In 2009, real estate developers sold over 850 new apartments in Vilnius

In 2009, more than 50% of sales were made up of economy-class apartments, the price of which currently ranges from 2,500 to 4,000 litas per square meter. Over the year, prices in this market sector decreased by about 22%, but in the last quarter, an average price increase of 1% was noticeable. About 30% of apartments sold are middle-class, the prices of which range from 4,100 to 5,900 litas per square meter and have decreased by about 20%. The remaining part, about 20% of new apartments sold, belong to luxury housing, the prices of which start from 6,000 litas per square meter. The advertised prices in this sector have shrunk the most – by about 25%. It is worth noting that today’s buyer has become much more cautious, more selective, and more appreciative of quality. This is evidenced by the doubling of sales of prestigious apartments in the last quarter of 2009.

According to Tomas Žiaugra, market analyst at UAB Eika, real estate Developers are currently offering around 2,000 new-build apartments in Vilnius. Around 97% of the supply is new apartments In active projects that are completed or nearing completion, only 3% of apartments for sale are under construction. Since the beginning of the year, the supply of new apartments has decreased by about 22%. “Some apartments have been sold, some projects have been suspended. About 1,600 apartments are currently in suspended or frozen projects, but we do not believe that these projects will be implemented in 2010,” says T. Žiaugra.

The purchase of new apartments did not stop during the difficult times, over 70 apartments are purchased directly from real estate developers per month, and in the last quarter of 2009 the total average price per square meter in the Vilnius primary housing market decreased by only one percent. For comparison, in the first quarter of 2009 the average price per square meter decreased by 12 percent, in the second quarter – by 7 percent, and in the third quarter – by 4 percent.

“The largest, most experienced real estate developers sold apartments most successfully in 2009, inspiring greater confidence among buyers and not afraid to react to fundamental market changes. For example, the five real estate development companies with the highest sales in 2009 accounted for about 48% of the new apartment sales market,” the market analyst calculates.

According to T. Žiaugra, 2009 was a test for many real estate developers – over 10 projects were suspended, some companies went bankrupt. Other real estate developers successfully completed the projects they had started. “Natural selection left only the strongest, most reliable real estate developers on the market, who could offer attractive products to buyers,” says T. Žiaugra.

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.