The biggest growth of apartment prices this year recorded in May
Apartment prices in Vilnius increased by 0.4% to 1,476 EUR/sqm in May 2018. During a year apartment prices in Vilnius increased by 2.5% and since the last lowest price level in May 2010, apartment prices are higher by 27.8% (by 321 EUR/sqm). In January-May 2018, the number of apartment transactions in Vilnius (4,432 transactions) increased by 9.0% compared with January-May 2017.
In May 2018 apartment prices in Riga increased by 0.1% to the average price of 1,228 EUR/sqm. Over the past 12 months, the average apartment price has increased 3.7%. In total there were 3,731 apartment transactions in January-May 2018 in Riga, which is less by 2.2% compared with January-May 2017.
The average apartment price in Tallinn increased by 1.0% to 1,849 EUR/sqm and reached all-time highs in May 2018. Over the past 12 months, the average apartment price has increased 7.9%. In total there were 4,140 apartment transactions in January-May 2018 in Tallinn, which is 3.3% more than in the same period of 2017.
“After a moderate growth of apartment prices at the beginning of the year in May Lithuanian cities recorded the biggest monthly growth of apartment prices this year.
Prices of older construction apartments in all cities of the country were increasing most rapidly in May this year. Looking at a long-term period, however, tendencies in separate cities of the country remain different. During the last twelve months prices of old construction apartments in Vilnius increased 3.5%, and those of new construction apartments – 1.3%. Meanwhile, during the same period prices of old construction apartments in Kaunas and Klaipėda got up 2.8% and 1.1% respectively, and those of new construction apartments – 8.3% and 7.4% respectively.
If in the capital of the country the pace of development (construction) of new construction apartments is slowing down, in Kaunas and Klaipėda a much more rapid development of this housing segment is already being recorded. For instance, this year in Vilnius it is planned to build almost 10% more apartments than in 2017, meanwhile in Kaunas and Klaipėda the annual growth of supply may reach even 80–100%. Therefore in Kaunas and even in Klaipėda it is possible to choose from an increasingly bigger number of new projects, which can offer potential customers a bigger variety of locations, conceptions and modern technical solutions. It also makes an impact on prices of new construction apartments in Kaunas and Klaipėda – a quantitative and qualitative jump up of supply determines their higher sales prices,” says Raimondas Reginis, Ober-Haus Market Research Manager for the Baltics.