Vilnius mayor Remigijus Šimašius congratulated the “Hilton Worldwide” hotel chain on its decision and on the “EIKA” company’s investment in the new project. “The establishment of a high-class hotel and the opening of a new business in the heart of Vilnius is significant for the entire city and its residents. This also symbolises the rebirth of the part of Gediminas Avenue that runs between the Seimas parliamentary hall and Lukiškės Square, which is currently being renovated. This international name that chose Vilnius will increase the capital’s attractiveness and will attract more tourists, encourage the formation of new flight routes, and attract more international events to the capital,” said R. Šimašius.

During a presentation of the project, Domas Dargis, CEO of the “EIKA group” that will be developing the new hotel, said that the flow of tourists to Vilnius, which is growing every year, and the fact that Vilnius’ hotels have some of the highest occupancy in Europe indicated that this was a very good time to invest. “We had been considering developing a hotel project on Gediminas Avenue for almost three years. A study performed by international consultants helped us decide on the right size, format, network and brand. The decision to develop the hotel was determined by the project’s location, the market situation and professionals’ recommendations,” said D. Dargis.

According to “Hilton Worldwide” senior vice-president Patrick Fitzgibbon, who is responsible for development in Europe, the Near East and Africa, the Baltic states currently have very high potential due to their high occupancy rates. This is why the hotel chain made the decision to open a hotel in Vilnius.

“The hotel “Hilton Garden Inn” that will open its doors in Gediminas Avenue will be very convenient and attractive for business-class clients. We think that this format is the most appropriate given the project’s location. In hotels like this, there are business zones that work around the clock, where guests can work. The hotel’s entire territory will be covered by especially fast Wi-Fi internet. Every room will have a work desk and ergonomic furniture. Gym will be open at all hours for active hotel guests“ said the senior vice-president, explaining the hotel’s advantages.

The hotel will be part of an 18,000-squared-metre multi-functional complex that will also include a business centre, retail gallery, cafés, restaurants, a luxury apartment building and an open public space. There will be a two-story underground parking lot under the territory that will be open to both local residents and guests. According to the CEO of “EIKA”, it will be one of the most interesting projects in Vilnius’ history because it will open a new point of interest on the part of Gediminas Avenue between Lukiškės Square and the Seimas parliamentary hall.

An international architecture competition has been announced to create a unique vision for the complex. The main task for the architects is to harmonize different functional parts of the complex, integrating the buildings with Gediminas Avenue, incorporating the early 20^th-century building in Dainavos Street, and creating functional plans for pedestrian and automobile zones.

“Hilton Worldwide” hotel chain vice-president Mike Collini, who is responsible for development in Turkey, Russia and Eastern Europe, arrived to Lithuania to present the project. During a press conference, the representative of “Hilton Worldwide” had also announced the company’s plan to open its first “Hilton Garden Inn” in Latvia in Riga’s old town.

Head of marketing and communication

Raimonda Janušonytė

Tel. +370 520 45809

Huw Harrow

Hilton Worldwide – EMEA

+44 207 856 8035

The multi-functional complex will consist of a 150-room 4-star hotel, a 5,000 sq. metre business centre, a luxury apartment block, a retail passage area and an open public gallery. Plans call for the project to cover more than 18,000 square metres. The buildings will be bound by Dainavos and V. Kudirkos streets and Gediminas Avenue.

“This will be one of the most interesting projects not just in the history of “EIKA” as a company, but in Vilnius’ history. A new point of interest and a new pedestrian zone will appear on Gediminas avenue along the part between Lukiškės Square and the Seimas parliamentary hall,” – said “EIKA group” CEO Domas Dargis.

The task given to architects asks them to harmonize different functional area of the complex, integrate the buildings on Gediminas Avenue, incorporate the early 20^th-century building on Dainavos street and design functional pedestrian and automobile zones.

The commission established by Lithuanian Architects’ Union and a project’s developer, “EIKA”, will evaluate proposals from the competition. The three best proposals will receive monetary prizes. Participant registration is open until September 9^th and proposals are accepted until September 26^th.

