Features of price bubble in real estate market in Lithuania

ENReal estate is a safe investment, commodity, asset, workplace and resort, the means of business and livelihood source. Real estate market is very important to whole state economy: the increase in real estate market and construction sector influences economic growth a lot. However, during the last few years, since 2003 prices of real estate in Lithuania have increased rapidly and the experts of real estate market started talking about price bubble. The objective of this article is to evaluate the situation of residential sector in real estate market, to analyze features that indicate the bubble and to point out what conditions the situation when price bubble appears. The object of this article is the price bubble in real estate market. Tasks of the article: to analyze the features which indicate the formation of price bubble in real estate market.; to point out the reasons that conditioned the situation when price bubble appeared. The methods of research are the following: gathering material and processing of data. Having analyzed the data given by real estate companies “Ober-haus”, “In real” and “Resolution” the following conclusion may be made: the increase of prices which began in 2003 does not subside. Though in 2006 the increase of prices was not very rapid but we cannot say that the prices stabilized completely.