Owning the first home for a young person or family is a serious commitment, but increasingly, “first” does not mean “last”.
According to Mindaugas Statulevičius, head of the Lithuanian Real Estate Development Association (LNTPA), the frequency of house changes has been clearly visible in Lithuania in recent decades. Although official statistics on this are not collected, in his estimation, Lithuanians change about 3-5 of their own homes during their lifetime, and in this respect they are approaching the indicators of Western Europe.
“It used to be simple: parents’ apartment, dormitory or rented apartment during or after studies, and 1-2 own homes. But now there are many more possibilities, diversity, mobility, which sometimes leads to up to 5 changes of one’s housing during one’s life. Lithuanians really want to live in their own home, it is much more attractive to us than renting, so accordingly we are more and more boldly changing our first own home to a new one, bigger or more relevant for a specific stage of life.
And if financial opportunities allow, Lithuanians much prefer to keep their previous houses as an investment instrument by renting them out to others. It is especially desirable to maintain the previous dwellings when they have already proven themselves: inconveniences have not arisen, the environment and surrounding infrastructure have improved, the value of the property has risen,” comments M. Statulevičius.
He points out that according to the data of the “Housing Affordability in Lithuania 2024” study conducted by LNTPA this year, 85 percent Lithuanians live in owner-occupied housing, and 55 percent of Lithuanians living in rented accommodation plan to purchase their own in the coming years. On the other hand, as many as two-thirds of tenants surveyed by LNTPA currently rent housing because they have no other option, and as many as 71%. respondents miss more effective state housing policy solutions.
“Lithuanians long for their own home and perceive it as a long-term value – both for life and for investment. However, since this is perhaps the biggest purchase of a person’s life, it is really worth paying attention to the fact that the home creates as much value as possible: it is energy efficient, well-maintained, rationally planned and simply such that it will not be a roof over your head, but an asset that increases value in the long term.” , – says M. Statulevičius.
Think about others
According to Žydrūnas Matuz, manager of the real estate development company “HOMA Development”, a more dynamic and mobile society and the frequency of changing houses approaching European standards also dictates the main rule when choosing a first home: it is necessary to think not only about your wishes and tastes, but also about the sale or rental of the property in the future.
Company photo/Žydrunas Matuzas
“And although it seems to people that the property they buy and install for themselves will automatically be attractive to others in the future, there are many small but important nuances here. A simple example would be the location: there is definitely a rather strong tendency to buy the first house in the native area – near parents or grandparents. It is really convenient for new residents, especially those raising small children, but it is worth asking the question whether the district and the neighborhood will be attractive on the market when these houses need to be sold or rented”, says Ž. Matuzas.
According to him, a common question and at the same time a challenge is the investment in home furnishing and interior. In today’s secondary market, an adequate ratio of location, property class and apartment furnishing is important. In other words, excessive investments in the interior will neither be understood nor paid off in the economy class housing and district. According to Ž. Matuz, this is not a rare case when buying a first home: people who have the means seek to furnish it with quality. However, thinking about the future, it is better to invest additional funds not in a luxurious interior, but in details that preserve value better in the long term: project exclusivity, attractive location, rational layout, better materials, lower density, etc.
He also advises buying a first home based on a person’s current or immediate needs. In the first decades of independence, in the presence of financial opportunities, there was a noticeable tendency to buy the first house and furnish it “for life”: for yourself, children and other possible cases of “life”. In this way, for example, four-room apartments or huge private houses far from the city center appeared. Even if it were affordable to individuals today, it would generally be neither universal nor attractive in the aftermarket.
“There is unanimous agreement in the market that it is easiest to sell or rent small, convenient, central city apartments. Young professionals or young families are likely to need such a first home. Therefore, even when needs and circumstances change, it will be much easier, faster and more profitable to sell or rent a compact, well-located apartment, by directing the proceeds to a larger purchase. Finally, such a tactic will make it easier to purchase newly built houses in the future”, asserts Ž. Matuzas.
When talking about the construction age of the apartment of interest, he would first recommend a new home: it will usually be more comfortable, of higher quality, more efficient and easier to find a buyer or tenant in the secondary market. On the other hand, when buying a new home, it is important to make sure of the developer’s experience and reputation: defects, lack of guarantees, low-quality solutions or poor maintenance can cause problems not only during future sales, but also after moving in. Of course, depending on the location, opportunities and needs, housing of older construction should also be considered, but before buying it is recommended to assess its technical characteristics and condition with the help of specialists in the relevant field.
Technical aspects
The head of HOMA Development also draws attention to the fact that if the southern and eastern directions of the windows were previously considered prestigious, now the warming weather is correcting this rule. When choosing a house today, it is necessary to assess whether an apartment oriented to the south or west will not be too hot, eastern directions are getting more and more attention, and the north can be attractive to those who value quality sleep.
“Also, a parking space will not only be a convenience, but also an investment. Despite the promotion of sustainable mobility, parking in big cities remains one of the most pressing issues. We see that with the rapid development of certain neighborhoods, a parking space not purchased in time turns into a lost opportunity. Even if a young person doesn’t have a car at the moment, a parking space is highly recommended if possible: it can be immediately rented out to others, its value will increase and it will be useful in the future either to the buyer himself, or will create additional benefits when selling the entire property”, comments Ž. Matuzas.
When choosing a first home, he also recommends making sure that the house is equipped with a high-quality ventilation and recuperation system, or at least the possibility of installing one is left: modern houses are extremely tight, so it would not be worth saving at the expense of fresh air and, accordingly, brighter thoughts today. And when thinking about selling or renting a home, one of the most effective solutions is an air conditioner, which can significantly increase income.
“Both for our own sake, as well as for evaluating future prospects, it is very important to examine the city’s plans: what else will be done in the area and what will be possible to do. Views of forests, parks or a larger space can only be temporary: it is important to familiarize yourself with the plans and possibilities of the nearest territory on the municipality’s website or other sources”, asserts Ž. Matuzas.
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Elf or as an additional asset,” notes Ž. Matuzas.
In the context of housing in Lithuania, awareness of both personal and market factors is crucial. The shifts in living preferences highlight a growing sophistication among home buyers, reflecting trends seen in more established property markets in Western Europe.
The conversation around housing in Lithuania emphasizes not just individual satisfaction, but also a broader understanding of real estate as a strategic investment. With the aspiration to own homes influencing both market dynamics and personal decisions, buyers are encouraged to adopt a forward-thinking perspective. This includes considering future resale value, market conditions, and potential changes in lifestyle that could affect housing needs.
the evolving landscape of homeownership in Lithuania showcases a transition towards greater mobility and investment-mindedness among citizens. As such, prospective homeowners are urged to balance personal desires with practical investment considerations, ensuring that their choices align with long-term aspirations and market realities. Whether it is a first home or an investment property, the emphasis is on making informed and strategic choices in an increasingly competitive housing market.
