In 2010, real estate developers in Vilnius sold 46 percent more new apartments

In 2010, about 100 apartments were purchased directly from real estate developers per month. Almost 65% of new apartment sales were economy class apartments, the price of which currently ranges from 2,700 to 4,300 litas per square meter. Over the year, prices in this market sector increased by about 7%. Price changes were mainly determined by the decreasing supply of attractive apartments in this market segment. About 28% of apartments sold were middle class, the prices of which range from 4,300 to 6,000 litas per square meter. Prices in this class decreased by about 3%. The remaining, just 7% of new apartment sales, were luxury housing, the prices of which start at 6,000 litas per square meter. The advertised prices in this sector did not change during 2010. The highest sales activity in the new housing market was felt in the first half of 2010, when supply was highest and prices were at their lowest. In the last quarter of 2010, a shortage of attractive apartments became apparent, resulting in a slight decrease in sales rates.

According to Tomas Žiaugra, a market analyst at UAB “Eika”, real estate developers are currently offering about 1,600 new apartments in Vilnius. About 33% of the supply consists of new apartments in apartment buildings that are still under construction. During 2010, the supply of new apartments in Vilnius decreased by about 24%. “Although over 1,200 new apartments were sold during the year, the supply decreased by only 500 units, as the market was supplemented by about 700 apartments in new apartment buildings last year. During the last quarter of 2010, about 400 new apartments were offered to the market, so more daring buyers had the opportunity to choose attractive housing at a favorable price and reserved apartments that were just starting to be built. It is likely that the “injection” of housing supply in 2011 will be similar, but most new apartments will be offered to the market only in the second half of the year,” says T. Žiaugra. The market will be supplemented with new apartments by projects whose developers did not stop design work during the crisis.

Currently, the lack of choice of new apartments is felt in the economy class. The housing supply of this class consists of about 1,000 apartments, but as many as 500 of them are in the Pašilaičiai microdistrict. “The situation where customers could choose the best apartments in already built and recognized suitable for use houses will not occur in the near future, since the most attractive apartments in new projects attract interest as soon as they start being reserved,” says T. Žiaugra.

According to T. Žiaugra, the greater activity of buyers in the primary market in 2010 was determined by increased trust in real estate developers, a decrease in the number of bankruptcies of developers and construction companies, and unfulfilled expectations of buyers due to the fall in real estate prices. “The largest real estate developers with long experience were the most successful in selling apartments in 2010, who inspire greater confidence in buyers and are not afraid to react to fundamental market changes. For example, the four real estate development companies that recorded the largest sales in 2010 occupied about 46% of the new apartment sales market,” the market analyst calculates.

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.