Investments, Lithuania, Real Estate

Based on the data of Lithuanian Real Estate Development Association (LNTPA), Vilnius has to offer more than 2,000 newly built apartments, whereas Klaipeda around 700 and Kaunas around 400. However, in sales figures per thousand inhabitants Vilnius is not leading any longer, instead, the port city of Klaipeda is. 18 apartments are sold per 1,000 residents per year in Klaipeda, compared to 15 in Vilnius and 11 in Kaunas.

"Prices have increased in comparison with the period of crisis. Buyers draw attention to economy of the dwelling, maintenance costs and the location. Naturally, newly built and economic apartments in a good location are chosen as an investment, anticipating its value to retain and grow," said Mindaugas Statulevicius, Director of LNTPA.

Low prices and interest rates as well as expensive rent induce people to buy apartments as an investment. Buyers of prestigious apartments often rent them to employees of embassies or foreign businessmen residing in Lithuania. Thus they are always interested in what security systems are installed and what security companies offer services. Rental return on investment is estimated to reach 8 percent at the moment.

The main reason behind the growing housing demand is the planned introduction of the euro in Lithuania next year. Frequently people fear of the euro adoption and invest the saved funds in real estate which causes prices to rise.