Over 1,000 apartments sold in Vilnius in the first quarter of 2010

In the first quarter of 2010, almost 70 percent of new housing sales were in the economy class apartments, whose price currently ranges from 2700 to 4300 litas per square meter. During the first three months of the year, prices in this market sector decreased by about 2 percent, but price correction took place only in individual projects. About 25 percent of sales were for mid-range apartments,  which price ranges from 4300 to 6100 litas per square meter. The prices of mid-range apartments increased by about 6 percent on average during the first quarter of this year, as the cheapest apartments in this segment have already been sold. The remaining, barely 5 percent. of new apartments sold, are for luxury housing, whose prices start at 6100 litas per square meter. Prices in this sector remained unchanged during the first quarter.

In other major cities, housing purchases remained passive. According to preliminary data from the Center of Registers, over 440 transactions were concluded in Kaunas during the first quarter, of which only a few percent were for new construction housing. In Klaipėda, 389 apartments were sold, of which 9 percent were new construction.

According to Tomas Žiaugra, a market analyst at UAB Eika, real estate developers in Vilnius are currently offering about 1,700 new apartments. Another 200 apartments should be added to the market by the end of the summer. Since the beginning of the year, the supply of new apartments in completed and under-construction projects has decreased by about 16 percent, and compared to the same period last year, the supply has decreased by 23 percent. The supply of new, attractive housing continues to decrease, and interest in such apartments increased in the first quarter of this year.

“Today, buyers choose housing only in completed construction projects, because that is the only way they can evaluate the final product. It is much more difficult for builders of unfinished projects to convince buyers to purchase apartments,” says T. Žiaugra.

“The largest, most experienced real estate developers sold apartments the most successfully. A well-known company name and experience inspires greater confidence in buyers. For example, the five real estate development companies that recorded the largest sales accounted for about 60 percent of the new apartment sales market,” the market analyst calculates.

According to T. Žiaugra, 2010 is a year of opportunities for the remaining real estate developers – those who will be able to quickly introduce an attractive product to the market will win. “Today’s real estate market is very sensitive, so real estate developers have to invest significantly more in improving the design process and improving quality. Of course, this is only beneficial for those looking for housing,” 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.