Baltic, Real Estate

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 13:23

Value of real-estate trade deals increased by 10% in Lithuania in Q1

Danuta Pavilenene, BC, Vilnius, 21.05.2010.Print version
The value of real-estate trade deals increased by 10% in Lithuania in the first quarter of the year 2010, compared to the previous year, LETA/The Baltic Times reports, referring to Center of Registers.

The improvement in real estate sale and purchase deals could be explained by improved real estate lending conditions, head of one of the largest real estate companies Ober-haus Vytas Zabilius stated.

 

The other factor which could add to a bounce of the real estate market in Lithuania could be attractive real estate prices, which have plummeted approximately 40% at some segments on the market.

 

"Though real estate prices still continue slowly inching downwards, the process is slowing and is expected to slowly bottom out. The prices of apartments in the first quarter of 2009 receded 11.2%, however, in the same period in 2010, the drop-off was quite insignificant, down 2.8%," Zabilius told The Baltic Times.

 

According to him, potential real estate buyers eyeing the considerably stabilized prices, and given better lending conditions, make up their mind easier in deciding whether to buy.

 

He asserts that though all three Baltic countries – Latvia, Estonia and Lithuania – have come across a large tumble; although, certain distinctions could be named.

 

"The three Baltic countries largely share the same trends; however, the decline in the Latvian and Estonian real estate market was recorded quite earlier than in Lithuania.

 

Having bottomed out, it has been steadily rising. In Lithuania, we witnessed a relatively later slump; however, it has not bottomed out yet. These differences have been caused by separate tax systems, different lending approaches, uneven levels of debt, uneven developments of separate segments of the market and the general economic situation," Zabilius concluded.






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