This post was automatically translated into English
Every year, the question arises – will real estate become more expensive or cheaper in the new year? It is predicted that in 2015 the price of newly built apartments may change: increase due to the introduction of the euro, or decrease due to the unstable geopolitical situation and a significantly increased housing supply in Vilnius.
Every year the question arises – will real estate become more expensive or cheaper in the new year? It is predicted that in 2015 the price of new apartments may change: increase due to the introduction of the euro, and decrease due to the unstable geopolitical situation and a significantly increased housing supply in Vilnius. However, experts from the real estate development company “Eika” believe that the change in the price of new apartments will be insignificant.
“One of the main reasons why prices will adjust slightly in 2015 is the EU requirement to build energy class A houses from 2016. This requirement should compensate for a possible drop in prices due to increased supply. This is the last year when the country will be allowed to design class B apartment buildings,” says Martynas Žibūda, Development Director of Eika.
According to him, this year will be very active for housing designers. Some developers will want to have time to design class B houses, which they will be able to start building any year after the introduction of stricter EU requirements. If they do not hurry to do this by the end of 2015, they will later have to design and build apartment buildings of no lower than class A.
“From the beginning of 2016, stricter requirements will increase construction costs by up to 15 percent. The majority of investments in the construction of a class A apartment building go to installing a ventilation system, an additional insulation layer, and ensuring greater tightness of the building. Although an apartment in a class A building will be more economical and residents will receive lower heating bills, the price of such an apartment will be higher,” says the real estate expert.
According to M. Žibūda, the price of one square meter in class A houses can already be from 90 to 230 euros (from 300 to 800 LTL) higher than in class B apartment buildings. “Currently, for a new two-room apartment in a class A apartment building, a buyer can pay from 4.5 to 11.5 thousand euros more than when purchasing a similar apartment in a lower energy class house,” says the representative of “Eika”.
At the end of last year, 3,600 new apartments were offered to buyers in Vilnius, and the number is expected to increase at the beginning of this year.
“Due to the growth in the supply of apartments, apartment prices may decrease slightly, although there is little room for price adjustments. Naturally, in a year, class A apartments will become more expensive due to EU requirements, which means that the price of lower-class apartments may also increase. It can already be said that not all consumers will be willing to buy more energy-efficient, but up to 15 percent more expensive housing after 2016. Most will look for cheaper options,” says the development director of Eika.
About the Eika group of companies
Founded in 1992, 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.
More information:
Vitalija Roče
Marketing and Communications Manager
Phone: +370 5 2553 324
Fax: +370 5 2514 256
Email: [email protected]
old.eika.lt