The expectations of commercial banks about real estate prices have changed essentially over a year - there have remained almost no banks projecting housing price increases, while last spring such banks represented more than a half, said the Bank of Lithuania.
© DELFI / Kiril Čachovskij

"Last spring the euro adoption-related real estate price increases did not live up to the expectations; currently price projections are much more moderate. The absolute majority of the surveyed banks project price stability," says Darius Kulikauskas, Head of the Macroprudential Division of the Financial Stability Department at the Bank of Lithuania.

According to the survey data, over 80 percent of banks expect that next year real estate prices will remain unchanged. For comparison, a year ago, two-thirds of those surveyed projected price increases, while stable prices were expected by a mere 30 percent of those surveyed.

Banks' perception of the outlook for the housing market and commercial property market varies. 9 percent of respondents reported that the prices of old-construction buildings would decrease by no more than a tenth, while 18 percent of the surveyed banks expected a fall in the prices of new-construction buildings over the next year. Just one in eleven surveyed banks expected growth in commercial property prices of up to 10 percent.

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

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 (1)

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...