Apartment prices rise in June fastest in Šiauliai and Panevėžys
The Ober-Haus Lithuanian apartment price index (OHBI), which records changes in apartment prices in the five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.3% in June 2018. The annual apartment price growth in the major cities of Lithuania was 3.1% (the annual apartment price growth in May 2018 was 3.2%).
In June 2018 apartment prices in the capital grew 0.2% with the average price per square meter reaching EUR 1,479 (+3 EUR/sqm). Since the last lowest price level recorded in May 2010 prices have increased by 28.1% (+324 EUR/sqm). In Kaunas and Klaipėda the same price growth was recorded and was 0.3% with the average price per square meter reaching EUR 1,048 (+3 EUR/sqm) and EUR 1,057 (+3 EUR/sqm) respectively. Apartment prices in Šiauliai and Panevėžys in June grew by 0.6% and 1.2% respectively with the average price per square meter reaching EUR 633 (+3 EUR/sqm) and EUR 603 (+7 EUR/sqm).
In the past 12 months, the prices of apartments grew in all major cities: 6.7% in Panevėžys, 4.7% in Šiauliai, 4.3% in Kaunas, 3.2% in Klaipėda and 2.3% in Vilnius.
‘In 2018, a trend of a faster increase in apartment prices has been recorded in smaller cities of the country. If of all the major cities growth has been the smallest in the country’s capital over the past months, so, for example, in Panevėžys, Šiauliai or Kaunas apartment sales prices rose at a faster rate. In recent years, rapid development trends of the residential and commercial property have been recorded in the city of Kaunas in conjunction with positive expectations related to economic prospects of the city.
Positive changes in the real estate market in the larger cities partly spills over to smaller cities. This can be observed in Šiauliai and Panevėžys, which, after the last recession, showed poor indicators both in the increase in prices and new home construction volumes. Recently, however, these cities have finally seen faster relative price increase for apartments and a slight increase in the activities of the development of new housing. The sellers of older housing in these towns essentially do not experience competition from the builders of new housing and the overall economic situation, even despite the negative demographic changes, remains conducive to those who wish to sell their property at a higher price,’ Raimondas Reginis, Ober-Haus Research Manager for the Baltics, said.