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Arvydas Avulis, chairman of the board and Lithuania’s largest builder, and Arnoldas Antanavičius, an independent expert and analyst in the real estate market, share their views on the program.
Avulis says that contrary to what an ordinary person might think, builders’ earnings don’t really break records these days. The reason is simple: If house prices have risen 15-20 percent since the beginning of the year, construction costs have increased by as much as 30 percent.
The independent real estate expert A. Antanavičius disagrees with this and has a different opinion. According to the interviewee, it is not correct to say that house prices are going up just because construction costs have also gone up. “Personally, I don’t like this argument very much. The construction cost argument is more appropriate for a monopoly market. In a market economy, things are different,” he says.
A. Avulis says that this is not the only factor influencing the rise in apartment prices. “It is worth mentioning that the offer in Vilnius has decreased significantly. If a year ago we had about 5,000 apartments on the market from which the buyer could choose, today we have a little more than 3,000 apartments. This obviously affects the price,” he will say.
And that’s not all.
What makes house prices go up so sharply? Is it normal that people have to participate in auctions for the home of their dreams or decide to buy it in just 15 minutes? Finally, don’t builders really win in a real estate situation like this?
All the answers to these questions can be found in the program “Karštai su tv3.lt”, which you will find at the beginning of the article.
Watch the show “Hot with tv3.lt” every Monday at 7:30 pm. on TV3!
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