New apartment transactions are at the peak, while the commercial real estate market continues to grow

2018-07-18

                                                      

In the first half of 2018, the real estate market maintained positive moods and good liquidity, although its growth slowed down. A jump of transactions recorded at the new housing segment reflected the past sales of developers that likely to have reached the peak and forecasts are not very favourable for the rest of the year. Vilnius and Kaunas were the most active in business centres and trade segments. For more information you are welcome to read  the review of the Lithuanian economy and real estate market for the first half of 2018 jointly prepared by Šiaulių Bankas, real estate company Inreal and law firm COBALT .

"Stable economic development and increased salary make the Lithuanians feel more optimistic about the future. Increasing activity of the country's industry, export volumes, attracted new investments, positive labour efficiency also predispose positively. This reflected in crediting statistics: household mortgage loans grew by 8% over the past half year, consumer loan portfolio - by 5%. True, it is likely that credit rates in the near future should slow down due to the monetary policy normalization carried out by the European Central Bank, "- says Tomas Kipišas,  Broker at Financial Markets Unit of Šiaulių Bankas.

In the first half of 2018, sales of old apartments in Vilnius, compared to the same period of 2017, remained stable and amounted to 3400 apartments in total. Whereas, sales of newly constructed apartments totalled to 2000 which is by 27.5%. more than last year. As a matter of fact,  it should be noted that for the most part these impressive numbers come from the previous period "accumulated" sales of the primary market developers ",- says analyst of INREAL group Robertas Žulpa.  During the first half of 2018, the growth of apartment transactions slowed down in Kaunas. Increasing  popularity of individual houses / cottages segment could account for one of the reasons. Nevertheless, prices for new housing increased in all segments. In the first half of 2018 the Klaipėda's apartment market slowed down compared to the same period last year, whereas, the market for individual houses / cottages jumped up.

Favorable business and economic environment makes the segment of offices currently very active and liquid, demand for modern offices is extremely high. During the first half of 2018, retail sales in Lithuania increased by 9.5% compared to the corresponding period a year ago.

According to associated lawyer of the law firm COBALT Simas Paukštis, the year 2018 did not start with a particularly significant news in the area of law and amendments made to regulation were both moderate and more intended to harmonize legal regulation with other areas or with European Union legislation.