Detailed competition conditions can be found in the Lithuanian Architects’ Union’s website: http://architektusajunga.lt/las-konkursai/vykstantys-konkursai/multifunkcinio-komplekso-dainavos-kvartale-vilniuje-konkursas

“As real estate developers, we always feel investors’ interest in the projects we develop – we often receive offers for us to sell some of our objects. Now, we will be able to offer investors the chance to become shareholders in our projects through a special financial structure created for this purpose and overseen by the Bank of Lithuania,“ – said “EIKA group” CEO Domas Dargis.

The primary investment field will be residential and commercial projects and commercial buildings providing steady rental incomes. “The structural investment fund market in the Baltic states is still fairly young and small, but we feel its significant potential and growing market demand. We have noticed that, if investors were only interested in developed projects with consistent returns on investment a few years ago, they are now open to accept greater risks and to join projects at earlier stages of development,” – noticed D. Dargis. The investment management company will begin offering specific products to investors in the autumn of this year.

The first occupiers will open the doors of “Namų pynės” in the summer of the next year. It has been planned, that seven cost-effective energy class A apartment blocks will rise in the plot by 2021.

Development director of “EIKA”, Martynas Žibūda says that the main idea of this residential area is associated with the old bakery, which had been operating for 130 years in the place of the project. “Since ancient times, bread was bringing families to the table. Therefore, while planning the new project, we will include details related to bread, the growth and the comfort of the home”, states M. Žibūda. “We also chose facade colours to symbolise the cycle of bread – natural shades of bread and earth”, says M. Žibūda.

According to the “EIKA” representative, some of the residents of the project will park their cars above ground. For their convenience, the remaining parking will be set up under the apartment blocks. In this way, the residents of “Namų pynės” project will enjoy the green inner courtyard without cars and breathe cleaner air, moreover, children will play there safely.

The area of the former factory (1.3 hectares) will open up for the city and become an integral part of Žirmūnai district. The project will be implemented in 4 stages. It will begin with the construction of two nine-floor houses to complement the supply of housing in the city with 138 apartments. The first stage of “Namų pynės” project includes the design of apartments from 1 to 4 rooms with balconies and terraces. Two children’s playgrounds and green zones will be equipped between the houses. The area will be fenced for safety purposes.

Currently, “EIKA” develops projects in the districts of Bajorai, Šnipiškės, Jeruzalė, Santariškės, Pilaitė, Naujamiestis and the Old Town.

“EIKA”, established in 1992, is one of the largest real estate development and construction company groups in Lithuania, successfully developing residential, commercial, public buildings and other projects, creating 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, its projects “Santariškių namai” and “EIKA namai Pilaitėje” were recognised as the best in Lithuania.

Raimonda Janušonytė

Head of Marketing and Communication

Tel. +370 5 2045 809

E-mail: raimonda@eika.lt

Transactions on 1100 new apartments were made during the first quarter of this year in Vilnius that is 26% more than in the last quarter of the last year and even 32% more than in the previous year during the same period. “The primary housing market activity continues to be surprising. During the first three months of 2016, sales of apartments exceed the record highs of 2014, when the impending introduction of the euro was significantly affecting the market”, says “EIKA” development director Martynas Žibūda.

In the previous three months, real estate developers began sales in eleven new or on-going projects. 700 apartments in total were offered to the market. Supply was replenished in all market segments, but most options were proposed for the middle-class housing buyers – almost 350 new apartments. Despite the overall increase in the supply, the supply of new housing lags behind demand for the second quarter in a row. The total amount of available apartments on the market fell to 3340, while the supply was almost 4200 in October last year. Buyers looking for economy class housing can currently choose from 1360 apartments. Medium segment offers some 1440 apartments. Luxury housing buyers can now choose from 540 apartments.

According to “EIKA” development director, supply of new apartments in Vilnius decreased due to high customer activity and seasonality of the construction sector, but it is likely that during the second quarter of this year the number of offered apartments will again approach the boundary of 4000. “Growing sales and falling supply are the assumptions of price growth in the most attractive places in Vilnius. There is a trend for new projects offered to the market to start selling at a slightly higher price than apartments remaining unsold in previously built projects. Buyers are offered to choose to settle in a finished house but in less appealing apartments at a lower price, or be the first ones to buy the housing at the beginning of construction of the apartment block at a higher price yet with better future views, and better possibility of planning the space of their future homes at the initial stage”, says “EIKA” representative.

