Real estate (RE) market data for the first half of 2024 shows that EIKA remains the leader in new construction apartment sales. Tomas Žiaugra, Director of the Development Department at EIKA Development, believes that one of the reasons for this is that in a more complex situation, it is even more important for buyers to choose reliable developers who will not only ensure high quality, but also provide a guarantee.
Apartment sales are growing
According to data from the first half of 2024, EIKA sold 160 new apartments in Vilnius, Hanner – 123, and Omberg – 105.
EIKA’s market share was 12 percent, compared to 6 percent in the same period a year ago.
“EIKA” is also clearly leading in terms of supply: at the end of the first half of the year, it offered 562 new apartments in Vilnius, “Hanner” – 283, “Anreka” – 266, “Realco” – 259.
Comparing 2024 and 2023, during the first six months of this year, 10 percent more apartments (1,348) were sold in Vilnius than last year (1,220). The most popular districts at the moment are Naujamiestis, Lazdynai, Viršuliškės, Pilaitė, and Šiaurės miestelis.
I prefer finished apartments.
It is noticeable that the supply of new apartments is currently increasing faster than the demand. The largest supply is of mid-range apartments, and buyers can choose from an increased supply of completed and under-construction apartments.
However, buyers’ behavior is changing: in 2024, more people are buying apartments that are being completed or completed, and they are much less interested in unbuilt apartments. For comparison, if in the second quarter of 2024, 333 completed or completed apartments were sold in Vilnius, in the same period a year ago – only 255. 308 apartments under construction were sold in the second quarter of this year, and in the same period last year – 381.
The class of apartments that buyers are looking for is also changing – in the first half of 2024, economy-class housing was sold by almost 40 percent more than in the same period last year, while in the middle class prices are adjusting slightly, and promotional offers are increasing due to the growing supply, but with housing prices in the prestigious class growing, assessing the overall market situation gives the impression that prices are almost unchanged, that is, in the second quarter of 2024 compared to the first, they grew by 1.8 percent.
Developers show optimism
Tomas Žiaugra, Director of the Development Department at EIKA Development, notes that developers, in turn, are also surprising with their activity and are trying to inject more optimism into the market: “While only 10 percent more buyers have returned to the market so far in 2024, developers have offered as many as 63 percent more apartments to the market than in the first half of last year. Such behavior by developers brings more stability to the market, increases competition, and reduces possible price spikes in the near future.”
In his opinion, 2024 will continue to be the year of buyers. “Despite the interest rate cuts that have begun, buyers have a much wider range of options than in the previous few years. Controlled inflation and projected continued wage increases will directly increase housing affordability, and the biggest winners will be those buyers who do not create unreasonable expectations and make decisions in a timely manner,” he says.