«Housing prices in Lithuania are growing, but you can still find a great apartment for € 75,000.» An expert speaks about the situation in the real estate market
The cost of housing in Lithuania increased by 14% over the year, and this has been the largest increase in real estate prices in the country over the past decade. The managing Partner of the real estate agency Capital Smart Arunas Pranevicius has told Realting.com how to navigate such an active real estate market, and what properties really are worth paying attention to.
«Real estate prices in Lithuania have grown by 14% over the year, and this has been their largest increase over the last decade»
— The real estate market in Lithuania can now be called very active. According to the European statistical office Eurostat, the cost of a square meter in the secondary housing market in Lithuania has increased by an average of 12%; in the primary market, by 17%, and this is a truly unprecedented case, — said the broker a managing partner of the real estate agency Capital Smart Arunas Pranevicius. — In Kaunas, the cost of housing has increased by about 10%, while the increase in Vilnius has reached 14%. This is the fastest growth registered in the last 10 years. As a result, Lithuania entered the top five EU countries in terms of real estate price growth in the first half of 2021.
The rise in housing prices, in my opinion, is due to many factors. First, we need to take into account the above-average inflation, to which Lithuania wasn’t an exception during the COVID pandemic (the inflation rate in the first half of 2021 was about 4%). However, in our country, wages have also grown in some industries, so we can’t really say this was a decisive factor for the price of a square meter rising.
The second, more significant factor is the global growth of the cost of building materials, followed by an increase in the cost of labor. According to Capital Smart experts, prices for building materials in Lithuania have grown by no less than 20%. The cost of labor has risen about the same amount.
The third factor, which was especially pronounced in 2021, is the increase in demand for housing in Lithuania. For several years now, there has been an increase in the population in the larger cities of our country due to relocation and internal migration.
Vilnius has become one of the centers for the placement of offices of large international companies specializing in IT, Call-center and medicine. This means that the employees of these companies are moving in together with their families.
Why do they choose Lithuania? In my opinion, it our country has the most «flexible» and simpler «entry» threshold for foreigners. Given that Lithuania is a member of the European Union, the way of life here is easy to adjust to your own rhythm, whatever it may be. Vilnius is a modern and rapidly developing city, but its rhythm is still much more comfortable than in other European countries.
Photo source: 34travel.me
«I would describe the situation in the real estate market now as a «„time of opportunities“»
— As a result of these relocation tendencies, the demand for rental housing and for the purchase of real estate of a small area of the middle price segment in large cities of Lithuania has grown.
Now you can buy an apartment on the outskirts of Vilnius with an area of about 45-50 sq. m. for about 75-100 thousand euros in the secondary market; in new buildings in the city center, you can acquire one for 120-150 thousand euros. Rentals start, respectively, at 400 euros per month in residential areas and at 550 euros in the city center. In both cases, of course, the prices depend on the area in which the property is located. But renting (as well as buying) a good apartment without the help of an experienced realtor (broker) is now almost impossible.
For example, for a comfortable stay in the capital for families with children, I would advise considering the sleeping areas of Vilnius, such as Fabijoniskes, Pasilaiciai, Justiniskes, Anatakalnis, Pilaite. Because the social infrastructure is well developed here: there are enough kindergartens and schools, playgrounds and shops in the district. There are parks nearby where you can take your kids for a walk on weekends or after work. You can buy a two-room apartment in this area for 80-95 thousand euros, or rent one for about 450-600 euros per month.
On the other hand, for young people without children I would recommend considering housing in the central districts of the city, such as Snipiskes, Naujamestis, Zirmunai, Uzupis and the Old Town. Because life is really bubbling there: there are many restaurants, bars, shopping and entertainment centers, etc. in the district. Here prices are slightly higher than the average for the city: two-room apartments with an area of 45-50 sq.m. can be rented for 600 euros per month, and you can buy such an apartment for about 135-165 thousand euros. In the old town, prices are even higher — you can rent housing for 1,000 euros per month, and buy a property for around 250,000 euros.
As for the primary market, investing in real estate now looks especially promising. An apartment in new buildings at the «„zero“» stage can be purchased at a price that’s 15-25% cheaper compared to the final stage of construction. That is why foreign investors have already become interested in such an investment — foreign buyers often turn to us for help in choosing the most profitable properties.
In general, I would characterize the situation on the real estate market now as a «time of opportunity»: you can buy an investment property very profitably or find a really cozy home at an attractive price.
Photo source: 34travel.me
The most interesting properties in Vilnius. The personal rating of the broker and managing partner of Capital Smart Arunas Pranevicius
— Now let’s talk in detail: what apartments or complexes would I advise my buyers to pay attention to?
In my personal rating of interesting and promising properties, the SKYHOME residential complex takes first place. This is a modern monolithic residential building under construction in a developing, «„green“» district of Vilnius. The territory of the complex is fenced, next to a beautiful park.
The area of apartments varies from 37 to 78 square meters, which means that you can find housing that will satisfy almost any request of the buyer within it. Among the advantages of the facility, I would single out its convenient location and well-developed infrastructure. From there, you can easily and quickly get to almost any area of the city, both by public transport and your private car. For the convenience of the residents of this complex, underground parking and surface parking are provided.
The most economical apartment in the SKYHOME residential complex costs € 74,800, and this housing with an area of 38.37 sq.m. located on the 2nd floor of a 16-storey building.
The most expensive apartment costs € 144,000: this is a 75.77 sq. m. apartment located on the 12th floor with a stunning panorama of the city.
Another advantage of the complex is that the apartments are sold both fully and partially finished. The building will be put into operation next year, and I am sure the prices for finished apartments in the SKYHOME residential complex will increase significantly.
— Another very interesting residential complex would be Žvėryno Lapės («„Fox Reserve“»). This is a premium-segment building located in the central area of the city. At the construction stage, the cost of apartments here starts at € 141,696 (for apartments with a total area of 44 sq.m.). This is a truly lucrative offer, in my opinion, considering that we are talking about elite-class housing.
The building has only 4 floors, plus an attic superstructure. Each apartment has its own balcony, terrace or patio, where you can put a coffee table or equip a complete relaxation area. At the same time, the apartments are sold with partial finishing.
The house will organically fit into the already existing environment of the district, and it will be a truly beautiful residential complex after its commissioning (completion date is early 2022). Premium materials are being used in construction, even the smallest details are taken into account in the facade decoration.
Particular attention is being paid to safety and security measures. The territory of the complex will be fenced with round-the-clock video surveillance. It will only be possible to enter the courtyard with a special chip.
— For those who are interested in suburban life, I would advise to take a closer look at the low-rise buildings in the Bayorai district on the outskirts of Vilnius.
This project in the town of Uzudvarionis consists of 20 houses built according to the principles of modern Scandinavian architecture. This is a stylish and modern class A ++ complex. Each house is built with the latest technology, so future owners will not have to worry about the energy efficiency or economy of their house.
The area of each building totals 128 square meters plus two parking spaces. As a «„bonus“», you also get your own land plot with an area of 6 acres. The cost of each cottage is € 189,000.
I love this project because it combines the privacy of having your own house with the benefits of city life. Although the project is located on the outskirts of Vilnius, going to the city center takes only 15 minutes by car. At the same time, the way home can be organized in such a way that it will already feel like your down time has started — it has such beautiful sights waiting for you!