the further mood of potential buyers who have withdrawn from the market and the specific decisions on purchasing housing. If the activity in the apartment sector in the country’s major cities starts to increase in the second half of this year, it will give additional optimism for the whole market and the likelihood of significant negative changes in sales prices will be significantly reduced,” Reginis noted.

Full review (PDF): Lithuanian Apartment Price Index, May 2020

Latest news

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

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

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

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
Mandatory cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
Functional cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in. Functional cookies are currently unused.
Statistical cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously. Statistical cookies are currently unused.
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
Allow all Deny All

Mail sent!

This site is registered on wpml.org as a development site.