The supply of new apartments is rapidly decreasing in Kaunas, while there is relative calm in Klaipėda

“The new housing market in Kaunas is characterized by activity. The first quarter of this year was the most successful in the last two years. There are no major changes in the port city, and both buyers and real estate developers are quite cautious about new investments,” says Tomas Žiaugra, head of development projects at Eika.

According to the data of the company “Eika”, currently those looking for housing in the temporary capital can choose from 510 new construction apartments. The supply in Kaunas has been decreasing for the fifth quarter in a row. In Klaipėda, the supply reaches 610 apartments, the number of vacant apartments on the market has not changed for more than a couple of years – as many apartments are purchased, so many new supply are offered to the market by real estate developers.

“If the supply and demand ratio in Kaunas moves in the same direction, it is likely that buyers will face a significant shortage of attractive apartments in the near future. Such a situation will provide investors with more safeguards to launch new projects in the city. The situation in Klaipėda is somewhat different. The sluggish activity of buyers and ongoing projects, gradually adding to the supply, maintain balance in the new housing market,” says T. Žiaugra.

In the secondary housing market, as well as in the new housing market, there is a greater activity of Kaunas residents than of the port city residents.  According to preliminary data from the Center of Registers, in the first quarter of 2016, about 980 apartments were sold in Kaunas, or 4 percent less than in the fourth quarter of 2015 and 44 percent more than in the same period last year. In the port city, about 670 housing sales transactions were concluded in the first quarter of this year, i.e. 4 percent less than in the fourth quarter of 2015 and 21 percent more than in the first quarter of 2015.

In Kaunas, the average price per square meter of new housing did not change in the first quarter of 2016 and currently stands at 1,090 euros. Over the year, the average price of new apartments in the temporary capital increased by 6 percent. According to an Eika representative, the biggest influence on the annual growth of the average price of new apartments in Kaunas was exerted by new projects, the sale price of which is significantly higher than the market average. In Klaipėda, the price of new apartments remains stable and currently stands at about 1,300 euros per square meter, almost the same as in April 2015.

“In 2016, the Kaunas new housing market will inevitably attract the attention of real estate developers. A new trend is emerging – Kaunas residents are starting to prefer living closer to the city center, rather than the cottage districts sprouting on the outskirts of the city. In Klaipėda, the new housing market could be shaken up by new market participants who can offer buyers small, compact housing in popular areas of the port city, but for now, the current market activity and land prices in Klaipėda are forcing investors to postpone their plans,” says the development project manager at Eika.

Founded in 1992, the company “Eika” is one of the largest real estate development and construction groups in Lithuania, successfully developing residential, commercial, public and other purpose 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.

Tomas Žiaugra
Development Project Manager
Phone: +370 614 95 491
Email. [email protected]
old.eika.lt