The supply of new apartments in Vilnius has exceeded 4,000 units

The second quarter of 2015 recorded a 38% increase in the number of new apartment sales transactions compared to the first quarter of this year and a 33% increase compared to the same period last year. When comparing the first half of 2015, sales were only 3% behind the record-breaking results of the first half of 2014. Real estate developers in Vilnius sold about 1,020 new apartments in the second quarter,  and 1,750 apartments in the first half. The most popular new apartments this year were in Naujamiestis (15%), Baltupiai (13%) and Pilaitė (9%).

The majority – 46% – of new apartment transactions in Vilnius in the second quarter of this year were for the middle class. Slightly less,  41%, were sold for economy class apartments and only 13% of the apartments sold were for the luxury housing segment. Although the prestigious class has the smallest market share, the activity of buyers in this segment has increased significantly. According to the calculations of the company “Eika”, during the second quarter of 2015, luxury apartments were sold four times more than in the same period last year.

“Extremely high interest in new apartments was felt in March-May, as both buyers and real estate developers were active in the market. First of all, the decision to purchase housing was made by buyers who did not expect major price changes, who hesitated to purchase housing at the end of last year, expecting price adjustments after the introduction of the euro. Real estate developers started sales in almost twenty new projects in various parts of Vilnius in a few months, so buyers who had been waiting for a long time only had to choose. Buyers have not had such a wide choice of housing since 2007,” says Tomas Žiaugra, development project manager at UAB “Eika”.

In the second quarter of 2015, the average price per square meter of newly built apartments in Vilnius increased by 4.5% to 1,640 euros, and in the year since July last year, by as much as 7.0%. The growth in average apartment prices in the second quarter of this year was mainly influenced by the increased supply of medium and prestigious class apartments on the market, as there were no price changes in individual projects. The price of economy class apartments in Vilnius increased by 4% during the quarter and currently amounts to 1,310 euros per square meter. The price of medium class apartments has increased slightly, by just 1%, to 1,710 euros per square meter, while the price of prestigious class apartments has decreased by 4% to 2,540 euros per square meter. According to an Eika representative, the decrease in the price of luxury housing on the market was mainly influenced by the most expensive apartments purchased in new projects.

In the second quarter of 2015, the market was supplemented by as many as 1,700 new-build apartments, and the supply in Vilnius, even after taking into account extremely active sales, increased by 22%. According to the data of the company “Eika”, about 4,100 new-build apartments are currently offered for purchase in the primary housing market of Vilnius. The supply during the second quarter of this year increased the most, by as much as 52%, in the middle class. Buyers looking for housing in this segment can choose from 1,940 apartments. The supply of prestigious class apartments grew by 19% during the quarter and currently amounts to 480 apartments. The smallest number of new projects was offered in the economy class. The growth in supply was offset by active sales, so the choice of buyers in this segment has not changed. Currently, those looking for new-build housing have the largest choice in Naujamiestis (17%), with Baltupiai (11%) and Antakalnis (9%) ranking in second and third place.

According to the development project manager of Eika, by the end of the year, the market should be supplemented by about 1,000 new apartments. “In the second half of the year, we expect half as many new projects, but the choice of buyers will remain record-breaking – by the end of the year there should still be about 4,000 vacant apartments in Vilnius. It is no secret that in new projects, the most popular apartments are purchased first, so it is likely that sales will slow down to 230-250 apartments per month by the end of the year. The significantly increased supply will not only encourage more active competition among real estate developers, but will also increase the risk for buyers to choose a project from an unreliable real estate developer, whose ability to complete the project becomes limited due to the slowdown in sales,” predicts T. Žiaugra.

Founded in 1992, EIKA is one of the largest real estate development and construction groups in Lithuania, successfully developing residential, commercial, public and other building projects, creating a new quality of life and work. The company has already built more than 3,000 apartments and 270 thousand square meters of buildings. Eika has been awarded many times as the best real estate developer in Lithuania, and the company’s projects “Santariškių namai” and “Eikos namai Pilaitė” have also become the best in Lithuania.