After almost three years of house price falls, the housing market in Lithuania is finally recovering – according to Global Property Guide.
The apartment price index for five largest cities rose slightly by 0,1% in October 2011 on the same month last year, according to Ober Haus. However, when adjusted for inflation, house prices are still down by 4,4% over the same period.
In Vilnius, the capital city, property prices rose by 3% to 1,208 euros per sq. m., according to the preliminary figures from Lithuania’s registry office. On a quarterly basis, property prices fell by 0,8% in Q3 2011, after a 2,2% drop in the previous quarter. House prices in Vilnius are still down by 39,1% from the peak in December 2007.
On the other hand, property prices in all other cities (excluding Vilnius) rose by 6% y-o-y to Q3 2011. House prices dropped 2,9% q-o-q to Q3 2011.
After registering double-digit house price increases from 2003 to 2007, house prices started to decline in 2008 due to the global crisis.
- In 2008, house prices dropped by 15,2% (-21,8% inflation-adjusted)
- In 2009, house prices plunged by 26,8% (-27,7% inflation-adjusted)
- In 2010, house prices fell by 3% (-6,4% inflation-adjusted)
Lithuania’s property market is expected to continue recovering, fuelled by strong economic growth (with projected GDP growth rate of 6,2% in 2011).
Source: http://www.globalpropertyguide.com/Europe/Lithuania/Price-History