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Apartment prices

Money is no longer enough for those who want to buy a home in the capital, but there is another bad news

In January, 7 per cent fewer houses were sold in the primary vilnius real estate (RE) market than in December, while prices of vacant houses increased by 2 per cent during this period. Experts estimate that in January, more than 15 different projects raised the prices of homes they sold. The rise in prices is also due to the fact that residents buy out the cheapest
"The biggest obstacle for those who want to buy a home in the capital, as in previous months, is the lack of an initial contribution. With a consistent rise in RE prices, the accumulated funds may not be enough and additional savings will have to be made," says Aurimas Chigus, head of Mano numai, which owns the numai brand. For example, according to him, if residents planned to buy a two-room apartment in December for 135 thousand. In January, such an apartment could already cost over EUR 138 000. Euro. In such a case, the initial contribution would also have required an additional EUR 450, which is not the case for everyone to save time during the month. Developers of new projects raised prices

Experts estimate that in January, more than 15 different projects raised the prices of homes they sold.

According to the company, in January, 395 dwellings were sold in the primary market of Vilnius REAL, or 7 per cent less than in December, when 425 of them were sold. The average price of a house sold with partial decoration amounted to EUR 146 thousand. This was 7% higher than in December. During the first month of this year, 8 completely sold-out projects were registered in Vilnius, and 4 new projects presented their dwellings to the market. The new projects offer 559 new dwellings to the market, but already on the last day of January only 488 dwellings remained of them. The average cost of their square meter was about 2650 euros. According to A. Chigaus, real price growth in terms of vacant housing was 2%, which was due to several reasons. First of all, the quant. (m) the price was higher than that of existing dwellings on the market. "The growth is also due to the fact that the projects first actively buy out the cheapest dwellings. This trend leaves relatively more expensive assets on the market. And the third reason is the active and continuing price growth of existing projects. For example, more than 15 different projects raised the prices of their homes for sale per square metre in January," explains A. Chigus.

Experts estimate that in January, more than 15 different projects raised the prices of homes they sold. According to him, currently in the primary housing market of Vilnius you can find about 2875 dwellings (6.5 per cent more than in December) with an average sq. m. m price is about EUR 2700. "Importantly, of the total housing supply in the recall market, only 19% of homes are already built. This means that the majority of customers can only choose a home "from paper". In January, more than 90% of all homes purchased on the primary market were bought in this way," the expert notes.

Rent prices are also rising according to the Company, currently in the secondary market of Vilnius RE the average price of an apartment for sale with full decoration reaches 170 thousand. Eur 2700 per sq. m. m, and the average area of apartments for sale is 60 sq. m. This price remained relatively stable compared to December. But according to A. Chigaus, the increase in house rental prices is observed in Vilnius. In January, the average rental price of rented housing with a full finish was about 600 euros and was about 8.5 percent higher than in December. The average area of the rented apartment is approximately 50 sq. m. "In January, the annual rental yield on rented housing was about 4.8 per cent. Landlords currently find it most worthwhile to rent, and tenants don't have to rent one-room apartments. Housing rental prices in the capital do not yet fully reflect the increase in REAL prices, therefore, we estimate that rents in Vilnius will grow faster in the near future," says A. Chigus. According to him, when assessing the current supply, the average rent for apartments offered for rent has decreased by EUR 30 compared to December and amounts to EUR 620 per month for 50 sq. m. m apartment.

Source: For those waiting for apartment prices to fall, the expert has the answer: not everyone will like it (lrytas.lt)

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