Rapid growth in prices of old apartments in Vilnius and of new apartments in Kaunas and Klaipėda
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 October 2016. The annual apartment price growth in the major cities of Lithuania was 5.0% (the annual apartment price growth in September 2016 was 4.8%).
In October 2016 apartment prices in the capital grew 0.3% with the average price per square meter reaching EUR 1,403 (+4 EUR/sqm). During a year the prices of apartments in Vilnius increased by 6.1% and since the last lowest price level recorded in May 2010 prices have increased by 21.5% (+249 EUR/sqm). Apartment prices in Kaunas, Klaipėda and Šiauliai in October grew by 0.5%, 0.3% and 0.1% respectively with the average price per square meter reaching EUR 980 (+5 EUR/sqm), EUR 1.007 (+3 EUR/sqm) and EUR 591 (+1 EUR/sqm).
In Panevėžys apartment prices remained stable and were the same as in last month – 552 EUR/sqm. In the past 12 months, the prices of apartments grew in all major cities: 6.1% in Vilnius, 4.1% in Kaunas, 2.4% in Klaipėda, 5.2% in Šiauliai and 4.1% in Panevėžys.
“Statistical data for the past twelve months shows that the prices of both new and old apartments in the main Lithuanian cities continue to grow. Although the changes in the prices in the different housing segments are similar, certain differences can also be individuated. Analysis of the most active main cities shows that in Vilnius the prices of old apartments grew the most, while in Kaunas and Klaipėda the growth was recorded for new apartments. Over the past twelve months, old apartments in Vilnius have become 7.6% more expensive, while new apartments have become 5.5% more expensive. In Kaunas and Klaipėda over the same period, the prices of old apartments increased, respectively, by 4.0% and 2.1% and the prices of new apartments increased, respectively, by 5.1% and 2.8%. The supply of new apartments in Vilnius, which has been rapidly increasing in the past three years, has also resulted in a more moderate growth in prices of new apartments, whereas in Kaunas and Klaipėda the growth of the number of new apartments offered for sale is slower and the competition among developers is not as fierce as in Vilnius,” says Saulius Vagonis, Head of Valuation & Analysis at Ober-Haus.