Lithuania Property Investment For Sale
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Lithuania Property Investment For Sale

 

"A key location makes Lithuania the hub of a thriving import and export market."

 

The most populous and largest of the Baltic States, Lithuania like Estonia and Latvia emerged from Soviet influence in the 1990s to become one of Europe’s fastest growing economies joining the European Union and World Trade Organisation in 2004.

Helped by foreign investment and business support Lithuania moved quickly to a market economy at break neck speed, that is until the global financial crisis hit it harder than any other EU member. The property bubble burst and high tax rates and an enormous contraction in exports hit the country hard.  However, a committed government undertook rapid economic reforms that quickly bought it out of the deep recession, making it one of the fastest growing economies in the EU with a thriving import and export market.

With Lithuania’s main trading partners being Russia, Latvia, Poland and Germany much emphasis has been placed on joining the euro and unemployment is falling.  However unlike Estonia and Latvia the Lithuanian property market is not in full recovery yet.
 

Country Guide

Geography

Lithuania borders the Baltic Sea and is a largely flat country made up of lakes and forests.  Vilnius, Lithuania's capital is situated 200 kilometres inland near the Polish border and is where the majority of  investors have traditionally bought property. The Corunian Peninsula is a spit of land creating a huge lagoon that is popular with tourists.

Government

The government in Lithuania is a parliamentary democracy. Lithuania's government is actively involved with international organizations, including the United Nations and the World Trade Organization, and is a valued member of both the European Union and the North Atlantic Treaty Organization.

The political system includes a central government, and forty-four regions with eleven municipalities. Public opinion toward political officials and their effectiveness and trustworthiness is mixed as corruption can be a problem in some governmental bodies. 

Language

The official language spoken by 82% of the population is Lithuanian. The majority of Lithuanians can also speak Russian as they were required to learn the language when part of the Soviet Union. German and English are spoken throughout the country, although mainly in hotels and popular tourist areas. 5.6% of the population speak Polish. 

Standard of Living

The standard of living in Lithuania is low compared to many other EU countries. The society in Lithuania is mainly middle class although pensioners suffer poor conditions due to an insufficient social security system.  The country does however have a well developed infrastructure and high average income.

 

Country Economy

A member of the WTO and the EU, Lithuania has been defined by the UN as a country with a high average income. 

After moving away from the Soviet Union in the 1990s Lithuania moved quickly to a market economy, that is until the global financial crisis hit it harder than any other EU member. The property bubble burst and high tax rates and an enormous contraction in exports hit the country hard.  However, a committed government undertook rapid economic reforms that quickly bought it out of the deep recession, making it one of the fastest growing economies in the EU with a thriving import and export market.

With Lithuania’s main trading partners being Russia, Latvia, Poland and Germany much emphasis has been placed on joining the euro and unemployment is falling.  However unlike Estonia and Latvia the Lithuanian property market is not in full recovery yet.

Lithuania offers highly skilled and efficient production at a fraction of western European costs. The export and import industries are constantly growing, with trade increasingly orientating towards the west. Since rebounding from the 1998 Russian financial crisis, Lithuania is the Baltic state that has conducted the most trade with Russia.

Key industries:

Mineral products, textiles and clothing, machinery and equipment, chemicals, wood and wood products, foodstuffs, tourism.  There is gradual shift towards a knowledge-based economy with much emphasis on biotechnology and laser manufacturing as well as IT and mechatronics.

 

Hotspots

Vilnius

Vilnius, Lithuania's capital city has the most active property market in the country. In general new builds are the most sought after of properties. Most flats are sold off-plan before they are completed.

Maisia Galos City and Cerviskiuk are both areas near to Vilnius that offer lower priced properties with access to the city centre and all its amenities.

Klaipeda

Klaipeda is a large, multi-modal transport junction of sea, land and railway routes, connecting Eastern and Western industries and markets in the shortest possible ways. This ideal trade location makes it an exciting place to invest as improvements to the area are constant.

Kaunas

Kaunas, Lithuania's second largest city is the centre for culture, sciences and industry. The city is known as the 'City of Universities and is a key provider for services in rural areas. The real estate market has only just started to develop and house prices are lower than other major cities. Prices do vary dramatically between the suburbs and the city centre.     

 

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