LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Mantas Lideika, WALLESS
WALLESS Upės str. 23 08128 Vilnius Lithuania Tel: +370 611 048 64 Email: lithuania@walless.com Web: www.walless.com
1. General 1.1 Main Sources of Law
1.2 Main Market Trends and Deals In 2023, the rising inflation and increases in inter - est rates as well as the war in Ukraine had an obvious impact on the Lithuanian economy and the real estate market. The largest real estate development projects continued but, due to the uncertainty caused by the global pandemic, some investors were quite hesitant to initiate new major residential and commercial devel - opment projects. The development of indus - trial and logistics objects continues, with new building developments underway, especially in hi-tech industries. According to experts, the most sought-after new projects in 2023 were commercial proper - ties. Market conditions demanded sustainable, modern buildings, so developers focused the majority of their resources on income-produc - ing, long-term projects that would generate foot traffic. Partly because of this trend, some smaller residential projects were sold off or at least postponed. However, 2024 is expected to be an exceptional year due to the planned abun - dance of prestigious housing options already in the pipeline. On the other hand, if interest rates reach a critical tipping point, we may also see an increase in more affordable housing projects.
Lithuania is a civil law country with a strict hier - archy of laws, starting with the Constitution and laws, followed by by-laws and ordinances. The Civil Code of the Republic of Lithuania is the main source of real estate law. It regulates separate sale and purchase, lease and construc - tion contracting agreements, and also contains general regulations on ownership, restrictions, obligations and contracts. The Law on Construction, the Law on Spatial Planning and the Law on Municipal Infrastruc - ture Development are also significant when it comes to real estate development. There are also numerous construction-related technical regula - tions approved by the Ministry of Environment, and other by-laws approved by the government and other ministries, which set frequently chang - ing imperative rules. Therefore, it is essential to seek advice from a local lawyer when targeting a newly constructed property or a property with development opportunities.
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