In 2018, social and economic catalysts will stimulate the Lithuanian Real Estate (RE) market
2017 was another year of success for both the Lithuanian real estate sector and the entire economy. In all RE segments, the market remained active and liquid. The slowdown in the number of housing purchase and sales transactions and the high activity of developers has hindered the rise in prices. Business centers and logistics segments were the most active in Vilnius and Kaunas. Reservedly but surely, the hotel segment grew. For more about this see the overview of the Lithuanian economy and real estate market prepared jointly by Šiaulių bankas, real estate company Inreal and law firm for 2017-2018.
“The favorable conditions for the activity of the RE market were created by general economic growth of Lithuanian and the surrounding markets and the environment of low interest rates. For example, the year was successful in attracting foreign investment: it increased by 8.3 per cent during the third quarter of last year. This was felt by the construction industry: construction of non-residential buildings, in particular, increased by 16 % during the first three quarters of the year, the construction of residential buildings did not decrease as well. At the same time, the volume of mortgage loans was growing”, Rokas Lukošius, analyst of Šiaulių bankas’ Market and Treasury Department, commented on the factors influencing the growth of the RE market.
According to Inreal analyst Robertas Žulpa, maintaining the same level of activity is very complicated, but the growing number of Vilnius residents, the creation of new jobs and rising salaries will allow the capital's RE market to maintain high activity and maybe even moderate growth. As far as Kaunas is concerned, new business centers and factories are actively developing there, creating well-paid new jobs, which is why in the near future it will act as a catalyst for the housing market and is highly likely to have a positive impact on the entire growth of the real estate sector. Klaipėda’s market, despite a slight decrease in the number of purchases and sales of apartments, has also taken a positive outlook.
According to law firm COBALT associate lawyer Simas Paukštis, the 2017 was moderate in the legal regulation changes, which has once again proved one of the oldest known truths: stability of the legal regulation is one of the prerequisites for successful business development.