The most popular district of Vilnius among investors and young families who love an active social life and are still planning to have children. It is also listed among the possible choices by families with young children. This is how real estate experts describe Naujamiestis – has been considered one of the most fashionable places to live in the capital for several years. It is estimated that in order to obtain a housing loan in the aforementioned area, the salary of each of the two working family members must reach 900–1,000 EUR.
Currently, 12 different projects are being developed in Naujamiestis, where you can choose from a supply of 460 apartments. True, more than half of the projects are completed and only a few unsold apartments remain there. “Naujamiestis is always among the districts of the capital with the highest demand. It is the closest district to the Old Town, so buyers are confident in the positive outlook for the district’s value and price growth. Buyers believe that housing in the Old Town, like in Naujamiestis, will become more expensive in the future,” says Justinas Šavelskis, Sales Manager at “Eika”. According to him, apartments in Naujamiestis are often purchased by those who dream of living in the Old Town, but cannot afford to buy housing there. Therefore, they choose the closest alternative, which is about a third cheaper.
Considering life without a car
It is noted that Naujamiestis is attractive to both real estate developers and buyers. The district has no shortage of buildings and places that can be transformed into new houses or entire blocks. By replacing old houses with new ones, public spaces are changed and improved. Such transformations increase the value of housing in the district.
New residents of the New Town identify the easily accessible Old Town as their main priority. “For some, the distance to an office in the Old Town is important, for others, the distance to Trakų Street, the town hall or the cathedral. For many residents, it is also important to have cafes, restaurants or other places to spend their free time nearby,” says J. Šavelskis.
According to him, when choosing a home, buyers often consider whether they will need a car while living in Naujamiestis. This way, they can save from 10 to 20 thousand euros for a parking space and use those funds, for example, for home decoration.
Ideal middle-class housing area
The real estate expert notes that Naujamiestis competes with Šnipiškės or the beginning of Markučiai, which buyers tend to mistakenly call Užupis. Prices in the aforementioned part are lower than in the Užupis district itself.
“The average price per square meter in Naujamiestis is 2,300 EUR, but the district can be divided into two parts based on prevailing prices. The average price of apartments for sale between Pylimo and Švitrigailos streets is about 2,640 EUR, which also includes the currently developing “Baltas lapas” quarter, and from Švitrigailos to Žemaitė, Savanorių avenue – about 2,070 EUR per square meter. When purchasing a standard 2-room apartment, the difference between the two parts of Naujamiestis would be about 30 thousand EUR. Of course, the closer to the Old Town, the more expensive it is,” says the sales manager of “Eika”.
Average prices in Naujamiestis are much lower than in Senamiestis (3,180 EUR per sq m) or Užupis (2,800 EUR per sq m) and closer to Šnipiškės (2,150 EUR per sq m).
“For the fourth year in a row, middle-class property sales have been growing, while economic ones have been decreasing. It is natural that when the economy grows, salaries and people’s needs increase, they choose Naujamiestis instead of the bedroom districts on the outskirts of Vilnius. People can afford higher-class housing, and Naujamiestis can be called a perfect middle-class real estate district,” J. Šavelskis reviews the current trends in the real estate market.
Loyal to your district
Eika, which is developing the project “Baltas lapas” in Naujamiestis, estimates that 44 percent of the apartments would be sold for investment, and 56 percent for personal use. The real estate expert notes that Naujamiestis is unique in that the line between purchasing for personal use or investment is very narrow.
“When buying a home for themselves, buyers often call it a good investment. Younger customers – 22–30 years old – purchase apartments to live in for themselves, and when family plans become more serious, they will look for a larger home, which they will be able to rent out. Their priority is a 25–45 sq m apartment with a separate bedroom. Another part of investors is older people, currently living away from the center and raising children. However, in the future, when their children leave home, it will be more convenient for them to live near the Old Town,” says J. Šavelskis, describing the choices of investors.
The most popular among buyers are apartments with small, rationally sized bedrooms of 10–12 sq m and a larger living room. A large part of the settlers purchase housing with their own funds.
“The buyer of the New Town has the aspiration to live in that area and usually remains loyal to it throughout his life, it is almost impossible to lure him to another area. He wants to live near the center, reach his favorite places in the Old Town on foot, and be independent of the car,” says J. Šavelskis.
