News

2013.08.09 09:44

Why are foreigners more active in buying Lithuanian coastal real estate?

DELFI.lt 2013.08.09 09:44

The most common buyers of real estate in the Lithuanian seaside are foreigners. Real estate agents say that the reason is simple: foreign buyers tend to pay more, writes www.delfi.lt. 

The most common buyers of real estate in the Lithuanian seaside are foreigners. Real estate agents say that the reason is simple: foreign buyers tend to pay more, writes www.delfi.lt.

“New apartments in resort cities are the most popular among foreign investors, although the number of transactions is relatively small. Russian citizens, for example, purchase around 10 to 15 flats per year in Palanga,” stated the business development manager of the real estate project development company ‘Eika’ Domas Dargis, in an interview for the magazine ‘Investuok’.

                                                                            

“The market in resort cities is two-tiered: Lithuanian citizens tend to pay up to 6,000 Litas per square meter, while foreigners pay from 8,000 till 10,000 Litas per square meter,” Dargis explained.

When speaking of the real estate market in other places in Lithuania, the expert stated that the only liquid real estate market in the country is in Vilnius, where real estate sells fairly easily and fast.

Nevertheless, Marius Čiulada, branch manager of old-town real estate company ‘Ober-Haus’, noticed that last year the highest percentage of real estate purchases per thousand residents was  made in Klaipėda.

“During the time of an economic upturn, Klaipėda lagged behind other major cities in the country, but it is catching up now,” said Čiulada.

Experts estimate that the highest percentage of properties sold in the new apartment market is that of the low- and middle-class apartment range.

“The market for new, prestigious apartments is not liquid, the turnover is scarce, and sales are almost at a half. However, I have no doubts that in the future this market should liven up,” said Dargis.

Dargis advises that when investing in real estate, the first step is to analyse the market, and find out what projects are available at different price points.