The market for new apartments continues to display recovery
Tom Sovijus Stabnick, Head of Investment and Analysis of the Inreal Group, spoke more about it.
– How should you appreciate the leap of sales of new apartments in May – is it an exclusive month or a sign of sustainable recovery and you can expect it?
– We are probably talking about the original home market. In the last six months, less than 500 apartments were sold in Vilnius, including the cottage segment. The average number of apartments sold this year is over 500 apartments per month. This would be reminded of the results of 2019-2020 (despite several months of pandemic). The market is evenly recovering from the end of last year, the start of the fourth quarter.
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– Could it be that such buyers’ optimism could have been influenced by declining interest rates and Euribor?
– quite right. One of the main reasons is the decline in loans. However, the fact that salaries, though slower, still increased, were also influenced. Housing prices remained quite similar, as 2021-2022, when housing prices rose rapidly and residents failed to follow them with salaries, the interest rates contributed further, which was a double blow to buyers.
– Let’s analyze buyers. Are we talking about people buying housing for themselves, or are investors coming back to the market?
– These two groups should be distinguished, because in very rare cases when buying housing for yourself that time is very inappropriate. The housing market is not a stock market where you can participate or not participate. Everyone is involved in one way or another in the housing market. Someone purchases his own home, someone renting. If rent, the landlord seeks to earn from home rent. There are several components for the investment for housing. If there is a high demand for rented housing on the market, cheap borrowed money and expected value increases. Today, jumping prices are not expected, but interest has fallen. Meaning, it is not the case that everything you have received from the rent will pay for a home loan. Some buy without borrowed funds, perhaps justifying themselves both objectively and subjectively, that the housing will remain for children. Perhaps their own needs will change – you will need another home. Purchasing for both personal use and investment has always been.
Thomas Sovius Stuphick. LNK stop shot.
– The political situation has always been a component that really had a great deal of influence on housing and considering, buying or not buying. For example, the deployment of the German Brigade in Lithuania was able to calm people a little and encourage you to buy?
The housing market is not a stock market where you can participate or not participate.
– According to the data of the Territorial Patient Fund in Vilnius, about 700 thousand people live. of the population. According to the Center of Registers, over 600 thousand. of the population. It goes without saying that in such a large number the population will have those who are more sensitive to geopolitical news that feel calmer about the deployment of the German brigade. It could help them make a decision. We live with an inadequate neighboring state, but we need to live on, the housing market is not a custom.
– Living somewhere is needed.
– That’s it.
– We observe the growing demand returning to the norm when it comes to the pre -marsh period. Houses seem to be declining – does it not program a new price jump in the near future?
– From the middle of 2022, when the primary home market slowed down severely, a respite period came to be supplemented. Today it is close to record quantities, but a few things should be evaluated. First of all, a particular resident does not buy medium housing – he is looking for what meets his needs. The supply structure can be more accessible at different periods, suitable for buyers. In other periods, less, regardless of the amount of housing in the supply.
