Over the past three years, the price of prestigious housing in Vilnius has almost doubled, but this does not scare buyers. In the third quarter of this year capitalfor sale 78 housing classified as prestigious, which is the highest number in almost three years.
The entire real estate market in Vilnius, assessed by location and investments in project implementation, is divided by developers into three classes: economic – bedroom districts of Vilnius, average – strategically better locations closer to the center, and prestigious – the central part of the capital, the Old Town.
Economy-class housing is found in districts such as Pilaitė, Lazdynėliai or Pašilaičiai, middle-class housing is found in Baltupiai, Žirmūnai, Šnipiškės, Antakalnys, Markučiai, Naujamiestis and part of the Old Town, while prestigious-class housing is found in only four areas of the capital: Užupis, the part of Naujamiestis near the Old Town, Žvėrynes and the Old Town.
Housing prices in Vilnius have increased in all classes over the past three years. Currently, the average price in the economy class is around 2,760 euros per sq m, middle-class housing ranges between 3,180 and 4,240 euros per sq m, and in the prestigious class – 6,300 euros per sq m.
“Over the last couple of years, we have recorded the largest price jump in the prestigious segment. For comparison, at the beginning of 2021 the average price per square meter was 3,190 euros, and now it is 6,300 euros. In this segment, the price ranges from 5,500 to 7,300 euros per sq m, but can even reach up to 14 thousand per sq m. The situation has become exceptional because in central areas of the city the time for project coordination has significantly increased, the aspect of cultural heritage is assessed more strictly, and it often takes longer to coordinate solutions with neighbors,” reveals Tomas Žiaugra, Director of the Development Department at EIKA Development.
Despite the increased price, real estate sales statistics show that buyers are not afraid of this, as there is a very high demand for luxury housing while there was a supply deficit in the market. In the third quarter of this year, 78 prestigious class housing units were sold in Vilnius. This is the highest number in almost three years, since the last quarter of 2021, when 91 apartments were sold.
The rapidly growing sales are also greatly influenced by the recovered supply. Real estate developers understand the current demand, which is why in the second quarter of this year they offered as many as 203 new prestigious-class apartments. The last time such a high supply was recorded was three years ago, when at the beginning of 2021 buyers could choose from 220 new apartments.
“Not only is the supply of new apartments growing in the prestigious class, but also the overall supply. In the second quarter of this year, as many as 432 apartments were offered on the market, while at the same time a year ago we had only 175. This is a 2.5-fold increase and the highest supply since the beginning of 2021,” emphasizes T. Žiaugra.
A representative of EIKA Development, which is currently developing two prestigious projects – Užupio Personos and Senamiesčio Sodai – reveals that they are receiving extremely high interest from investors who see the high potential and high long-term returns of the housing.
“The future success of a project is often indicated by the early attention of investors. They are the ones who usually become our first clients, because they want to be the first to choose the best apartments, especially if the project is in a central location. We also have such a situation in the “Senamiesčio sodai” project, where investors who see value are currently dominating among buyers,” explains T. Žiaugra.
“It is clear that the demand in the prestigious segment is truly significant, so we are pleased to be able to offer more and more choices to both investors and private buyers, who dominate our Užupis project. Seeing the price growth trends, it is easy to predict that these homes will become an excellent investment for both in the future,” adds the real estate expert.
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