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According to a press release, in April 2021, the sale prices of apartments in the country’s capital grew by 1.3 percent. and the average price per square meter reached 1,790 Eur (+24 Eur / m²). In Kaunas, Klaipėda, Šiauliai and Panevėžys, in March they registered 1.7%, 1.4% and 0.7%, respectively. and 1.7 percent. The growth in apartment prices and the average price per square meter amounted to 1,244 Eur (+20 Eur / m²), 1,228 Eur (+17 Eur / m²), 837 Eur (+6 Eur / m²) and 827 Eur ( +14 Eur / m²), respectively.
During the year (April 2021, compared to April 2020), apartment prices increased in all major cities in the country: in Vilnius by 9.2%, in Kaunas by 6.5%, in Klaipėda – by 7.7%, in Šiauliai – by 11.3 percent and in Panevėžys – by 12.0 percent.
“April this year has extended the period of the fast-growing Lithuanian real estate market by more than half a year. The demand for housing in the heights increases the opportunities for sellers to sell homes at increasingly higher prices. According to the Registry Center of State Enterprises, in April 2021, more than 3,600 apartments were sold in Lithuania, which is one of the best results in history.
Looking at the structure of apartment transactions recorded across the country, we see that the market is active in all segments. If in the segment of newly built apartments in Vilnius in recent months there have been record preliminary agreements on the acquisition of new apartments, then the final number of registered apartment transactions shows a rapid growth of acquisitions of older construction apartments in the whole country.
Rapidly increasing demand across all apartment segments is leading to faster growth in sales prices for new and old construction apartments. And looking at the price changes in the big cities of the country in the first four months of this year, it can be assumed that this year the general price change should be really exceptional. If over the course of the year the rate of growth in apartment prices remains as fast as it was at the beginning of this year, after a long hiatus we will already see faster growth in apartment prices rather than wages.
According to the latest forecasts from SEB Bank, the median salary in the country should increase by 7.5 percent in 2021, while accelerated growth in apartment prices may exceed this year’s salary growth forecasts and reach two digits in Lithuanian cities. For buyers with higher incomes or with the potential for faster income growth, rising apartment prices are not a limiting factor for home purchases, as their current or future financial situation makes it possible to offset the higher increase. Quick apartment prices.
However, this is bad news for buyers with lower income levels and lower growth potential. With house prices rising faster, the housing options for those people will decline, ”says Raimondas Reginis, Ober-Haus Head of Market Research for the Baltic States.
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