Different new housing market trends in Kaunas and Klaipėda 2016.02.03

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.