More than 1,200 new apartments were sold in Vilnius in 2011

Comparing new apartment sales with 2010, sales volumes decreased by 4%. “In the first half of 2011, the primary housing market was much more active than in 2010, but the tightened housing credit conditions and the uncertain economic situation in Europe in the second half of the year forced some home buyers to postpone their decision to purchase a home,” says Tomas Žiaugra, a market analyst at Eika.

In 2011, new apartments in Žirmūnai, Pašilaičiai and Pilaitė attracted the greatest interest from buyers. Sales of real estate projects in other residential districts of Vilnius were evenly distributed. Last year, 49% of new apartment sales were made up of economy class apartments, the price of which currently ranges from 2800 to 4600 litas per square meter. Since the beginning of 2011, prices in this market sector have decreased by 1%. About 38% of new apartments sold were middle class, the prices of which range from 4700 to 6600 litas per square meter. Prices in this class increased by 1% over the year. The remaining, about 13% of apartments sold, were luxury housing, the average prices of which start from 6600 litas per square meter. Advertised prices in this sector increased by 2% over 2011.

According to T. Žiaugra, real estate developers are currently offering about 1,650 new apartments in Vilnius for purchase. About 42% of the supply consists of new apartments in apartment buildings that are still under construction. In 2011, the supply of new apartments in Vilnius decreased by only 3%, as more than 500 new apartments were added to the market in various parts of Vilnius in the last quarter of the year alone. “Last year, real estate developers were active, so the supply of apartments was constantly added and fluctuated between 1,500-1,700 new apartments. Last year, the supply of economy class apartments decreased by as much as 26%. Meanwhile, the situation is opposite in the middle class – the supply increased by as much as 48%,” – calculates T. Žiaugra.

Currently, the supply of economy-class housing consists of 700 apartments, almost half of which are in the Pašilaičiai microdistrict. “The current supply structure, when economy-class housing accounts for only 43% of all newly built apartments on the market, does not meet demand. The majority of buyers are people looking for economy-class housing, but their options are limited. They can choose from only 3-4 microdistricts in Vilnius,” says T. Žiaugra.

Both the primary and general housing market in Vilnius have remained stable for the last two years, and market participants – real estate project developers – have also remained almost unchanged. After the great real estate market collapse in 2008, buyers increasingly trust real estate companies with many years of experience. In 2011, sales of the five largest real estate companies accounted for as much as 48% of primary market transactions, while in 2010, the share of sales of the same companies in the market was 38%. “Sales show that home buyers increasingly trust the professionalism, quality and approach to the client of the largest market participants. It was the trust of customers that determined the survival of these companies in the most difficult times,” says T. Žiaugra, market analyst at Eika.

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.