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It becomes a luxury good
For young families, the dream of having a home becomes a mirage that drifts away. Over the past six months, the prices of apartments and houses in Panevėžys have reached unprecedented levels: it is estimated that the price of housing here has increased between 10% and 20%.
The most expensive house, in the center of the city. For example, on Kranto Street, in a brick house, a two-room apartment of atypical planning costs 87 thousand. euros. In the sleeping areas, the prices are a bit lower: here, depending on the floor and the installation, 40,000 to 65,000 euros are requested for a two-room apartment. The house is sold even before construction begins, only from drawings. For such 52 square meters. m apartment in the Kniaudiškės district is requested for 62,000 euros. The builder promises to install all the decoration of the apartment at that price.
When planning to buy a three-room apartment, you will have to open your wallet even more. For example, for an apartment on the second floor in a block of houses on Parko Street, 63 thousand. euros, although the apartment needs repair. And on the same floor, but a renovated apartment in a brick house in the Tulpiai district already costs 86 thousand. euros.
Results in perpetual tenants
Both economists and real estate experts predict that if prices continue to rise at that rate, the bursting of the housing bubble, as it was during the 2008 crisis, is inevitable.
Vaidas Šukys, director of the Hausitus real estate agency operating in Panevėžys, said that property prices in the capital Aukštaitija are increasing by 5-6 percent every year, and this, according to him, is completely normal. However, the changes in this market in recent years have surprised even professional gamers.
“During the first half of the year, prices increased by 10-20%, especially in the apartment sector,” says V. Šukys.
If the situation does not change, according to a real estate expert, young families will continue to have their own house in a dream. People will become perpetual tenants, which has long been the norm in Europe, where around 70 percent. rental housing.
“We have cases in which people, without entering the situation, turn to us, but with the available budget, they cannot buy a decent home, so they have to continue renting,” said V. Šukys.
The best time is five years ago.
V. Šukys sees many reasons why prices have risen so dramatically in such a short time. Probably the main thing: reduced offer. If there were usually about 390 real estate ads in Panevėžys on one of the largest advertising portals, they have now decreased to 170. However, the number of buyers remains similar.
According to V. Šukis, a renovated one or two-room apartment on the 2-3 floor sells very quickly. Sometimes they don’t even make it to the advertising portals.
“It is not the case that we close all the apartments for sale. If a person needs such an apartment, he tends to overpay up to ten percent. And next time you have to sell cheaper than the market price, especially if the apartment is in an area, flat or house with no demand, where, for example, there is a lot of social housing or parking problems. But it has always been that way, “said V. Šukys.
He jokes that the best time to buy a home is always five years ago.
“Five years from now, we will probably say that the best time to buy a house was in 2021. It is always better to pay an advance to the bank for your own home than rent. Until the loan is disbursed, there will be more than one crisis and the money will depreciate several times over, so the family home is always the best investment, ”says V. Šukys.
It got more expensive for no objective reason
Vitalijus Lialis, head of the office of the real estate agency Capital Panevėžys, believes that it is impossible to predict how property prices will change in the near future. According to him, house prices have risen at a record rate, although there are no compelling objective reasons for this.
“If someone could name those reasons, I would listen. One possibility is a change in the structure of the supply. Some people withdrew from the market, others with high expectations of selling more expensively returned to see that they could now get a fair amount. Today, many luxuriously furnished apartments have appeared on the market, whose prices reach unprecedented records, ”said V. Lialis.
Buy to rent
According to V. Lialis, those who are looking for their own home compete in some way with those who buy a home as an investment. It is noteworthy that the proportion of the latter has increased in Panevėžys.
“There are more and more rumors about rising inflation. We have many cases where people from other districts invest the money saved in an apartment in Panevėžys and then rent it. If a person has accumulated about 30 thousand. It is one of the most investments. people see that if they don’t buy now for that price, they won’t buy anything later. Last year for 30 thousand. It was possible to buy a two-room apartment in Panevėžys, and this year, only a one-room apartment “, said V. Lialis.
According to the expert, no one can predict how prices will change in the coming years. Even during 2008. During the crisis, people who bought homes lost little, at least bank interest rates were zero.
“If there is a spike in prices, in theory you shouldn’t buy a house, but if you live in that house for 20 years, it can become twice as expensive. At first, we will wait for prices to start falling, then to the bottom of prices, even later to the bottom of the fund, and we will see that a good decade has passed. Even experts or banks cannot always predict price fluctuations in the real estate market and what the average person to talk about. It is important to calculate whether the loan installments will not be an excessive burden ”, advised V. Lialis.
Consequence of telework
Economist Sigismund Mauricas sees several factors driving the rise in house prices. One of them is the change in habits of the population during the pandemic. Some people work during quarantine and continue to plan to work from home. This allowed us to notice the shortcomings of the housing, so both last year and earlier this year, the greatest turmoil in the market was dictated by the need for a larger, better quality home. These trends are currently being observed around the world.
“Another factor is the increase in wages, especially in the public sector. People with their income can easily get a bank loan and the fees cannot become a burden. However, we see that a wide circle of people have accumulated a lot of savings, so they buy a house without loans, “said the economist.
According to Ž. Maurico, at the beginning of the year, more homes were bought to live on their own, and currently the movement of so-called speculators is observed. As a joke, bought for kids who don’t even have.
The suburbs are growing
The economist believes that when looking for your own house, you should not be afraid of housing from the drawings, you should only choose reputable builders. Although such a purchase is riskier, you have to wait longer, but it is also much cheaper.
Another option is to search for a new dwelling or house, especially in cities like Panevėžys. Maintaining a house becomes cheaper than an apartment in a Soviet apartment building without renovation, and new technologies allow the house to be built in record time.
“The growth of the suburbs is being observed all over the world. Even in Panevėžys, people receive more than several thousand euros. So the question is whether they will want to live in a Soviet apartment, the price of which will not differ much from that of the house. The house itself has other advantages, and if a person’s workplace is next to the ring road, it makes no sense to live in the city center “, – Ž. Mauricas.
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