Almost two-thirds of respondents, 63.6 percent, said that the country's real estate market was unlikely to recover earlier than late 2013. By comparison, 58.3 percent of those surveyed half a year ago expected the market to recover in late 2012, the central bank said on Thursday.
"There is more pessimism in banks' assessments, which is caused by the general negative background due to problems in some eurozone countries and to Lithuania's real estate market statistics, which does not provide much ground for optimism, as the housing loan portfolio is still contracting and the number of real property transactions is far from what it was in the boom times," Kristina Grigaitė, senior economist at the central bank, said in a press release.
Some 18.2 percent of banking executives thought that the real estate market stagnation was over. Some 70 percent of those polled expected prices to remain stable this year and three percent said that prices would go down.
Senior executives of seven commercial banks and four foreign bank branches participated in the survey.
2012-04-27 11:02
Banks expect Lithuanian real estate market recovery in late 2013
Lithuania's real estate market is likely to remain stagnant until the end of 2013, according to a survey of senior banking executives carried out for the Bank of Lithuania this month.
Real estate / Irmanto Gelūno / BNS nuotr.
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