After almost a year break, sales of middle class apartments exceeded economy class sales. Middle class apartments accounted for 47% of the market sales, economy class – 44%, and the remaining 9% was in the luxury housing segment. “It seems the biggest gap between supply and demand is in the prestigious housing segment. In 2016, the demand for expensive housing remains, however, real estate developers fail to meet it on time – just 2 larger projects were offered for the market. At present, options for selecting prestigious housing are much less than we had in 2015”, notes M. Žibūda.

Since the beginning of the year, the average price for new apartments in the capital city rose by 6% to 1700 euro per square meter. This was mainly influenced by price changes of economic class and prestigious apartments. The price of economy class apartments during the first quarter of this year in Vilnius increased by 9% and currently stands at 1330 euro per square meter, prices of prestigious class apartment prices increased by 4% to 2620 euro per square meter due to new projects contributing to the supply. Meanwhile, the price of middle class apartments did not change rapidly from the beginning of the year, and is 1710 euro per square meter. In the first quarter of this year, the most popular new apartments were in Pilaitė (16%), Naujamiestis (13%), Pašilaiciai (10%) and Baltupiai (10%).

“EIKA”, established in 1992, is one of the largest real estate development and construction company groups in Lithuania, successfully developing residential, commercial, public buildings and other projects, creating 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, its projects “Santariškių namai” and “EIKA namai Pilaitėje” were recognised as the best in Lithuania.

More than 30% of new construction apartments were sold in Kaunas than in Klaipėda in 2015. Last year, about 340 new apartments were sold or reserved in the temporary capital city, i.e. 3% more than in 2014, while in the port city – 250 new apartments, i.e. 16% less than in 2014, or the same number as in 2013. According to preliminary data of the Centre of Registers, last year about 3660 apartments were sold in Kaunas, almost 11% less than in 2014, while the port city numbered at around 2720 housing transactions, 6% less than in the previous year.

“In Kaunas, primary housing market trends in 2015 were very similar to those in Vilnius – sluggish beginning of the year and uncertainty because of the euro, and then accelerated sales of the second half of the year. Meanwhile, in Klaipėda’s primary market buyers remained passive in the first two quarters of the year and only in the second half of the year sales jumped to almost reach the last year’s level”, says Tomas Žiaugra, “EIKA” development project manager.

Spacious new apartments of over 100 square meters remained the most popular in Kaunas last year. Meanwhile, in Klaipėda the customer choice in 2015 surprised developers – a long time in preference functionally planned 60 to 65 square meter three-room apartments, this year were replaced by spacious, more than 100 square meters of new housing. In the older buildings of both major cities, most popular are small one-room apartments up to 30 square meters, comprising about 18% of all sales transactions.

The price per square meter of new apartments in Kaunas is stable for the last few years and currently stands at around 1050 euro per square meter. During the year, the price rose by about 2%. In Klaipėda, the growth of average price per square metre of new apartments was similar to that in Kaunas – about 2%, the current price is around 1290 euro per square meter.

According to “EIKA” data, the supply of new apartments in Klaipėda during 2015 increased by about 7% and currently stands at about 700 newly built apartments. During the year, the market in Klaipėda was supplemented by about 10 new small-scale projects, offering about 300 apartments to customers. Meanwhile, in Kaunas new housing supply has decreased by 22% and now amounts to about 550 newly built apartments. Over the year, Kaunas market has also seen about 10 new projects with about 200 new apartments for offer to customers. “Deficiency of new projects in Kaunas leads to a stable average square metre price which is lower than in Vilnius and Klaipėda, but at the same time detrimental to the market. Real estate developers are very careful about new projects and generally hesitant to take risks to offer more expensive product for the market, questioning its demand. Situation in Klaipėda is a little different, its market is constantly supplemented by small albeit new projects that increase competition to in the current supply and provide vibrancy to the market”, says “EIKA” development project manager.

