Banks, Financial Services, Latvia, Lithuania, Real Estate

Director of Private Customer Financing Department at Swedbank Jurate Gumuliauskiene believes that the number of the fears relating to the possible effect of the euro adoption on the intensity and price of the real estate in Lithuania will increase in the future.

"However, even now, while realizing the experience of Latvia and analyzing the development of the real estate market in Lithuania, we can say that the market in the country is stable and that the relation between the supply and demand is balanced. Therefore, the transition to the new currency will have no significant effect," said Gumuliauskiene.

Last year, the real estate price in Lithuania changed a little bit. The price change was influenced by the improved situation of the country's economy, the increasing average monthly wage and the citizens' expectations and the trust in their financial situation and the country's future. Moreover, the change of the real estate price in Lithuania was also influenced by the fact that the citizens were not expecting for the real estate price decrease. As a result, the real estate market started to recover.

The experience of Latvia which has adopted the euro 4 months ago demonstrates that the new currency has had not significant effect on the balanced real estate market which has fully recovered after the crisis.