In May flats became cheaper in Kaunas and Klaipeda

The value of the Lithuanian apartment price index (OHBI) of real estate services company Ober-Haus, which records changes in apartment prices in the five largest cities in Lithuania, did not change in May ( a growth of 0.1% was registered in April). The general level of apartment prices in Lithuanian cities has grown by 6.3% in the last 12 months (annual growth was 6.8% in April).

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According to Ober-Haus, the market continues to live in a waiting state of mind. Number of registered apartment transactions in May, compared to 2019 monthly average, decreased by 37% in Lithuania. Some of the potential buyers who have left the market expect a more stable economic situation in the country and more certainty about the situation caused by the virus, while another part of the buyers who have left the market expect a decrease in the prices of the virus. housing and opportunities to take advantage of this situation.

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“If some buyers withdrew from the market for personal financial reasons or lower expectations for their economic future, then others are determined to lower prices and try to ‘hit’ home sellers themselves. Those buyers, who are currently planning When buying a home, sellers are often offered to reduce the prices of houses for sale by as much as a tenth, however, at least to this day, most sellers are reluctant to accept such offers and negotiations are generally they are discontinued or a small discount is also applied to the selling price in previous years, “says the report Raimondas Reginis, head of market research at Ober-Haus for the Baltic countries.

According to him, the additional direction of the apartment price curve will depend on the degree of uncertainty inherited from the virus: the number of infections, the prospects for the tourism and accommodation sector, the conditions for financing housing, etc. In addition, at what rate will the country’s economy recover.

“This is what will determine the additional mood of potential home buyers who have left the market and the specific decisions regarding home buying. If the activity of the apartment sector in the country’s large cities begins to grow in the second half of this year, it will provide additional optimism for the entire market and the likelihood of noticeable negative changes in sales prices will decrease significantly, “says R. Reginis.

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