According to T. Žiaugra, in 2016 we should see more changes in the new housing market in Kaunas. “Increasing sales of new apartments throughout 2015 should help many real estate developers to decide, so Kaunas residents will be able to enjoy several new larger housing projects this year. Klaipėda should not expect major changes, the market in the port city looks rather balanced. The current level of demand will not cause more activity of real estate developers compared to 2015”, says T. Žiaugra.

“EIKA”, established in 1992, is one of the largest real estate development and construction company groups in Lithuania, successfully developing residential, commercial, public buildings and other projects, creating 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, its projects “Santariškių namai” and “EIKA namai Pilaitėje” were recognised as the best in Lithuania.

“EIKA” development project manager Tomas Žiaugra says that the year was successful for real estate developers because buyers had a huge selection of options in all classes of housing. During the year, the supply has been continuously enriched with new projects – over the year, about 3500 new apartments were offered for the market, i.e. almost the same number as sold. 37% of sales in the capital city amounted to new apartments sold in the first months after announcement of new projects

“Last year, in our new housing projects we first sold new apartments of 1-2 rooms, 28-50 square meters. People bought apartments from their own savings as a better alternative to invest compared to low deposit rates. This trend was observed in all segments. The value of most popular housing acquired as an investment was up to 90 thousand euro”, says “EIKA” representative.

In 2015, the most popular district in the capital city by the sales of new apartments was Naujamiestis (550 apartments), replacing Pilaitė – the leader in this field, where 350 apartments were sold last year. Pašilaičiai (313 apartments) is in the third place in terms of popularity. The largest proportion of sales – 44% in Vilnius were occupied by economy class apartments, but the number of transactions per year dropped by 7%, and this share went to the middle class last year. Sales in this class comprised 40% of new apartments or 26% more than in the previous year. The biggest jump occurred in the luxury housing segment, where the company sold 550 apartments last year, i.e. almost 3 times more than in the previous year. Sales of luxury new apartments last year totalled 16% of the market share.

“During the year, the average price of new apartments in Vilnius increased by 1.2% and now amounts to 1600 euro per square meter. “The price changes in the market took place due to the change in the structure of new housing supply. More higher-end projects were offered for housing seekers, resulting in a slight rise of the market price of apartments. During 2015, the supply has mostly grown in the middle class, by 21% – from 1460 to 1770 apartments, and by 17% in the prestige class – from 390 to almost 460 apartments. In the economy class, on the contrary – the supply decreased by 10%, from 1764 to 1590 apartments”, says “EIKA” development project manager.

The overall supply in Vilnius during the year increased by only 5% and now amounts to 3800 apartments. Currently, the largest choice of new apartments is waiting for buyers in Naujamiestis (680 apartments), less in Šnipiškės (550 apartments), where real estate developers launched several large projects this year. Baltupiai is the third with 390 new apartments offered to buyers.

According T. Žiaugra, in 2015 the market was flooded with investment. Real estate developers, inspired by buyer activity in the middle of 2014, boldly invested in residential development while housing buyers, being convinced that introduction of the euro did not affect housing prices, boldly spent their savings – more than half of the new apartments were purchased by own funds. According to the expert, real estate developers will choose their investment policies more carefully in 2016. With gradual growth of the stock of unsold apartments, less attractive apartments will remain in the market, therefore, developers will be forced to increase liquidity, likely, by reducing the prices of some apartments. Meanwhile, such situation will be useful for customers and especially for those who did not dare to purchase new housing in 2015.

“EIKA” representative predicts that this year’s new apartment sales will not exceed the limit of 3200 apartments. On average, 250-270 apartments a month will be sold, i.e. activity of buyers will remain at similar level to the last quarter of 2015, when the effect of new projects did not influence the market. Supply on the primary market of the capital city should remain at about 4000 new apartments in 2016. Last year, some developers rushed to change their plans and contributed to the supply in 2015, while large new projects are likely to supplement the market in the spring of this year, and bring the supply back to the boundary of 4000.

“EIKA”, established in 1992, is one of the largest real estate development and construction company groups in Lithuania, successfully developing residential, commercial, public buildings and other projects, creating 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, its projects “Santariškių namai” and “EIKA namai Pilaitėje” were recognised as the best in Lithuania.

