[4 images] Was ist mit den Preisen von Vilnius passiert? „Naked Walls“ -Apartments in diesem Gebäude kosten 0,5-1,7 Mio. Euro.

I borrowed images from miestai.net and aruodas.lt

Around 2015, new construction in Vilnius and Kaunas was remarkably cheap compared to e.g. Stockholm or Göteborg.

Today, it’s more expensive than many places in Western Europe. It’s cheaper in Antwerp, for example. I can find more appealing options in Rotterdam. Why is Vilnius so expensive? Makes no sense to me. What am I missing?

Looks like a renovated commie block.

A response from Gemini if anyone interested:

Home prices in Vilnius have indeed seen significant increases and can be comparable to those in Western European cities like Rotterdam. Several factors contribute to this phenomenon:
Factors Driving High Home Prices in Vilnius:
* Strong Demand and Limited Supply: This is a recurring theme in Vilnius’s housing market.
* Growing Population and Incomes: Vilnius is a growing capital city with increasing economic activity. Rising wages and a growing number of highly skilled professionals choosing the city for career opportunities and quality of life fuel demand.
* Foreign Investment: Vilnius has become an attractive investment target for foreign investors, further driving up prices.
* Household Formation: As families form and grow, the fundamental need for housing increases demand.
* Lagging Construction: Despite the demand, construction of new housing often struggles to keep up, creating a supply shortage. Bureaucratic processes and rising construction material prices can hinder development.
* Affordability Challenges: While wages are rising, for many single individuals on an average salary, buying a home in Vilnius is becoming increasingly difficult, requiring significant savings for a down payment.
* Economic Growth and Stability: Lithuania’s steady economic expansion, coupled with low unemployment and relatively low household debt, provides a strong foundation for the real estate market, preventing severe downturns seen in some other European countries.
* Low Interest Rates (Historically) and Favorable Financing Conditions: While interest rates have fluctuated, periods of historically low rates and good financing conditions have made it easier for people to get mortgages, thus boosting demand.
* Speculative Attitudes: There have been periods where housing was purchased with the expectation that its price would simply increase, leading to speculative buying that further inflates prices.
* Regional Investment Hub: Vilnius, along with other Baltic capitals, has become a more prominent investment destination in Eastern Europe, attracting capital that might otherwise go to more established Western markets.
Comparison to Rotterdam:
While average prices can vary significantly depending on the specific neighborhood, type of property, and recent market fluctuations, it’s insightful to compare the underlying dynamics:
* Rotterdam’s Market: Rotterdam, like many major Dutch cities, experiences high housing prices due to:
* High demand: Strong population growth, especially from international residents, and a robust job market contribute to significant demand.
* Limited space: The Netherlands is a densely populated country, and land for new construction is scarce, especially in popular urban centers.
* Investment attractiveness: Rotterdam is a major port city and economic hub, attracting both domestic and international investors.
* Low interest rates (historically): Similar to Vilnius, low interest rates have also fueled demand in the Netherlands.
* Government policies: Certain regulations and tax incentives can also influence the market.
In essence, both Vilnius and Rotterdam share common drivers of high home prices: a strong imbalance between demand and supply, fueled by economic growth, population increase, and investment interest in attractive urban centers. While Rotterdam has been a more established and expensive market for longer, Vilnius has experienced rapid price growth in recent years as it catches up and solidifies its position as a desirable place to live and invest.

If you dont understand something doesnt mean its stupid, and it doesnt mean you are stupid. It probably just means is not for you. Its basically apartments in the city center with a river view and a terrace on the roof, so why should they be cheap? Vilnius is a great place to live and i think there are plenty of people wanting to pay the price. i doubt that people paying 500k for an appartment are worried about having a public transport stop or a bike lane near their house.

If people buy at those prices, they are right to sell at those prices.

If the building remains unsold, or the builder has to lower prices significantly to sell, you are right to question the price.

Are you ready mentally to not being right? Because the price trend is clear, and it’s safe to assume the company selling did the due diligence process.