Where is the best place to buy real estate at the moment and when will the prices fall?
The global crisis shook the real estate market as well - Lithuanians gathered their money and started investing it in order not to depreciate.
There are thoughts that the current price spike is short-term and that real estate prices will fall in the long run, and those who rushed to take out loans and buy the property after the pandemic started will regret it. Specialists are convinced that investing savings in real estate is not a bad idea and should not be delayed, but it is worth buying after careful calculation.
The founder and manager of Profitus, Viktorija Čijunskytė, said that when buying real estate for personal use, you should buy it when you really need it. Since positive demographic indicators are present in Vilnius and Kaunas and are also improving in other major cities of Lithuania, demand will remain, and the opportunities for buyers are particularly good at the moment:
"If we look at affordability, it is still at the highest level. After evaluating inflation, the purchasing power of money, and the purchasing power of the population, and comparing the proportions with the years 2006-2008, now we can buy much more than then."
According to Viktorija Čijunskytė, it is worth investing in real estate now. A real estate bubble is the process of artificially inflating demand, which inflates the price as well. "We saw this more than 10 years ago. Now the demand for real estate has jumped to unprecedented heights due to the fact that people in Lithuania have accumulated record amounts of money and have nowhere to store those savings without the threat of devaluation.
The number of unsold would be at a record low - about 3,500, when the demand is about 5,000, which means that developers realize the built property practically in a quarter. This is why people say they have no choice. And when you have nothing to choose from, it means that the market price is rising. As I said, I wouldn't call today's situation a bubble. This is a natural indicator of the economy", said V. Čijunskytė.
Also, the founder of Profitus added that investors are always a little ahead because they make sure that inflation does not eat up their savings. Of course, investing safely and responsibly. Investing in real estate is long-term, it's not a quick get rich like bitcoin. Therefore, those who are in a hurry do not win, but those who diversify their investment portfolio do. The winners will be those who have a long-term investment strategy, not those looking to get rich quickly.
More about this is in this article.