“The market has fully recovered” but…
According to the preliminary data of the analysts of the real estate projects company “Citus”, the number of new housing transactions in Vilnius grew in October – the absolute best result of the last three years was recorded.
In October, the sale of 386 new apartments and cottages was agreed in Vilnius – almost half as many as at the same time last year and almost 90 percent. more than last year.
According to Inreal’s calculations, 282 total sales were recorded in Vilnius’ primary housing market in October (323 new agreements, 41 housing returned to supply). This is slightly less than in September (respectively: 309, 347, 38) and almost the same as in October last year (284, 308, 24).
In October of this year, buyers purchased 401 newly built apartments in Vilnius, the value of which is 70.1 million. euros, according to data from Hanner analysts. In October of this year, 43 percent of the apartments were sold. more than last year, when buyers bought 280 apartments. The market also recorded 33 preliminary contract terminations last month.
“Sales are increasing for the fourth month in a row, which shows that the market has fully recovered. Growth is fueled by more favorable financing conditions, lower inflation and rising wages. These factors have restored buyers’ confidence in the market and provide a basis for further growth,” says Arvydas Avulis, chairman of Hanner’s board.
Šarūnas Tarutis, Head of Investments and Analysis at Citus, secondly, the size of the Euribor plays one of the most important roles, alongside rising wages and stable housing prices, when assessing the affordability situation.
“After the European Central Bank lowered the base interest rates again in October, the value of Euribor dropped below 3%. tags. Buyers’ expectations regarding improving housing financing conditions have been fulfilled, so their high optimism remains. However, we also have opposite signals in the housing market: since November, new requirements for the development of projects have come into effect, and further increasing bureaucracy may put a foot on affordability in the future”, warns Š. Tarutis.
By the way, housing prices are already rising, and buyers are losing an important advantage.
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**Interview with Arvydas Avulis, Chairman of Hanner’s Board**
**Editor:** Thank you for joining us today, Arvydas. Recent data from various analysts indicate that the real estate market in Vilnius has witnessed a significant uptick in sales. Can you give us an overview of the situation?
**Avulis:** Absolutely, I’m happy to share insights. October was a remarkable month for the Vilnius housing market, recording the highest number of new housing transactions in the past three years. We saw an increase in the sale of newly built apartments, with 401 units sold worth around 70.1 million euros.
**Editor:** That’s indeed impressive! What key factors do you believe are contributing to this growth in the market?
**Avulis:** The growth can largely be attributed to improved financing conditions, a decline in inflation rates, and rising wages. These factors have significantly restored buyer confidence, encouraging more transactions. Additionally, the overall positive economic climate is supporting this upward trend.
**Editor:** While the numbers seem promising, there is an indication that some aspects of the market remain a concern, including the terminated contracts. Can you elaborate on that?
**Avulis:** Yes, while we are seeing growth, it’s essential to also acknowledge the challenges. In October, we recorded 33 preliminary contract terminations, which highlights some underlying issues that still exist in the market. These could be due to various reasons, such as buyer hesitancy or economic uncertainties. However, I believe the overall positive trajectory outweighs these concerns.
**Editor:** How do you see the future of the Vilnius housing market evolving in the coming months?
**Avulis:** If the current trends continue—specifically regarding financing and economic stability—I remain optimistic. We expect further growth as buyers regain confidence and new projects come to fruition. That said, we must remain vigilant and address any emerging challenges promptly.
**Editor:** Thank you for your insights, Arvydas. It sounds like an exciting time for the Vilnius housing market.
**Avulis:** Thank you for having me. I look forward to seeing how the market continues to develop in the coming months.
