Apartment sales are growing in Kaunas and Klaipėda, prices are decreasing

According to the calculations of Eika market analyst Tomas Žiaugra, about 60 new apartments were purchased directly from real estate developers in Klaipėda during the third quarter of 2012, similar to the previous quarters of this year. In Kaunas, sales of new apartments in the third quarter doubled compared to the beginning of this year. In Kaunas, 45 new construction apartments were sold.

As sales grew in both Kaunas and Klaipėda, prices of new-build apartments decreased. In the third quarter, prices in both cities decreased by 2%. Over the year, the average price of new-build apartments in Klaipėda decreased by 3% to LTL 4,190 per square meter. “There have been no significant changes in the price of new apartments in the market since the end of 2010. Developers of new projects are trying to compete not on housing prices, but by offering buyers more compact and functionally designed apartments, which are lacking in Klaipėda,” says the market analyst at Eika. In Kaunas, the average price of a new-build apartment per square meter has decreased the most among major Lithuanian cities over the year – by almost 5% and currently reaches LTL 3,800 per square meter. “The prices of new apartments in Kaunas were reduced in five projects, where up to 10 unsold apartments remain, and sales have been sluggish recently,” says Tomas Žiaugra.

Considering the ratio of housing sales transactions to the number of residents, the most active home buyers are Klaipėda residents. In Klaipėda, there were 3.2 sales per thousand residents in the third quarter of this year. In Vilnius, an average of 3 apartments were sold per thousand residents during the quarter, and in Kaunas – 2.3.

According to preliminary data from the Registers Centre, in the third quarter of 2012, the most popular new-build apartments in Klaipėda were 50–65 sq m. m. in area, which accounted for as much as 70% of sales transactions. The value of as much as 69% of new-build apartment transactions fluctuated between 200 and 300 thousand litas. Unlike in Klaipėda, in Kaunas, traditionally the most popular new housing units are over 100 sq m. m., which accounted for half of new apartment sales. According to the Registers Centre, the most popular in Kaunas and Klaipėda are old-build 1-room apartments with an area of ​​up to 30 square meters.

According to the calculations of the Eika market analyst, in Klaipėda, the supply of new apartments in completed and under construction multi-apartment buildings increased by 5% in the last quarter and currently amounts to about 840 apartments. The supply was supplemented by about 70 new apartments in two projects. In Kaunas, the supply of new construction apartments increased by as much as 20% in the third quarter of this year and currently amounts to about 380 apartments.

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 standards ISO 9001:2000, Environmental standards ISO 14001:2004 and Occupational Health and Safety standard OHSAS18001:2007