Sales of new apartments in Vilnius surpass record 2014

In Vilnius, about 900 new construction apartment transactions were concluded in the third quarter of this year, which is 12% less than in the second quarter of this year, but as much as 47% more than in the same period last year. The most popular new construction apartments in July-September were in Naujamiestis (13%), Šnipiškės (11%), Pilaitė (11%) and Pašilaičiai (10%).

In the third quarter of 2015, the majority of new apartment transactions in Vilnius – 46% – were in the economy class. Slightly less, 36%, were sold in the middle class,  and 18% in the luxury housing segment. Although luxury housing has the smallest market share, buyer activity in this segment was record-breaking. According to the calculations of the company “Eika”, the number of luxury apartments sold in the third quarter of 2015 was four times more than in the same period last year – 160 apartments.

“Real estate developers have started sales in twelve new projects over the past three months. The novelty effect had a significant impact on buyers’ choices and sales.  The most attractive mid-range and prestigious class apartments were sold as soon as the start of sales was announced. Economy class sales were slightly boosted by the Bank of Lithuania’s lending restrictions that will come into effect on November 1, so buyers who would be affected by the restrictions rushed to choose housing earlier. For these reasons, buyer activity is keeping pace with the significantly growing supply in the market,” says Tomas Žiaugra, development project manager at Eika.

Since the beginning of the year, the average price of new construction apartments in Vilnius has increased by 3.3% to 1,635 euros per square meter, mainly due to price adjustments for economy and prestige class apartments. The price of economy class apartments in Vilnius has increased by 2.8% over the three quarters of this year and currently stands at 1,305 euros per square meter. The price of mid-range apartments has remained unchanged since the beginning of the year at 1,690 euros per square meter, while the price of luxury housing has decreased by 4.5% to 2,480 euros per square meter.

In the third quarter of 2015, the market was supplemented by 1,000 new apartments, although the total supply in Vilnius increased by only 3% to 4,200 apartments. Buyers looking for economy-class housing can choose from 1,680 apartments. The supply in the middle segment is larger and reaches 2,000 apartments. During the quarter, the options for luxury housing increased the most, so buyers can choose from 520 apartments. The map of Vilnius’ supply has also changed since the beginning of this year. From Baltupiai, the largest selection of apartments moved to Naujamiestis (17%), with Šnipiškės (15%) and Baltupiai (10%) in second and third place.

According to the development project manager of Eika, the market should be supplemented by about 700 new apartments by the end of the year. “The last quarter of the year is unlikely to bring any surprises and sales will remain similar to the previous three months, therefore, considering the new supply, buyers’ options will remain record-breaking. By the end of the year, there should still be over 4,000 vacant apartments in Vilnius. We predict that sales of new apartments in Vilnius in 2015 will be record-breaking – in the last quarter we will surpass the threshold of 3,000 new apartment transactions and exceed the record year of 2014,” predicts the representative of Eika.

Founded in 1992, EIKA is one of the largest real estate development and construction groups in Lithuania, successfully developing residential, commercial, public and other building projects, creating a new quality of life and work. The company has already built more than 3,000 apartments and 270 thousand square meters of buildings. Eika has been awarded many times as the best real estate developer in Lithuania, and the company’s projects “Santariškių namai” and “Eikos namai Pilaitė” have also become the best in Lithuania.