This post was automatically translated into English
During the first nine months of this year, about 700 apartments were sold directly from real estate developers in the primary new construction housing market of Vilnius.
During the first nine months of this year, about 700 apartments were sold directly from real estate developers in the primary new housing market of Vilnius. The largest share, about 60 percent, of sales is made up of economy-class apartments. “The most successful sellers of apartments are large companies, for whose projects banks provide favorable housing purchase crediting conditions,” says Tomas Žiaugra, an analyst at the EIKA group of companies.
According to the data of the Registers Center, even more new apartments were sold in the first three quarters of this year – about a thousand. “We notice that an increasing share of transactions is being concluded in the secondary new housing market, where apartments taken over from real estate developers for debts are being sold. As banks and creditors take over more and more assets, this share of the market will become even more significant,” says T. Žiaugra.
According to the Registers Centre, compared to the same period in 2008, apartment sales this year have decreased by about 60 percent. Since January 2009, an average of 110 new apartments have been sold in Vilnius per month. Last year, at the same time, about 270 apartments were sold per month. According to a real estate market analyst, although the new housing sales market has slowed down, the number of transactions remains stable, and in recent months there has been a slight increase.
The average price of economy-class apartments, which make up the largest share of sales, ranges from 2,500 to 4,200 litas per square meter. Over the nine months of this year, prices for economy-class housing have decreased by an average of 23 percent. According to T. Žiaugra, this year the decrease in the average price of economy-class apartments was mainly determined by projects in Pašilaičiai and the Perkūnkiemis quarter, where the price does not exceed 3,500 litas per square meter.
Middle class apartments, whose prices range from 4,500 to 6,200 litas per square meter, accounted for about 25 percent of this year’s sales. The price of apartments in this class has decreased by an average of 17 percent over the past nine months. The remaining 15 percent of the market share is accounted for by luxury housing, whose sales prices start at 6,200 litas per square meter. The advertised prices in this class have shrunk by about 24 percent since the beginning of the year.
Real estate developers are currently offering about 2,500 new apartments in Vilnius, of which about 1,800 have been built or are nearing completion. Over the past 9 months, the supply of new apartments has decreased by 16 percent, and the supply of built apartments has decreased by as much as 28 percent. “The supply of attractive apartments is much lower than it was in January. For example, there are almost no two-room apartments left in popular economy-class projects. In the future, the choice of apartments in attractive areas will only decrease – new projects are not being launched on the market, although the need is emerging,” predicts T. Žiaugra.
About the Eika group of companies
Founded in 1992, the company “Eika” is one of the largest real estate development and construction groups in Lithuania. The group of companies consists of: UAB “Eika” – a leader in the real estate market, valued for its innovation, reliability and responsibility; UAB “Eikos statyba” – a construction company with extensive experience in the construction and renovation of administrative, public, commercial, industrial and residential buildings; UAB “Inžinerinės idėjos” – specialists in the design, installation and maintenance of engineering systems. The quality of the services of the group of companies is ensured by the implemented quality and environmental standards ISO 9001:2000 and ISO 14001:2004.
Contact person:
Dom Dargis
Eika Development Director
Phone: +370 5 2514 253
Fax: +370 5 2514 256
Email: [email protected]