Banks, Financial Services, Lithuania, Loan, Real Estate

The average loan for real estate grew by 32% this year, and amounted to EUR 58.5 thousand (LTL 202 thousand). Mortgage loan total in the first half of 2013 was around EUR 20.2 million (LTL 70 million).

Head of Private Banking at Danske Bank Jurate Nedzinskiene said that mortgage loan market is recovering due to real estate sector recovery.

According to her, a trend is noticeable for customers to consult with at least three banks before making a decision, bank offers are compared and only then people decide on the purchase of property.

Mortgage loan terms remain unchanged – in the first half of 2013 customers of Danske Bank usually chose to repay loans in 22 years. Often loans are provided to buy new housing, mostly apartments, although there is an increased interest in borrowing money for houses.

According to Mindaugas Kulbokas, the Head of Research and Analysis at real estate consultancy company Newsec Re&Solution, recovery in housing segment is sustainable and natural. Real estate developers are investing both, own and lent funds, into projects. This determines sustainable market development. After the crisis the buyers became selective and make decisions to purchase housing only after great consideration.

Kulbokas said that property demand is highest in Vilnius. It is determined by internal migration, improved expectations and favourable financing conditions.