This post was automatically translated into English
Just five years ago, the real estate market was dominated by developers with many years of experience.
Just five years ago, the real estate market was dominated by developers with many years of experience. Currently, projects implemented by so-called single-project companies are taking up an increasing share of the market..
Of the 3.6 thousand new construction apartments currently offered to buyers in Vilnius, more than half – 63 percent – are projects implemented by newcomers to the real estate market, developing their first projects. In November alone, they added more than 550 out of 650 new apartments to the Vilnius market.
According to the data of the company “Eika”, the share of supply of long-term real estate developers in Vilnius fluctuated over the year from 24 percent in March to 43 percent in September. In both the economy and prestige class new apartment markets, newcomer projects occupy a larger share of the supply. Currently, in the economy class, the share of supply of long-term real estate developers reaches 28 percent, and in the prestige class only 20 percent. The greatest competition is currently taking place in the middle-class housing segment, where the supply of newcomers and real estate market veterans is similar – 750 new construction apartments each.
As shown by the data of the company “Eika”, in 2014, having a smaller share of supply, large developers are outperforming newcomers to the market in sales. Over the eleven months of this year, well-known developers in the economy class sold 12 percent of the available supply, while newcomers – 9 percent. In the middle class, having an equal supply, developers sold the same amount this year, i.e. every twelfth apartment.
Currently, the biggest gap is in the prestigious class. Large developers are better at selling apartments. According to Martynas Žibūda, development director of the company “Eika”, when choosing a luxury new-build apartment, one of the most important selection criteria for the buyer is likely to be trust and reputation. In the prestigious class apartment market, the share of supply from existing owners is only 20 percent, but sales reach as much as 35 percent. Recently established real estate development companies have sold every thirteenth available prestigious class apartment or 7.5 percent of the available supply by December of this year.
“The increased supply of new housing in Vilnius provides buyers with greater choice, but at the same time requires more care when choosing the right housing. Of course, first of all, a person chooses housing that meets their needs, i.e. with a certain area, number of rooms, on an attractive floor and in a city location. However, the developer who sells the housing in question is no less important,” says M. Žibūda.
The real estate expert recommends that buyers evaluate the warranty provided by the builder, inquire about the warranty service procedure, ask for contacts, who to contact in case of problems. It is also recommended to inquire about what funds – bank or home buyers – are financing the project, and whether the developer will have enough capital to complete the project, especially if the buildings are still under construction.
“When assessing the quality of projects or comparing two similar projects, you should carefully read the description of the partial finishing. For the assessment, you can also ask for the help of experts who would go together to inspect the selected housing. A carefully selected housing will not only please you, but also will not cause any worries in the future regarding warranty service or the fulfillment of other contractual obligations,” says the development director of Eika.
About the company “Eika”
Founded in 1993, Eika is one of the largest real estate development and construction groups in Lithuania, having been awarded as the best real estate developer six times. The company has already built more than 3,000 apartments and 230 thousand square meters of commercial buildings. The company’s projects “Santariškių namai” and “Eikos namai Pilaitė” were declared the best in Lithuania. The company successfully develops residential, commercial, public and other purpose building projects, creating a new quality of life and work.
More information:
Vitalija Roče
Marketing and Communications Manager
Phone: +370 698 56273
Fax +370 5 2514 256
Email. [email protected]
old.eika.lt