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Lithuania stands out in the world not only for its achievements in basketball or the speed of the Internet, but also for the growth rates of house prices.
Lithuania ranks third in terms of house price growth in recent years, but comparing only the first quarter of this year, even in first place among 56 countries, revealed the latest compiled Global House Price Index by the international consulting firm Knight Frank.
Photo by Aruodas.lt / “Valley Valley”
Admittedly, the researchers emphasize that it is still too early to assess the full impact of COVID-19 on house prices, as it will only be seen in the second or even the third quarter of 2020.
The biggest jump is in New Zealand.
In the Annual Global House Price Ranking, which compares price changes in the first quarter of 2019 and the first quarter of 2020, Turkey rose to the top, with house price increases of 15 percent.
New Zealand, which was in 27th place a year ago (14.5%), jumped to second place, Lithuania (13.8%) was in third place, Ukraine (11.9%) was in fourth place, and Luxembourg is in all five first (11.1%). .).
In the other Baltic countries, house prices grew less, in Latvia 9.4 percent and in Estonia, 8.2 percent.
House prices rose less in Spain (0.3%) and South Korea (0.1%).
Meanwhile, of more than 50 countries analyzed, only one, Finland, registered 1.2 percent. falling prices.
Luke April / 15min photo / Turku city life
“Since we started compiling our index in 2008, this is the highest percentage of countries (98%) that have seen annual price increases,” analysts report.
In the first quarter, the highest growth was in Lithuania
However, already in January-March of this year, when the COVID-19 pandemic peaked in China and began to spread in Europe and other continents, the situation is completely different: in the first quarter of 2020, prices of housing in 13 countries and territories fell, 8 of them in Europe. countries.
Eika’s house in Pilaitė
The greatest growth in house prices in the first quarter of 2020 was observed in Lithuania: house prices in our country increased by 12.2%, while in most other countries there was only a slight 0 , 5-4%. increase.
In Latvia, house prices rose just 0.6% in the first quarter, while in Estonia, 2.9%.
The researchers note that it is too early to see the impact of the COVID-19 pandemic on house prices, in the first quarter of this year, when COVID-19 had already peaked in Asia, but had not yet devastated Europe, North and South America. Therefore, the real impact on prices will be seen in the second or even the third quarter.
Still, analysts predict that the pandemic will affect home sales more than prices. For example, in April, sales in New Zealand fell as much as 79 percent, but prices were flat.
“Sellers are unlikely to cut prices significantly, given low interest rates and bank loan ‘holidays’ in many developed economies. All of this will prevent massive home sales in despair,” the report says.
The researchers use data from national central banks and statistical offices in each country to compile the rating.
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