“I think, the main reason for successful sales is a large variety of different projects. We were the only one in the market to offer up to eight projects in Vilnius for those looking for a new home. Moreover, our new project management service to external developers proved to be profitable. We have successfully implemented “Švitrigailos namai” and “Tilto-12” projects, which have helped to offer a wider range of apartments in medium and prestigious housing categories”, says Martynas Žibūda, development director of “EIKA”.

“The year of 2015 was record high both to our company and to the whole Vilnius real estate market. Expert forecasts for reducing sales after introduction of the euro, or drop of prices due to stiff competition, did not materialize. Last year, buyers also boldly chose housing and had better selection options than ever before. Very low base interest rates on loans also contributed to the purchase of housing and those buying at own funds chose real estate as a more lucrative alternative to low deposit rates. If in 2013 banks credited as much as 69% of our apartment sales, last year only 46% of customers were using a bank loan for housing purchase. This indicates a relatively strong financial position of housing buyers, which we hope to maintain this year”, says “EIKA” development director.

Last year, as well as in previous years, the most popular was project in Pilaitė by “EIKA”, in which 146 apartments of new construction were sold. 74 apartments and town houses were sold in “Santariškių namai” project developed near Verkiai regional park since 2005. In the third place was the new project in Naujamiestis – “Švitrigailos namai”, where 61 apartments were sold..

In 2015, “EIKA Group” invested 12.5 million euro in real estate development in Vilnius and added 450 new apartments to the general supply, i.e. 50% more than in 2014. This year, “EIKA” is planning to contribute to the new construction housing supply in Vilnius with 350 new apartments. In 2016, the company will continue the development of residential neighbourhoods in Pilaitė and Bajorai districts, will complete “Santariškių namai” project and launch new residential projects in Žirmūnai and Šnipiškės.

“EIKA”, established in 1992, is one of the largest real estate development and construction company groups in Lithuania, successfully developing residential, commercial, public buildings and other projects, creating 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, its projects “Santariškių namai” and “EIKA namai Pilaitėje” were recognised as the best in Lithuania.

After purchasing the housing, based on the agreement with its owner, Eika commits to install individual finishes and find a tenant whose rent will comprise 5 per cent of the housing value per year.If the rental income is lower than the guaranteed return provided for in the contract, the company will compensate the loss of income.Duration of the guaranteed return on investment is 2 years. According to Martynas Žibūda, development director at EIKA, this is a new form of investment never offered by any other real estate company until now.

“We believe that this market innovation should, in particular, be of interest to individuals living not in Vilnius, or not in Lithuania, who are physically unable to take care of the housing, it’s installation or the search of tenants.This should also be relevant to people who want to dedicate all of their time to direct professional activities, but also look for opportunities to make investments yielding higher but guaranteed return”,  M. Žibūda lists the advantages.

Most rent-attractive 1 or 2 bedroom apartments were selected for the investment.Investors can choose from more than 100 new apartments in five projects in Vilnius.During the purchase of housing, the individual housing installation project is agreed with the architect and the company then furnishes the apartment and prepares it for rent within two months.The fixed apartment decoration price might be different depending on the project, in which the buyer chooses to invest. It ranges from 390 euro per square meter in the budget class projects up to 1,000 euro in prestigious class apartments.

According M.Žibūda, if a client buys a new 50 square meter apartment in a building in Jeruzalė for 70 thousand euro, the furnishing and finish of such housing would cost about 20 thousand euro. “Therefore, the total value of the apartment could reach 90 thousand euro and the owner would recover least 4500 euro or 375 euro per month from the rent during the year. At the end of the guaranteed return period, the investor may choose to continue to rent or sell his housing”,says EIKA representative.

After purchasing the apartment, the investor can choose from the two tenants best suited for him, offered by EIKA.The apartment owner will not have to pay brokerage fees or place ads, looking for a tenant, or wasting his time for showing the apartment.The contract will be signed directly between the tenant and the owner.The owner will also get income directly from the tenant.

Investors can choose apartments in as many as five projects in Vilnius: EIKA namai Pilaitėje, Santariškių namai, Domino namai, Link parko, and Basanavičiaus 9A.