The Lithuanian coastal real estate sector did not feel the impact of the crisis: residents are twice as active in buying homes here

Lithuanians are twice as likely to buy homes on the coast

According to Inreal analysts, the real estate market may be said to have recovered too soon, but the trend in buyer activity is becoming clearer. During May, around 20 percent were bought in Vilnius, Kaunas and Klaipeda. more new apartments than in April, but they canceled even 2 more times. No transaction was canceled in the only port city. 13 new apartments were sold in Klaipeda, the same as in April this year. Compared to May 2019, 4 times less.

Ieva Šikšnytė-Brazienė, sales project manager for the Inreal Group, noted in the Delfi 11 program that an average of 20 new housing transactions on the Lithuanian coast have been completed to date in May in five years. This year they were more than double: 55.

“When we talk about the slowdown in home buying, there are segments where you don’t feel it, on the contrary, there is a recovery. There was a lot of talk about farms, second homes.” Statistics show exactly the same: May is almost the twice as active as in the same period last year or even last year, “he said.

According to her, several reasons can be sought. First off, investors who have been buying Vilnius homes for a long time, like an active rental market, are reorienting and looking for higher and more stable returns on the coast, where increasing demand is expected as people goes to Lithuanian resorts en masse due to limited foreign tourism.

A spokeswoman for Inreal adds that the perception of a safe investment has also contributed to the growth of housing transactions: that it will save the money they invested. “

Raimondas Reginis, Head of Market Research for the Baltic States at Ober-Haus, says he believes that the good weather this year will make this year one of the busiest not only for Lithuania, but also for Latvia and Estonia.

“Due to the closed borders, people will not dare to travel to another place this year, we will have internal tourism.” This means that we will travel to Šventoji, Palanga, Neringa, Latvia and possibly Estonia. Interest in the coast is logical ”, says the interlocutor.

According to him, the interest in renting homes in Latvia is huge, also in Lithuania.

“Automatically, if there are potential tenants, then, of course, interest will grow among those who plan to invest. At least I understand that this summer should be good for them. We definitely won’t find lower prices than last year when it comes to vacations, ”said R. Reginis on the show.

Coastal housing – for 50-80 thousand. EUR

Commenting on which coastal city is more favorable for investment, the representative of Ober-haus points out that it is always easier to choose where there is more supply.

“If we take Neringa – Nida, Preila, Juodkrante, Pervalka, there are not many offers and they are expensive enough. In terms of sale prices, this is the most expensive region in Lithuania, prices are extremely high.
As for Palanga, Šventoji, where cheaper options can be found a little further from the sea, the price may be a little lower. At least it is possible to buy a house, say, for 50 thousand. Eur old two-room apartment building. Palanga is still the most active, because there are most of the offers there, “says R. Reginis.

The representative of Inreal affirms that he realizes the tendency to buy lower value homes on the Lithuanian coast. Currently, as notes, the average price of housing – up to 80 thousand. EUR.

“This means that if previously a more expensive property was bought for 150-200 thousand. Eur, now it is recovering and cheaper projects are being sold, which have not been interesting for the market for a long time, in Šventoji, Palanga, in so-called less good lines. This is where the market is most active, “she says.

Instead of living in Bulgaria or Spain, they look around the Lithuanian coast.

Mindaugas Statulevičius, head of the Lithuanian Real Estate Development Association (LNTPA), noted in the program that interest on the Lithuanian coast has grown, transactions are increasing, but not sometimes, but in percentages. He also said that acquaintances were looking for housing abroad, but due to the pandemic, they had to change their plans and look for housing on the Lithuanian coast.

“There are people in my environment who thought they would buy (housing – Delphi) in Bulgaria or Spain, but the flights stopped, they can no longer buy, so they are looking for our coast, in Neringa, Palanga. This activity is very natural and really increases.

Time will tell how much will become a deal: people will be determined to buy property rather than open flights, or they will reconsider their previous decisions to have the opportunity to go on vacation rather than own property on the Lithuanian coast, in a town or a farm. I think that a couple of months does not allow me to draw final conclusions ”, commented M. Statulevičius.

