Evaluation of Impact of Transition and Economic Crises on Real Estate Market

Latest economic, social and ecological processes are conditioned by globalization and international competition, but some countries cope with intertwined processes of transition economy, too. Abrupt changes in the processes, measured in large sets of indicators, followed by complex structure of interdependencies make the analysis of real estate market very complicated. And the comparatively short intervals of observation make an obstacle for reliable results of analysis. The paper presents theoretical viewpoint of real estate development integrated with empirical analysis. The conceptual model of Lithuanian real estate development in 2000–2009 is constructed. The model reveals the tangible and intangible factors of real estate market. Applying method of multivariate regression analysis some consistent patterns are assessed, which were affected by the amount of bank loans, while a small loan interest rate and rapidly growing GDP have formed higher consumer confidence