Price expectations continue to hold despite declining housing market activity
The Ober-Haus Apartment Price Index (OHBI) in Lithuania, which records changes in apartment prices in five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.1% in November 2023 (the price index in October 2023 decreased by 0.1%). Overall, the apartment prices in the major cities of Lithuania have increased by 1.2% over the last 12 months (the annual growth in October 2023 was 1.1%).
In November 2023, apartment sales prices in Kaunas, Klaipėda and Šiauliai increased by 0.2%, 0.5% and 0.2% respectively and the average price per square meter in these cities was EUR 1,726 (+4 EUR/sqm), EUR 1,6270 (+8 EUR/sqm) and EUR 1,106 (+3 EUR/sqm). In Panevėžys, apartment sales prices decreased by 0.1% and the average price per square meter was EUR 1,073 (-1 EUR/sqm). In Vilnius, apartment sales prices remained unchanged and the average price per square meter stood at EUR 2,564.
Apartment prices rose year-on-year in November 2023 in all major cities of the country: 0.8% – in Vilnius, 1.9% – in Kaunas, 1.3% – in Klaipėda, 2.9% – in Šiauliai and 1.5% – in Panevėžys.
“Unlike housing market activity, which suffered another downturn in November, price expectations of the population remain quite optimistic. According to the State Enterprise Centre of Registers, in November 2023, compared to October 2023, almost 16% fewer apartments and 24% fewer houses were purchased in Lithuania. In terms of activity, it was one of the worst months in the year. Meanwhile, according to the survey of households conducted in H2 2023 for the Bank of Lithuania, 39% of the respondents thought that home prices would increase over the next 6 to 12 months and only 21% of the respondents thought that they would decrease. The remaining 40% said that home prices would remain unchanged or had no opinion. Compared to the results of a similar survey conducted in 2022 (23% responded that home prices would increase, 4% – that prices would decrease, and 73% believed there would be no changes in prices), there is no prevailing opinion on the housing market outlook this year. Therefore, it may be concluded that even though the activity in the housing market has slowed down considerably, the majority of the country’s population remains calm and does not make any hasty home buying or selling decisions. The changes in apartment prices recorded this year reflect this situation – a stable housing price curve has formed in the course of the year,” noted Raimondas Reginis, Head of Market Research for the Baltic countries at Ober-Haus.
Latest news
All news
Housing prices follow the dynamics of changes in the prices of basic consumer goods and services
Ober-Haus Apartment Price Index for Lithuania (OHBI), which captures changes in apartment prices in the five largest Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.4% in June 2024. The overall level of apartment prices in Lithuania’s major cities has grown by 3.3% over the last 12 months (annual growth of 2.7% in May 2024). In June 2024, the sales prices of apartments in Vilnius, Kaunas, Šiauliai and Panevėžys grew by 0.5%, 0.7%, 0.9% and 0.3%, respectively, and the average price per square metre amounted to EUR 2,615 (+12 Eur/m²), EUR 1,778 (+12 Eur/m²), EUR 1,131 (+11 Eur/m²) and EUR 1,103 (+3 Eur/m²). Meanwhile, Klaipėda recorded a 0.1% decrease in apartment prices in June, with the average price per square metre amounting to EUR 1,687 (-2 Eur/m²). Over the year (June 2024 compared to June 2023) apartment prices increased in all major cities of the country: in Vilnius - 2.5%, in Kaunas - 3.2%, in Klaipėda - 5.3%, in Šiauliai - 4.9%, and in Panevėžys - 4.2%. "Looking at the sales price curve for housing in major cities in recent years, it can be seen that it is broadly in line with the price dynamics of consumer goods…
Real estate markets in the Baltic countries are experiencing varying degrees of difficulties, yet at the same time opening up opportunities for the most active participants
The year 2023 was full of challenges for the real estate markets of the Baltic countries showing some early signs of this back in 2022. Last year, Baltic countries saw an economic slowdown, declining activity in the residential and commercial real estate market, rising number of unsold apartments, higher office vacancy rates and slowing construction volumes. According to the Ober-Haus annual Real Estate Market Report on the capital cities of the Baltic countries, it is clear that the sentiment of homebuyers, businesses and investors alike has slumped and confidence in the Baltic real estate market as a whole has further eroded. While the general sentiment of the real estate market participants is similar across the Baltic countries, the overall impact of global factors (Russia-Ukraine war, high inflation, interest rate hikes) differs to a varying degree. “Since the real estate market in Latvia and its capital city has lacked fast growth in the last five years, the impact of the current challenges is not as tangible as in other countries,” Raimondas Reginis, Head of Market Research for the Baltics at Ober-Haus, said. Meanwhile, real estate markets in Estonia and Lithuania experienced an investment boom in the aftermath of Covid-19, resulting in…
First positive signs in the housing market, but faster recovery may have to wait
Ober-Haus Apartment Price Index for Lithuania (OHBI), which captures changes in apartment prices in the five largest Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.1% in May 2024. The overall level of apartment prices in Lithuania’s major cities has grown by 2.7% over the last 12 months (annual growth of 2.8% in April 2024). In May 2024, the sales prices of apartments in Klaipėda, Šiauliai and Panevėžys grew by 0.5%, 1.0% and 1.2%, respectively, and the average price per square metre amounted to EUR 1,689 (+8 Eur/m²), EUR 1,120 (+11 Eur/m²) and EUR 1,100 (+13 Eur/m²). Meanwhile, Vilnius recorded a 0.1% decrease in apartment prices in May, with the average price per square metre amounting to EUR 2,603 (-2 Eur/m²). In Kaunas, the average price per square metre remained unchanged at EUR 1,766 per square metre. Over the year (May 2024 compared to May 2023), apartment prices grew in all major cities of the country: in Vilnius – by 1.8%, in Kaunas – by 2.7%, in Klaipėda – by 5.2%, in Šiauliai – by 4.0%, and in Panevėžys – by 4.1%. "It can be said that the Lithuanian housing market has already reached its lowest point of…
All news