Highest price increase for newly built apartments in Kaunas and Klaipėda and for old apartments in Vilnius
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 0.5% in November 2018. The annual apartment price growth in the major cities of Lithuania was 3.8% (the annual apartment price growth in October 2018 was 3.5%).
In November 2018 apartment prices in the capital grew 0.5% with the average price per square meter reaching EUR 1,509 (+8 EUR/sqm). Since the last lowest price level recorded in May 2010 prices have increased by 30.7% (+354 EUR/sqm). Apartment prices in Kaunas, Klaipėda, Šiauliai and Panevėžys in November grew by 0.4%, 0.2%, 1.0% and 0.7% respectively with the average price per square meter reaching EUR 1,071 (+4 EUR/sqm), EUR 1,075 (+2 Eur/sqm), 664 (+6 EUR/sqm) and EUR 644 (+5 EUR/sqm).
In the past 12 months, the prices of apartments grew in all major cities: 2.8% in Vilnius, 4.1% in Kaunas, 3.5% in Klaipėda, 8.9% in Šiauliai and 12.3% in Panevėžys.
‘The analysis of the situation in the major cities in Lithuania shows that during the past twelve months, prices increased for newly built apartments in Kaunas and Klaipėda and for old apartments in Vilnius. In 2018, prices for newly built apartments increased by 4.7% and 5.9% and for old apartments – by 3.8% and 2.1% in Kaunas and Klaipėda respectively. In the meantime, prices for newly built apartments in Vilnius increased by 1.1% and those of old construction – by 4.2%.
The volumes of construction of new apartment buildings are still on the rise in Vilnius and the share of new apartment sales in the total number of apartment transactions continues to grow steadily. At the same time we can see that developers increasingly invest in energy efficient and higher class (more expensive) projects and interior finish of apartments, however the average area of newly built apartments continues to decrease. It is obvious that development of such housing affects the final purchase price per square meter of new apartments which, according to the official information from authorities, continues to rise faster than the prices of old apartments. If we eliminate, at least partly, these quantitative and qualitative changes in the construction of new apartment buildings, the increase in the price for new apartments is moderate and, according to Ober-Haus, even lower than the sales prices of older apartments,’ Raimondas Reginis, Ober-Haus market research manager for the Baltics, said.
Full review: Lithuanian Apartment Price Index, November 2018