The booming real estate market in Lithuania is causing concerns, Arvydas Avulis, head of the country’s major property developer Hanner, told Žinių Radijas news radio.
According to Avulis, the fears about post-pandemic inflation is partly responsible for the booming property market.
“Reasonably many people, who have accumulated wealth, are watching the financial injections which are aimed at restoring the EU economy after the pandemic,” he said. “These funds are flooding into the market and people understand that there may be inflation.”
“The first signs [of rising inflation] are seen in the markets of raw resources. For example, the price of metal has risen more than 50 percent,” he added.
According to Avulis, people are therefore looking to spend their savings due to the long-term inflation risks.
“We have ourselves been somewhat surprised by the results of the first quarter, where compared to the first quarter last year, there has been a 70 percent increase in the sale of property in Vilnius,” he said.
“This is not sustainable growth,” added Avulis.
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