This post was automatically translated into English
In the second quarter of this year, 110 new apartments were sold in Kaunas, i.e. 29 percent more than the average of the last two years, when 85 apartments were sold per quarter. Meanwhile, in Klaipėda, 90 apartments were sold in the last three months, or 32 percent more than the average of the last two years, when 68 apartments were sold per quarter. Greater buyer activity in Kaunas is limited by the drastically decreasing supply of new apartments, and in Klaipėda – by the illiquid and unadapted balance of new apartments.
In the second quarter of this year, 110 new apartments were sold in Kaunas, which is 29 percent more than the average of the last two years, when 85 apartments were sold per quarter. Meanwhile, in Klaipėda, 90 apartments were sold in the last three months, or 32 percent more than the average of the last two years, when 68 apartments were sold per quarter. Greater buyer activity in Kaunas is limited by the drastically decreasing supply of new apartments, while in Klaipėda – by the illiquid and unadapted balance of new apartments.
“The new housing market in Kaunas has been active for the second quarter in a row, with over 100 new apartments being sold. This is significantly more than the average of the last two years, when sales reached 85 apartments per quarter,” says Tomas Žiaugra, Development Project Manager at Eika. “On the other hand, the supply of new apartments in Kaunas has been drastically decreasing for the sixth quarter in a row. Buyers who want to purchase a new home in Kaunas currently have a record low number of options – they can choose from just 410 apartments. This is the lowest number of new apartments for sale since the third quarter of 2013,” comments T. Žiaugra.
The rapidly decreasing supply of apartments in Kaunas should encourage real estate developers to take on new, larger projects or increase the volume of already launched projects – extremely favorable conditions have been created in the market for this. “We predict that in the second half of 2016, real estate developers in Kaunas will be much more active than at the beginning of the year, especially those who started new projects very cautiously, with just a few dozen apartments,” says T. Žiaugra.
In Klaipėda, there is also a noticeable increase in buyers. According to a real estate specialist, demand has been soaring for the third quarter in a row – 90 apartments have been sold in the last 3 months, which is an average of 22 apartments more than the average of the last 2 quarters. Meanwhile, the supply in the port city currently amounts to 640 vacant apartments, and the number of apartments on the market has not changed for more than two years. “A large part of the apartments for sale has been on offer since 2008, adapted to the needs of buyers of that period, therefore, in today’s market conditions, the aforementioned apartments are not liquid. In ongoing projects, the supply is constantly supplemented, but only individual projects that offer housing that meets their expectations attract greater interest from buyers,” says a representative of UAB “Eika”.
“In Klaipėda, the new housing market could be shaken up by new market participants who can offer buyers small, compact housing in popular areas of the port city. However, the number of vacant apartments on the market, which will sooner or later have to find their market price, does not give real estate developers a reason to take risks or expect higher prices for new apartments in the port city,” says T. Žiaugra.
In the secondary housing market, both in Kaunas and Klaipėda, growth in the total number of apartments sold is recorded. According to preliminary data from the Center of Registers, in the second quarter of 2016, about 1,100 apartments were sold in Kaunas, i.e. 11 percent more apartments than in the first quarter and 17 percent more than in the same period last year. In the port city, about 800 housing sales transactions were concluded in the second quarter of this year, i.e. 17 percent more than in the first quarter of this year and 11 percent more than in the second quarter of 2015.
The average price per square meter in the new housing market fell in both Kaunas and Klaipėda during the second quarter of this year. In Kaunas, the price decreased by 4 percent and currently stands at 1,050 euros, in Klaipėda the price of new apartments currently stands at about 1,250 euros per square meter, i.e. 3 percent less than in the first quarter of this year. In both Kaunas and Klaipėda, the price change was similar, but it was determined by different factors: in Kaunas, the most expensive apartments were bought out, therefore the total price per square meter of the remaining apartments decreased, while in Klaipėda new apartments were offered to the market at a price lower than the market average.
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, successfully developing residential, commercial, public and other purpose building projects, creating a new quality of life and work. The company has already built more than 3,750 apartments and 320 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.
Other reviews:
More information:
Marketing and Communications Manager
Raimonda Janusonytė
Phone: +370 520 45809