Professionally managed real estate (RE) project development ultimately yields a significantly higher return on investment. Conversely, mistakes made during the development of a RE project and various unestimated circumstances can lead to a dramatic decrease in the planned investment return or none at all. Martynas Žibūda, CEO of UAB EIKA Development, a real estate project management company with over 30 years of experience, reveals when a RE project manager is needed and what benefits he provides.
“A project manager is needed to represent the client on all issues related to the real estate project. He must essentially identify with him and act solely in his favor,” M. Žibūda summarizes the benefits of a real estate project manager at the very beginning of the conversation.
According to him, in order for the interests of the real estate project manager and the client to coincide, the manager must have the same motivation as the client. Often this is a success fee on the return on investment, which is defined as a share of profit over time. Sometimes, if the project does not include a share of income, it is defined as the cost of the construction object and the terms of project implementation.
Variety of real estate projects
In the past few years alone, EIKA Development specialists have managed or are still managing many well-known and visible real estate projects, such as apartment buildings – “Žvėryno personos”, “Medeinos namai”, “Miško sprintas”, business centers – “FLOW” and “Jasinskio2” in Vilnius, accommodation – SPA and boutique hotel in Palanga “Monist”, reconstruction of the “Eglė” sanatorium in Druskininkai, coliving Solo Society, Hilton Garden Inn hotel, industrial – KIKA Group factory in Kaunas, Mestila oilseed processing and biodiesel plant in Klaipėda.
According to M. Žibūda, the challenges faced by a real estate project manager can be answered using the example of the business center “Jasinskio2” officially opened in Vilnius this year. The investor purchased the plot with a building permit for the construction of a hotel, but the project manager was tasked with converting the project into an apartment hotel – building apartments for rent. But the law firm “Ellex Valiunas” became interested in this project, which wanted to move their new office to this location.
“The client needs a project manager for NT when flexibility and a preliminary forecast of the final result are necessary. We encounter cases when the client has a prepared technical project for the building, wants to start construction, but at the same time wants to change certain functionalities of the building, wants additional improvements and benefits. In such a case, it is inevitable to use a project manager who would adapt the entire process: change the design task, obtain a new construction permit, but at the same time not extend the construction period of the building,” says the head of EIKA Development.
Satisfies interests
The new building permit included significant changes, for example, interior spaces were redesigned and equipped according to the wishes of the major tenant, and instead of one underground floor with an elevator, two floors with access ramps were designed and built for cars, so that cars could enter the garage more conveniently.
“We also represented the client and resolved various issues that arose during construction with residents of neighboring buildings, and provided information to the media. Each real estate project is unique and the issues that arise usually require non-standard solutions and knowledge in various fields – from designers and constructors to the cost forecast of installing the most modern systems in buildings and maintaining them. Using the accumulated experience, our specialists find rational answers and solutions,” says the head of EIKA Development. “The most important role of the manager is to see the whole, understand the causal relationships of different solutions, and reconcile the interests and benefits of all participants in the real estate project: starting with the client, the needs of the city and neighbors, ending with the quality of architecture and the tenants of the premises.”
The goal is to create the expected benefit
“The project manager’s responsibility is to ensure that all project participants create the necessary added value and receive the expected benefits,” says M. Žibūda.
According to him, experience shows that a real estate project manager is necessary in all cases where the final goal or task is not fully formed, and especially in the case of building reconstructions, when it is not clear what will be found in the building during demolition. Also in the early stages of projects, when the building budget is formed, but the real cost of the building becomes clear only after the preparation of the technical design of the building and the tender for contractors. This is an especially common case in state institutions, when a preliminary project budget is determined, which becomes “outdated” during the implementation period, and the difference between expectations and the result is often shocking, because “design to estimate” is not carried out.
“The NT project manager cannot eliminate the risk of construction cost increases for the client or guarantee future income, but must ensure the most effective project management path and the impact of each event on the final project result,” summarizes M. Žibūda, CEO of EIKA Development.
“Invest” magazine, March 2026.