Record apartment market performance in 2016
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 0.4% in December 2016. The annual apartment price growth in the major cities of Lithuania was 5.5% (the annual apartment price growth in November 2016 was 5.2%).
In December 2016 apartment prices in the capital grew 0.4% with the average price per square meter reaching EUR 1,417 (+6 EUR/sqm). Since the last lowest price level recorded in May 2010 prices have increased by 22.7% (+263 EUR/sqm). Apartment prices in Kaunas, Klaipėda, Šiauliai and Panevėžys in December grew by 0.3%, 0.4%, 0.8% and 0.9% respectively with the average price per square meter reaching EUR 984 (+3 EUR/sqm), EUR 1,012 (+3 EUR/sqm), EUR 595(+4 EUR/sqm) and EUR 559 (+6 EUR/sqm).
In the past 12 months, the prices of apartments grew in all major cities: 6.8% in Vilnius, 4.3% in Kaunas, 2.7% in Klaipėda, 5.5% in Šiauliai and 5.1% in Panevėžys.
“Last year can be considered exceptional in the country’s housing market in major cities. The highest positive annual apartment price change (+ 5.5%) was recorded in major cities culminating in a significant and fastest annual increase in prices in the country’s capital city (+6.8%) since 2007. In 2016, Vilnius saw the historical surge in market activity with the largest number of registered apartment transactions in a year exceeding even the 2007 figure by 2%. Market activity indicators in other major cities were some of the best in the past 9 years. It is clear that very high or even record demand for homes propelled the price rise,” says Saulius Vagonis, Head of Valuation & Analysis at Ober-Haus.