In the third quarter of this year, a record number of new apartments were sold in Kaunas after the crisis – 120 new construction apartments per quarter, i.e. 14 percent more than in the second quarter of this year and 18 percent more than in the same period last year. Meanwhile, in Klaipėda, 90 apartments were sold in the last three months, or 7 percent less than in the second quarter of the year and exactly the same as in the same period last year. Kaunas residents have received new projects after a long time and have greater options for choosing new housing, while Klaipėda residents have to choose from the illiquid and unadapted to the needs of buyers balance of new construction apartments in already built apartment buildings.
“Kaunas continues to amaze with the activity of the new housing market. Record sales after the crisis only confirm once again that the need for attractive housing in Kaunas exists and is constantly growing. Customers are increasingly choosing projects closer to the city center, which are just starting to be built, and are forming a luxury housing segment that has not existed in Kaunas before,” – says Martynas Žibūda, Head of Development at Eika. “In addition, after a long time, the Kaunas market has received a significant addition to the new supply – the number of vacant apartments on the market, which has been decreasing since the beginning of 2015, was for the first time added during the quarter by about 170 new apartments in as many as 5 projects. Buyers wishing to purchase a new home in Kaunas can currently choose from approximately 450 apartments,” comments M. Žibūda.
“As we predicted at the beginning of the year, the signs of recovery shown by the Kaunas housing market have not gone unnoticed by real estate developers. Every quarter, more and more new projects are launched in Kaunas or the development of already started settlements is continued,” says M. Žibūda.
In Klaipėda, the situation in the new housing market does not show any changes. According to a real estate specialist, demand has remained stable for the fifth quarter in a row – 85-90 new construction apartments are being sold. Meanwhile, the supply in the port city currently amounts to about 550 vacant apartments. “A large part of the apartments for sale has been on offer since 2008. The stock of illiquid housing is gradually decreasing, but it is still too large for real estate developers to decide to start larger projects in the port city,” says a representative of UAB “Eika”.
“Even the 2 percent decrease in the price per square meter of projects and their remnants on the Klaipėda market in the third quarter does not seem to increase the port city residents’ options for choosing new housing in the near future. The market will continue to be supplemented by small individual apartment building projects, but real estate developers will not dare to start new settlements,” says M. Žibūda.
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 third quarter of 2016, about 1,120 apartments were sold in Kaunas, i.e. only 2 percent more apartments than in the second quarter and 7 percent more than in the same period last year. In the port city, about 870 housing sales transactions were concluded in the third quarter of this year, i.e. 8 percent more than in the second quarter of this year and 14 percent more than in the third quarter of 2015.
The average price per square meter in the new housing market in Kaunas increased by 3 percent in the third quarter of this year and currently stands at 1,080 EUR/sq m. In Klaipėda, the price decreased by 2 percent and currently stands at 1,220 EUR. Price trends in Kaunas and Klaipėda were determined by different factors: In Kaunas, new supply with attractive housing offers supplemented the market at a higher than average price, while in Klaipėda, individual projects are still looking for a selling price that buyers would be willing to pay, which led to a decrease in the overall average sq m.
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.
More information:
Marketing and Communications Manager
Jorūnė Juodžbalytė
Phone: +370 520 45809
jorune.juodzbalyte@eika.lt
old.eika.lt