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Read the 2020 real estate review here: The “fun roller coaster” of the real estate market: developer hysteria has been replaced by euphoria, but pessimism has not disappeared from the faces of the builders
According to Raimondas Reginis, Head of Market Research for the Baltic States of the real estate services company Ober-Haus, the epidemiological situation at the end of 2020 should be taken into account when talking about the housing market in 2021. He believes that it is expected the housing market to be noticeably slower again in the first half of 2021.
“The record number of infections in Lithuania and the introduction of the second quarantine may again lead to a deterioration in the expectations of the population due to its financial situation and the development prospects of the country’s economy. It would also respond to housing market activity and the growth rate of house prices, “he said.
The market should stop
R. Reginis hopes that by mid-2021 the general epidemiological situation will improve and become clearer. Then, starting in the second half of next year, the housing market will have a much more solid base, capable of offsetting the “losses” of the first half.
“Based on these assumptions, we can predict that overall apartment price growth (in the primary and secondary markets) in 2021 will remain positive and will be similar to that of 2020 – between 3 and 4 percent,” he said .
Company photo / Raimondas Reginis
However, R. Reginis doubts that the main apartment market in Vilnius, Kaunas and Klaipėda will maintain sales volumes similar to those registered in 2019 or 2020.
“Looking at the projects presented to the new market and their progress, we still see that the volume of development in Vilnius, Kaunas and Klaipeda is slowing down,” he said.
According to preliminary estimates by Ober-Haus, the actual number of apartments built in 2021 in Vilnius, Kaunas and Klaipėda may be less than in 2020.
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