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In 2014, for the first time since the crisis, more new apartments were sold in Kaunas than in Klaipėda. In the temporary capital, about 330 new apartments were sold last year, which is 57% more than in 2013, and in the port city – 300 new apartments, which is 18% more than in 2013.
In 2014, for the first time since the crisis, more new apartments were sold in Kaunas than in Klaipėda. Last year, about 330 new apartments were sold in the temporary capital, which is as much as 57% more than in 2013, and in the port city – 300 new apartments, which is 18% more than in 2013. According to preliminary data from the Center of Registers, about 4100 apartments were sold in Kaunas last year, 18% more than in 2013, and about 2900 housing transactions were concluded in the port city, 6% more than in the previous year.
In 2014, the activity of the primary housing market in Klaipėda was very similar to that of the capital, i.e. record new housing sales at the beginning of the year and the subsiding euro euphoria in the second half of the year, when fewer new apartments were sold in the last quarter of the year than in 2012 and 2013. Last year, the housing market trends in Kaunas were slightly different. While the first two quarters of 2014 were the most active in Vilnius and Klaipėda, the primary market in Kaunas was active throughout the year – sales increased by as much as 57% compared to 2013. In Vilnius and Klaipėda, the growth in housing sales was not as significant, 24% and 18%, respectively.
In Kaunas, spacious, newly built apartments of over 100 square meters have remained the most popular for several years, accounting for a third of all sales last year. Meanwhile, in Klaipėda, a similar share of market sales is for functionally planned 60-65 sq. meters, new three-room apartments. In both large cities, small, up to 30 square meters, one-room apartments are the most popular in old-built houses, accounting for about 18% of all sales transactions.
The price per square meter of new apartments in Kaunas has not changed since the beginning of 2012 and currently amounts to about 1,100 euros (3,800 LTL) per sq. meter. Meanwhile, in Klaipėda, the price decreased by 2% in 2014 and amounts to about 1,254 euros (4,330 LTL) per square meter. “The price of new apartments in Klaipėda has decreased slightly due to new projects that have supplemented the housing supply,” says Tomas Žiaugra, development project manager at Eika. “Although the average price in Kaunas has not changed over the year, in some projects, in order to stimulate sales, pricing was significantly adjusted. Real estate developers reduced the price by up to 10%, i.e. about 90 euros (310 Lt) per sq. meter, and in successful projects where the most apartments were sold in Kaunas, prices increased by as much as 15% or up to 170 euros (590 Lt) per sq. meter.”
According to the data of the company “Eika”, in Klaipėda, the supply of new apartments decreased by about 10% in 2014 and currently amounts to 660 new construction apartments. During the year, the Klaipėda market was supplemented by as many as nine new projects, in which about 210 apartments were offered to buyers. In Kaunas, the situation is the opposite – the supply of new housing increased by as much as 48% and currently amounts to as many as 710 new construction apartments. During the year, the Kaunas market was supplemented by as many as eleven projects, offering about 450 new apartments to customers. “In 2014, the Kaunas housing supply was supplemented by newcomers to the real estate market, which have already started or will start their first projects this year. These companies invested in projects that were suspended during the crisis. Often, developers who have purchased a project that has been standing for many years at a lower price have the opportunity to sell apartments at a lower than average market price, therefore these projects are in greater demand among customers,” – the representative of “Eika” names the market trends.
In 2015, major changes in the primary housing market of Kaunas and Klaipėda are unlikely. The real estate specialist does not predict an increase in the prices of new apartments in either the port city or the temporary capital. In Kaunas, similarly to Klaipėda, about 250-300 new apartments are likely to be sold per year. “If we expect a record supply in Vilnius this year, the number of sales in 2014 did not stimulate the growth of supply in Kaunas and Klaipėda. Real estate developers are investing sluggishly in these cities, therefore there should be no boom in new projects in 2015, except for individual new or renovated projects that were suspended during the crisis, or further development of projects already under development,” says 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.
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More information:
Tomas Žiaugra
Project Manager
Phone: +370 5 2045 810
Fax: +370 5 2514 256
Email: [email protected]