Afternoon folks, I have been doin a bit of independent research recently, and I was wondering does anybody have any experience of buying property in Lithuania. Any information or experiences are welcomed. Ken.

Hi Ken, I'm buying in Vilnius in the Pilaites development. It's a well positioned about ten minute drive from the center. £55,000 for a black finish 50m2 one bed with parking, completion in 12 months. Very early days for me as have only just reserved but quite optimistic with the Knight Frank forecasts and the rental prospects for the area. Cheers, Andy

I have also been doin my research on this development also, I have all the details and I was seeking out independent research to arrive at my decision. Are u planning a trip over to Lithuania in the near future? What block have u decided to go with, and what was ur basis for deciding which flat to choose. My research points to the 1-2 bedroom mid level appartments being the most appealing.

Hi Ken, I'd agree with your research. I choose a 'value' flat! It appeared that the developer had/has a slightly odd pricing strategy, throwing in an underground car parking space in a bit of an ad-hoc manner. My 5th 50m2 flat with space was the same price as (no a little cheaper in fact) than a 2nd floor one of the same size and in same building. The flat layout I'm told appeals locally but isn't what we'd normally choose...it's across the building so you have large windows into the lounge one end and the bedroom the other...the kitchen and bathroom are in between. Often you will find two couples sharing such one bedroom flats so I guess you can see the idea...a bit of space between if one lot are up late or something. I am intending to visit but have no date as yet. Cheers, Andy

The 2nd floor one of similar price had no underground car parking space...these spaces had a notional price attached to them by the developer of £6 - 7,000...although not sure if any are being sold 'separately' so to speak. Important for resale in any case and will help with letting potential.

I have just got back from a 5 day scouting trip and was largely disappointed. I ignored Pilates very quickly as I felt it was the worst of the new developments and my shortish time frame. For me there were 3 main problems. Firstly it is just to far out from the city. Secondly it is already an existing suburb known for soviet run down housing. There is zero social status about leaving in that area. The locals are very concerned about status. As a whole they do not want to pay a fortune and get no social uplift. I spent a lot of time talking to locals not property agents. But the biggest downside is that this whole area is classified as economic housing zone. That whole dead land for the half mile going back into town will be built on for the next 5 - 8 years. When you come to sell you will have to price between soviet blocks and one of the hundreds of brand new flats surrounding you flat. What also worries me that we are being sold on basis of capital growth. I just cannot see 40% growth in the next 3 years in this area. The average wage in Vilnuis is now £240 per month. Your rent is going to be tiny, will not cover the mortgage by a long way. I still see one off developments as my way forward, not the social economic zones such as pilates and gabojes.

surely if the whole land behind the development is being built on for the next 5 to 8 years is a good sign? normally this increases the price of property as it results in regeneration of the area? I have travlled to lithunia several times in the past year and I would say prices in the suburbs of the city centre will rise considerably as the trend of appreciated property prices trickles through to the suburbs...also note; although property prices have stabalised in vilnius for the time being, I would only predict another jerk in growth leading up to 2009 as vilnius becomes the 'european city of culture', followed by the 'basketball tournaments' in 2010 or 2011. My advice would be to buy a house in the suburbs if you want 40% returns within 12-18 months. The housing market has just started to take off in vilnius. Get in an get out. For apartments hold for around three years, however there will be a need of some cashinput as there is 70% chance that your rent will not cover the mortgage. I would say expect yields of 4-5% on the safe side and if your luck and get 6-7% then your on too a winner!! Tan

Of the out of town developments i much preferred the hanner development, but these are more exoensive at about 300k litas inc parking on a grey finish. This is 51.4 m2 plus small balcony inc parking. So with finishing you will be around 325k mark which is £64k. This will be ready in about 10 -12 months. The development is planned with 12 blocks. This is on the north side of the city ans will be near the new tram line. If the city centre apartment block I am waiting for release cira 7k per m2 I will buy a unit at bajoru kalvos. When I was in the developers office there were a lot of locals enquiring. This is not being sold to the overseas buyers in the same way as Pilitae. It is also a brand new resedentail area so not associated with old style housing.

Would you be able to share any information on the city centre appartment block. Is it strictly nationals only or can I as a foreigner possibly purchase one of these appartments?

Hi Ken I am still waiting for more details. It is in Snipiskes. Anyone will be able to buy it. I will provide more details once i get the info which is due for release this month. That is all the seller would tell me.