Over 2,500 apartments sold in Vilnius in the first half of 2010

In the first half of 2010, 68 percent of new housing sales were economy class apartments, whose price currently ranges from 2800 to 4600 litas per square meter. During the first six months of 2010, prices in this market sector increased by about 2 percent, mainly due to the decrease in supply in the most attractive projects in Pilaitė and Lazdynai. About 27 percent of sales were for mid-range apartments,  which range from 4600 to 6400 litas per square meter. The prices of mid-range apartments increased by about 3 percent on average during the first half of this year, as the cheapest apartments in this segment have already been sold. The largest number of new construction apartment sales in this class took place in Santariškės and Šiaures Miestels. The remaining apartment sales, only 5 percent, were for luxury apartments, whose prices start at 6400 litas per square meter. Prices in this sector decreased slightly in the first six months of this year, by only 1 percent, as the supply of housing in this class is quite high and the demand is low.

“The trend remains that the largest, most experienced real estate developers have been the most successful in selling apartments. A well-known company name and experience inspires greater confidence in buyers. For example, the 4 real estate development companies that recorded the largest sales in Vilnius accounted for over 50 percent of the new apartment sales market,” the market analyst calculates.

In other major Lithuanian cities, housing purchases remained passive. According to preliminary data from the Center of Registers, over 900 transactions were concluded in Kaunas during the first half of the year, of which only 3 percent were for new construction housing. In Klaipėda, 50 more apartments were sold than in Kaunas, of which 6 percent were for new construction.

According to Tomas Žiaugra, a market analyst at UAB “Eika”, real estate developers in Vilnius are currently offering about 1,400 already built new apartments. Another 100 apartments should be added to the market by the end of the year. Since the beginning of the year, the supply of new apartments in completed and under-construction projects has decreased by about 28 percent. The supply of new, attractive housing continues to decrease, and interest in such apartments has increased significantly in the first half of this year, especially in the economy class.

“The supply of apartments in the most attractive projects in Vilnius is rapidly decreasing, so in the near future the choice of customers will be very limited. In the last half of the year, due to the reduced supply of new housing, customers have started to reserve apartments in houses that are still under construction – something that seemed impossible a year ago. In 2011, the supply of new apartments will undoubtedly be supplemented by new projects, as the largest developers are already raising cranes this year,” says T. Žiaugra.

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 standards ISO 9001:2000, Environmental standards ISO 14001:2004 and Occupational Health and Safety standard OHSAS18001:2007