Aug 16, 2009
Monthly Lithuanian real estate review: July 2009
Ober-Haus Real Estate Advisors is presenting the Lithuanian apartment price index (OHBI), which shows summarized changes in prices for apartments in the five largest Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai, and Panevėžys).
In July nominal price index fell 0.9% m/m and 28% y/y, which is 12th consecutive y/y decline and the largest ever. Monthly deterioration rate reduced in line with historical trend. During the second quarter of 2009, apartment prices fell 26.5%, slightly more than 22.4% decline in GDP. Too bad, the bottom is not here yet.
In real terms, the index contracted 0.1% m/m and 30% y/y, meaning inflation is still curbing into yearly prices.
Real estate price index (OHBI)
The yearly rate of weakening has been negative for already a year and rising. Month-on-month prices have been falling for already 19 successive months. Meanwhile, activity in the market fell to a record low, with only 50 new Vilnius apartments sold in July. This compares to 3,500 flat deals monthly during the end of 2007 in the whole country.
OHBI index change
Rate opinion
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