Stages of evolution of the real estate market in Lithuania:
The proper development of the Lithuanian real estate market started from 1991 onwards, with the passing of the Apartment Privatization Bill by the Parliament of Lithuania. With the passage of the Bill, the residents of the country were permitted to purchase all apartments owned by the state. In fact since the 1990s, a handful of small industrialists joined hands in organizing this particular market, and very soon dominated it as well.The Lithuanian property sector which started developing gradually since the 1990s, witnessed a hike in the prices of residential real estates. The price of this property increased to at least 5 to 10 times more than the existing $100 for every square meter. After that, there was actually no looking back for this market, as the cost of the residential properties enhanced in a uniform manner, with occasional fluctuations as in 1993.
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As far as the commercial properties in Lithuania are concerned, the prices of newly built offices in the Vilnius downtown area vary from $1000-$1100 every square meter. The repaired, old apartments are available at $900 per square meter, while all those in more or less decaying condition are priced as low as $500-$600 every square meter. However, 3 different price ranges for commercial properties, $350-500, $700-$750 and $500-$650 exist in important suburban areas in Lithuania.
Both the residential and commercial real estate in Lithuania are given out on lease for a tenure of 3 years, though the extension or reduction in the lease period is always negotiable, with due consent from both the parties. Termination of the property lease periods requires a prior notice of 30 days.
In fact, the system of giving out residences on rent in Lithuania rose from the demands generated by the requirement of such spaces by foreigners visiting the country.
