This post was automatically translated into English
About 500 new apartments were sold or reserved in Vilnius in the first half of this year. Compared to the first half of 2008, when, according to the Center of Registers, 1,749 new apartments were sold, sales decreased by about 70 percent, although stagnation in the housing market had already begun at that time.
During the first half of this year, about 500 new apartments were sold or reserved in Vilnius. Compared to the first half of 2008, when, according to the Center of Registers, 1,749 were sold new apartments, sales decreased by about 70 percent, although stagnation in the housing market had already begun by then.
This year, more than 60% of sales are in economy class apartments. Their average price ranges between 2500-4500Lt per square meter. Over the past six months, prices in this market sector have decreased by about 17%. About 20% of sold apartments are middle-class, with prices ranging between 4500-6500 Lt per square meter and have also decreased by about 17% over the past 6 months. The remaining part, about 20% of sold new apartments, is luxury housing, with prices starting from 6500 Lt per square meter. Although the announced prices in this sector have decreased by about 20%, the actual sales prices during negotiations may be about 10-15%, and sometimes 20% or more, lower.
According to Tomas Žiaugra, a market analyst at UAB “Eika”, real estate developers are currently offering about 2,500 new apartments. “However, the supply of apartments in completed and almost completed projects is smaller – about 2,200, and such apartments are sold the most – over 90% of all new apartments sold on the market. The number of apartments that have been built or are almost built should be enough for 2 years, if sales continue at a similar pace,” predicts T. Žiaugra.
According to him, perhaps the only good news for developers is that sales have not stopped. Over 80 new apartments are purchased directly from developers per month. “The most successful developers sell apartments, who are not afraid to react to price changes in a timely manner and apply discounts. Also, a number of apartments are sold in projects “guarded” by banks, where buyers can receive more favorable credit terms,” the real estate analyst assures.
The situation is more complicated in recently started construction projects. In the past 6 months, only about 30 apartments have been sold or reserved in half-built apartment buildings. “This suggests that the planned or suspended projects, i.e. about 1,400 apartments, will not replenish the market in the near future,” says T. Žiaugra.
Sales of new housing in Vilnius in the first half of 2009:
Apartments sold Offer
Economical 320 1180
Medium 120 670
Prestigious 60 600
TOTAL: 500 2450
Finished and being finished
projects 470 2170
Projects under construction 30 280
Suspended projects 0 1370
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. The group of companies consists of: UAB “Eika” – a leader in the real estate market, valued for its innovation, reliability and responsibility; UAB “Eikos statyba” – a construction company with extensive experience in the construction and renovation of administrative, public, commercial, industrial and residential buildings; UAB “Inžinerinės idėjos” – specialists in the design, installation and maintenance of engineering systems. The quality of the services of the group of companies is ensured by the implemented quality and environmental standards ISO 9001:2000 and ISO 14001:2004.
More information:
Dom Dargis
Development Director
Phone: +370 5 2514 253
Fax: +370 5 2514 256
Email: [email protected]