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“As expected, the imbalance between supply and demand is becoming more pronounced. It is becoming more pronounced not only in Lithuania, but also in many other countries, especially those that have been slightly affected by the crisis caused by COVID-19, ”said the economist Eltai.
Ž. According to Maurico, the growth trends in house prices are supported by a relatively small contraction in the Lithuanian economy.
“We see that the pandemic is not over, at least in Europe, countries are using quarantine measures as a primary tool in the fight against the pandemic and this increases uncertainty and risks in the services sector. However, a lot of money is also being spent in the affected sectors, so the overall economic downturn is not that big or that drastic. People don’t have the opportunity to spend a lot of money on leisure and tourism services, so they invest in housing, ”he said.
To achieve greater comfort in a home where more and more time is spent, residents of the country are looking to move to larger homes, says Ž. Mauricas.
“Working from home is likely to become commonplace in many countries, and the longer a pandemic lasts, the more people get used to it and the less likely they are to return to their offices. For this reason, they are trying to improve their living space, increasing the living space to accommodate the workspace. “… The demand for larger homes and especially homes is very high at the moment,” he said.
Sigismund Mauricas
© DELFI / Josvydas Elinskas
“Before the crisis, the offer grew in the segment of small apartments, at least in Vilnius, we tried to attract people to live in the city center. The suburbs were a bit deserted. (…) Now we see that the movement is going in the other direction, to the periphery, because it is a little cheaper, and prices in the center of the departments have risen ”, he added.
Still, the economist notes, the rapid rise in house prices threatens a market stagnation in the future.
“The threats exist, and the more market activity we provoke, the more likely it will fall later.” The supply-demand imbalance is likely to stabilize somewhat in the near future, but it will not clear up very quickly, “he stressed.
According to the economist, house prices are expected to stop rising, unless next year.
“However, after the end of the pandemic, people will start to travel again, spend money on leisure, etc. It may be a bit like going back to the pre-crisis situation, but the market will not return to it at all. I think it’s more of a scenario for others or even for 2023 when we start talking about tightening our belts. And this year will be a year of similar trends, “said Eltai. Mauricas.
According to the Department of Statistics, in the fourth quarter of last year, compared to 2019. In the fourth quarter, new construction homes increased in price by 8.8 percent. Of these, one-room houses and two apartments – 14.4%, apartments in multi-apartment houses – 6.7%.
Meanwhile, prices for homes under previous construction rose 9.7 percent. Of these, apartments in multi-apartment homes went up 10.6 percent, and one-bedroom, two-apartment homes by 7.1 percent.
In the fourth quarter of last year, compared to the third quarter, house prices increased 3.9 percent.
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