As the activity of the housing market decreases, the sale prices of apartments manage to increase – MadeinVilnius.lt

Ober-Haus’ Lithuanian apartment price index (OHBI), which captures changes in apartment prices in the five largest cities of Lithuania (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.2% in March 2024. The overall level of apartment prices in the big cities of Lithuania grew by 2.4% over the last 12 months (in February 2024, the annual growth reached 2.2%).

In March 2024, the sales prices of apartments in Vilnius, Klaipėda, Šiauliai and Panevėžys grew by 0.2%, 0.7%, 0.4% and 0.5% respectively, the average price per square meter was 2,593 (+4 Eur/m²), 1,662 (+11 EUR/m²), 1,100 EUR (+5 EUR/m²) and 1,081 EUR (+6 EUR/m²). Meanwhile, a 0.1% decrease in apartment prices was recorded in Kaunas in March, and the average price per square meter amounted to EUR 1,749 (-2 EUR/m²).

During the year (March 2024, compared to March 2023), apartment prices grew in all major cities of the country: Vilnius – 1.9%, Kaunas – 2.7%, Klaipėda – 3.8%, Šiauliai – 1.9% and In Panevėžys – 2.3%.

“Despite the continued decline in overall activity in the country’s housing market, housing sales prices in the country’s big cities show resilience and are even able to continue climbing up a little bit. According to the data of the Register Center of VĮ, in the first quarter of 2024, compared to the first quarter of 2023, both apartments and houses were purchased in Lithuania by 13% less. During the same period, apartments of older construction were purchased almost 5% less, while acquisitions of apartments of newer construction were registered in the country by 40% less. The volume of new housing construction, which started to decrease in 2023, leads to the fact that significantly fewer apartment transactions in new construction projects are registered this year. It also leads to a greater overall decline in housing market activity.

The price dynamics of the largest housing segment and the most popular among buyers in the country’s big cities is a good illustration of the fact that the sales prices of apartments have remained basically stable or even managed to increase recently. According to Ober-Haus calculations (based on registered apartment sales transactions), in the first quarter of 2024, the median sales price per square meter of 2-room apartments located in old multi-apartment typical residential areas of Vilnius was EUR 1,939/sq. m or 1.9% more than in the same period in 2023. In the same period, the median sales price of such apartments per square meter in Kaunas was 1,416 EUR/sq. m (1.7% more than in the first quarter of 2023), and in Klaipėda – 1,316 EUR/sq. m (7.4% more than in the first quarter of 2023).

This shows that despite the generally negative sentiments still prevailing in the real estate market, home sellers are able to withstand the pressure of potential buyers and do not make significant corrections in the sales price. So far, we have observed that some home sellers are trying to adjust to the slower pace of the market and are adjusting their overly optimistic expectations. However, those sellers whose objects are sold at the market price sooner or later get their buyers. It is the peace of mind of sellers and the possibility of waiting longer for home buyers that determines the fact that the general change in housing prices in the country’s big cities continues to remain, albeit with a small, but positive sign,” says Raimondas Reginis, Ober-Haus market research manager for the Baltic countries.