The year of 2016 started with especially active sales in the primary housing market in Vilnius. During the first three months of this year, real estate developers sold nearly 1100 new apartments in the capital city – 32% more than during the same period last year. High activity of buyers is a reason that more apartments had been purchased in Vilnius than built, for the second quarter in a row.
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%).
About “EIKA group”
“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.
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