Should You Invest?
Lithuania is a beautiful country located on the coastline of the
Baltic Sea. Its location, whilst offering breath-taking scenery and
temperate climate, occupies a key point on the sea and land
route between the EU and the CIS making Lithuania the hub of a
thriving import and export market. Foreign direct investment into
the country has been steadily increasing and reached 4.7 billion
Euros in January 2005.
Whilst its neighbours have suffered property market crashes,
Lithuania has so far staved off a downfall and it is hoped may
continue to do so. Prospective investors though should still tread
with care as economic stability is not guaranteed and the volatile
nature of its neighbours could still spill over and affect
Lithuania.
The costs of living in Lithuania are very low when compared with
other EU countries and access is improving with budget airlines
flying from the UK and Ireland.
- NATO and EU Membership
- Low transaction costs
- No restrictions for foreign buyers
- Well-developed Transportation Networks
- World-Standard Export Production
- Strong FDI Growth
- Strong economic growth
Rental Yields
Rental yields in Vilnius are low, at around 4.39%, due to the
fact that rents aren't rising in line with house prices. Unlike
other similar countries, suburban houses yield more in Lithuania
than properties in the city, at around 6.3% to 7%.
Price History
Prices in Lithuania have been slowing over the last year as a
result of the downturn in Estonia and Latvia's markets.
Demand and activity in Lithuania though are still strong and in
the busiest summer months, supply failed to meet demand - good news
for invetors. New-build projects then are selling well but at
fairly elevated prices. When looking for apartments in Vilnius,
buyers are met with two market extremes - either luxury over-priced
properties or poor quality and poorly planned ground floor
properties that are not worth the investment.
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