A sudden rise in apartment rents, especially in Vilnius, after the adoption of the euro has no "rational basis", says Danske Bank economist Rokas Grajauskas, adding that he expects rents to go down this year.
© DELFI / Kiril Čachovskij

"Neither people's income, nor demand for housing grew that much," Grajauskas told DELFI, commenting on apartment rent prices that went up by almost 20% last year. Therefore adjustments in the market should bring them down again, he believes.

Average income grew 5% last year and is expected to go up 6% this year, according to Grajauskas. Rents should grow at a similar pace.

"If they [housing rents] grew 20% last year, they should edge down at least 5 to 10%, so that they are back at a normal level," Grajauskas says.

It is forbidden to copy the text of this publication without a written permission from DELFI.

Vasiliauskas calls on MPs to turn to ECB over banking tax

Vitas Vasiliauskas , board chairman of the central Bank of Lithuania , has called on lawmakers to...

Fake or true: your coffee might contain grounded cockroaches

In past months some global media shocked their readers by claiming that grounded coffee might...

Nauseda: state bank shouldn’t be taboo

The existing situation in the Lithuanian banking market makes one to start thinking about the...

Lithuania not considering 'century bond' yet

The Lithuanian Foreign Ministry sees no need for issuing ultra-long debt yet, but might consider...

Cabinet backs retail and bank taxes

The Lithuanian Cabinet on Wednesday backed in principle new taxes on bank assets and retail...