Analytics, Markets and Companies, Real Estate

"The current situation makes it necessary for real estate companies to seek ways of gradual price reduction while observing where a possible demand for accommodation might appear," states manager Viktorija Beatrice Radzeviciene responsible for market development in the company Eika.

According to her, the research of trade deals that were made up last year in Vilnius shows the major part of deals would be requested to fit into the limits between 150,000 litas (43,651 euros) and 400,000 litas (116,403 euros), whereas there would be fewer customers who would be able to afford to buy accommodation for more than 400,000 litas.

"This clearly demonstrates the demand for accommodation to be existing, yet there is no such demand for the price that has currently been offered by market development experts," explains Radzeviciene. She points out that Eika has reduced the prices for its building projects by up to 5%, and this decision has well justified itself as the selling market expands. She believes that the situation should by no means be dramatized because the current changes in market are both beneficial for customers and deep rooted business which shows promise to stay in market for a long time. Times only show to be hard for minor partners in business, particularly for those who have underestimated the situation. "The moment is now absolutely unprofitable, yet it teaches us a lesson," Radzeviciene explains her attitude towards the currently shaking market.

Real estate experts announced the statistics which show there were fewer deals contracted and real estate prices were dropping over the first quarter of this year. According to the statistics provided by the company InReal, some companies building and developing real estate in Vilnius reduced prices for economy and middle class flats by 10% last March. Ober-Haus claims prices for accommodation in Vilnius to have dropped approximately by 5%.