Let’s rejoice – we have wealth that has become more expensive

Why the real estate value is so strong in such a short period of time and what the fears that it may be related to the imminent universal real estate tax was also commented on by Saulius Vagonis, Head of Ober-Haus.

– How would you explain such a change in value in a relatively short period of time?

– When assessing, it should be understood that price changes are not analyzed in the same period. The Center of Registers now has a new starting point – 2025. January 1st., Roughly, calculated on the basis of 2024. in transactions. The so -called increase, compared to the previous mass evaluation carried out in 2021, is mostly aimed at, according to our data, about 50-60 %. If the real rise in market prices, the markets actually increased by about 50-60 % during that period. Thus, it is not surprising that the Center of Registers has quite accurately adapted to the real changes in the market.

This means that, for example, a person whose property in 2021 January was worth 100 thousand. can now have assets worth EUR 150,000. or even 160 thousand. euros. The situation is certainly explained.

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– When it comes to big cities – what can be most surprised by higher prices?

– It’s hard to say for sure, because the Center of Registers has its own mass evaluation methodology and we count a little differently. According to our data, Vilnius, Kaunas and Klaipėda were more expensive than Šiauliai or Panevėžys.

But the values ​​of real estate not only depend on time – they also respond to other changes. For example, if a person moved to a less developed area 5 years ago, but during that time more objects were built in the area, then it is natural that the value of the Center of Registers was more than the entire market. In such cases, the value may even double, but from the side of the property, this is normal.

– And what to do for Neringa residents, where the prices of the square meter are one of the highest in Lithuania? Maybe prices will exceed 300,000. euros?

– It may be, depending on the area of ​​the apartment. However, most apartments in Neringa are quite small – 20-30 sq. M. m, so they reach 200-300 thousand. The tax value of EUR 1 million is more difficult. It should be noted that the tax values ​​of the Center of Registers are usually lower than the real market value. Comparing the current prices of the Center of Registers with real market prices, we can see that the most common value of the Center of Registers is 10-15 %. lower than real prices and sometimes as much as 20-30 %. This means that the real market prices for how much a person can actually sell the apartment are still lower than what the Center of Registers is calculated.

Photo by J. Elinsk / ELTA

– Some are considering whether this value growth is not an attempt to raise more taxes, especially when assets previously tax -free are now entering the real estate tax zone?

– I would be skeptical about such conspiracy theories. As I mentioned, the price leap corresponds to the market price leap. The assessment is not done every year, but every five years, so it is natural that a higher percentage is accumulated.

If the evaluation were performed every year, growth would be a gradual and less shocking. In addition, data analysis, information technology, artificial intelligence are being used, maybe the registry center models are becoming more accurately reflecting the market situation than before.

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– Is it likely that there will be big surprises in smaller cities, not just in big cities?

– We have no details yet, but when looking at the overall price change, it is estimated that most residents will see at least 50 percent. a change in price. Both in five years and increased prices in Lithuania. On the other hand, let us rejoice – we have wealth that has become more expensive. If someone is considering selling, it is good news as it will be possible to get a larger amount.

– What do people who live alone – to widows or divorced? How will this situation continue?

– Everything is in the hands of our authorities. It all will depend on what taxation system the government will choose: what discounts, tariffs and base will be applied. The fact is that the tax value increased significantly. Thus, it is up to the authorities how to adjust so that this fee is not a stone under the neck to a person. Taxes must exist, but they must be correct.

It is also worth noting that the current law on the dispute of the tax value is quite inflexible. A person, if the state overestimated his property, may challenge that value and make the valuation of independent property. But the essence is that it can only if the tax value determined by the state is 20 %. different from the real market value. So if the value is different, say, 15 percent. – It is no longer possible to challenge such a difference.