As the Lithuanian real estate market stabilizes, real estate loses its attractiveness.
However, investment in real estate remains popular: according to a research, conducted by Spinter tyrimai at the request of InReal, today about 68% (last year - 80%) Lithuanians think that real estate is the best investment of free funds.
„Real estate remains a safe investment despite the recent price hike. In the past year real estate market price has reached its peak, which is why people are looking into the prospects of investment in real estate", says M. Šimkus.
According to him, the return on real estate investment is calculated as follows: the income received from rent added property value growth. Although the market is quite stable, value growth with general investment profitability have decreased and will not be as big as they were last year, but investment in real estate is still one of the safest investments.
According to InReal research data, over the year investment in shares and bonds has rapidly increased. About 16% of Lithuanians would choose this type of investment although last year the figure was around 12%.
"Investment in shares, bonds and investment funds are chosen because they allow to invest small amounts, whereas real estate investment requires substantial capital. What is more, investment in securities allows to diversify the risk-to choose several investment tools. Evaluating investment culture it can be said that people become increasingly aware of investment, get rid of misconceptions, and we can see a positive tendency in investment- strategy formation - selecting several directions," - says Dalius Kaziūnas, Director of the Finasta financial brokerage company.
Research shows that 36% of Lithuanians would choose their own business as an investment type. Last year the indicator was 43%. In the past year the number of people intending to invest in life insurance has fallen from 28% to 16%; the attractiveness of bank deposits has come down from 14% to 10%.
The research, which was conducted at the beginning of this year in the main Lithuanian cities, shows that about 5% of the respondents insist that they do not want to invest their money. The figure has not changed since last year.
According to the research, nowadays the main reason for buying real estate is personal needs, not investment. 39% of the respondents say that the main considerations when buying real estate are cheaper maintenance (last year - 36%) and 37% - new building (last year - 39%).
Over the year apartment-owner satisfaction has increased: last year 50% of the respondents were displeased, this year the figure being down by 10%.
About InReal
InReal is one of the largest real estate companies in Lithuania. It belongs to the Invalda group of enterprises. The company helps to buy, sell and rent real estate, provides property valuation services.
InReal headquarters are in Vilnius. There are also offices in Kaunas, Klaipėda, Riga (Latvia) and Kiev (Ukraine).
For more information contact:
Mindaugas Šimkus, InReal Head of Brokerage
Phone: (8 5) 275 5009, (8 611) 25 264.
Inga Smirnovienė, InReal Head of Marketing and Communications
Phone: (8 5) 275 3856, (8 614) 53 880.
E-mail inga.smirnoviene@inreal.lt