Those seeking cheap housing urge not to lose vigilance

According to him, the real estate prices on the coast do not differ much from last year or earlier this year. M. Statulevičius points out that interesting offers of low-priced housing have appeared on the market this year. There is a wave in the offer of homes by the sea, since those who previously considered selling simpler and less equipped homes or are not doing so now. However, it draws the attention of buyers not to lose vigilance, because it is necessary to look not only at the price, but also at the content.

“Notice to Buyers: Check and see what you’re buying. Go to the place and self-evaluate, because now you have to notice the polished images in the ads, and you’re going to the place, and the reality is different. Buyers must not lose vigilance. “emphasizes M. Statulevičius.

The LNTPA chief points out that there are few new apartment buildings on the coast. Dozens of apartments are built in Neringa a year, in Palanga most of the houses are also built not in the central part of the city, but on the outskirts: cabins or smaller apartments.

“There is not much supply and it does not contribute much to the price. This is not an energy efficient new construction that would require a lot of demand. However, there is a strong component in the place, the coast, so when interest increases, it is natural people hope they can get more, “explains the interlocutor.

In Latvia you can find apartments for 10-15 thousand. EUR

Ober-Haus spokesman R. Reginis says those who are considering buying a home abroad don’t need to look far. Buyers’ interest is still felt on the Latvian coast. According to him, for Lithuanians, Latvia is the closest alternative to vacations and investment.

“Interest on the Latvian coast is the same as a year ago or a few years ago, not that the Lithuanian wave came to Liepaja, Pape or Venstpils and began to buy houses more actively. The choice of housing options it is even wider, especially in terms of the Latvian coast, there are more settlements and villages, perhaps cheaper options can be found, however it will not compare to our Palanga where Latvian cities or towns lack infrastructure and entertainment The difference is very big, “says R. Reginis.

Last year in Liepaja it was possible to find apartments for only 10,000. Eur, but, according to R. Reginio, these examples do not represent the whole city.

“Liepaja is a port, a residential city, you probably don’t even call it a resort. There is a lot of industry and permanent residents here, so the price range is very large. There are also old abandoned building blocks of nine-story apartment buildings , maybe further from the sea. You can buy it for 15 thousand Eur one-room apartment badly renovated, but if you go to the old town, closer to the sea, prices go up several times.

When evaluating the entire city, its infrastructure, and compared to our coastline, there are certainly no miracles. There are cheaper options, but they are completely different from ours, ”said the interlocutor, who can find cheap apartments in Liepaja this year.

Do people move to live on the road?

The Records Center reports that the number of transactions between residential houses and land is growing for the second consecutive month, in addition, the number of garden houses sold has increased significantly.

“In part, this may be a psychological effect of quarantine: People who have been quarantined for some time have simply yearned for freedom and are simply looking for a way out in the summer, and those who are financially stable decide to buy their own. house or garden house. ” analyst Paulius Rudzkis.

However, M. Statulevičius does not believe that in Lithuania we will see the migration of the population of the city to the suburbs, where the majority will work remotely and only occasionally will arrive in the city.

“There is a reality dictated by a certain period here, but in the long run, cities will certainly not lose their existence and their goals, people will certainly not move and be dispersed throughout Lithuania.” We see similar trends in the US. USA, England, and other densely populated cities in the west, where people are trying to move from very densely populated areas to less populated areas, replacing apartments with houses, etc.
In Lithuania, we are not talking about a density that dictates the need to escape from the city. The city is the best solution for a quality life. This is a long-term trend: people move to the city, not outside the city, “he says.

This period changed the habits of some residents to work remotely, perhaps from farms or villages.

How many people can afford to work? People in the administration can do it, but there are endless jobs that cannot escape, that have to physically serve, etc. The part of those who can afford to leave, apparently, will leave, but they will not move, they will simply have a farm during the warm period, ”said M. Statulevičius.