February 6, 2014. Vilnius. In 2013, the amount of transactions in the apartment market has been breaking the records of post-crisis, as was stated by Inreal analysts at the conference that was held by Lithuanian Real Estate Development Association (LREDA) today. There were 2,430 new apartments sold in Vilnius (203 apartments per month, at an average), or even by 73 percent more than in 2012. There were 37 new multi-dwelling projects launched in Vilnius in 2013, which have added 2,280 apartments to the market – i.e. about 7.5 percent less than in 2012. A significant increase in sales resulted in the fact that in 2013 the demand has exceeded the new supply by 6.5 percent for the first time since the emergence of the crisis. The total rate of new construction apartment prices in Vilnius amounted to 5,050 LTL/sq. m. with an annual increase of approx. 2.5 percent.

In 2013, the prices of apartments have been increasing in 25 of the new projects, launched in Vilnius. The highest increase, 9.2 percent at an average, was noticed in the new economy-class projects. The increase in prices of the middle-class projects reached approx. 9 percent. The prices of new projects in the premium-class segment increased by approx. 11 percent. In addition, there were 10 projects at least, where, as a result of successful sales, the prices have increased averagely by 2.5-5 percent. “I would forecast, that in 2014 the demand in Vilnius should be exceeding the supply by about 15-20 percent, consequently, the trends of price increase should become even more intense – it is forecasted that the average increase in prices of new construction apartments may reach 6-8 percent” – stated Arnoldas Antanavicius, the Head of Consultations and Analysis Department of Inreal Valdymas.

The recovery of the apartment market is also being observed in Kaunas. The total number of transactions on apartments sold in a year has increased by 24 percent, and the increase of transactions in new construction segment has reached even 53 percent – a monthly average was 22 units of new construction apartments. In 2013, the new construction multi-dwelling market in Kaunas was supplemented by 10 new projects with 355 apartments, i.e. even by 1.6 times more than in 2012. Regardless of the improving rates of liquidity, the prices of new construction apartments have been decreasing by approx. 4 percent in Kaunas over 2013, i.e. up to 3,680 LTL/sq. m. According to Inrealanalysts, the major influence was made by new economy-class projects, launched in the market, where the prices were less by about 4 percent than the average price in this segment.

In contrast to the general trends, the number of transactions made in Klaipeda primary apartment market has been decreasing – about 215 new apartments were sold in a year (18 apartments per month, at an average) – i.e. by 13 percent less than in 2012. In 2013, the sales of 9 projects were launched or re-launched in Klaipeda market, that have supplemented the market with 280 apartments. In comparison with 2012, the new apartment supply decreased by about 32 percent. At the end of the year, the total rate of new construction apartment prices reached about 4,200 LTL/sq. m., i.e. the annual decrease was about 2.5 percent.

A significantly increasing activity of the second-home segment has been observed in the market – about 190 units of new construction apartments were sold in Palanga (16 apartments per month, at an average) and, in comparison with 2012, the increase in transactions was 30 percent. About 50 new apartments were sold in Neringa region (4 units per month, at an average), i.e. even by 2.9 times more than in 2012. In 2013, the sales of 5 projects were launched in Palanga, that have supplemented the market with about 230 units of new apartments – by a quarter more than in 2012. In 2013, the sales of 2 projects with 59 apartments were launched in Neringa – by 23 percent more than in 2012. The total rate of prices in Palanga decreased by 1.6 percent in 2013, up to 5,190 LTL/sq. m. As a result of growing demand and new projects in the market, the total rate of prices in Neringa was increasing by about 8 percent in 2013, up to 9,500 LTL/sq. m.

Review of Lithuanian Economics and Real Estate Market of 2013-2014 is available on the website www.inreal.lt.

 

ABOUT INREAL GROUP
Inreal group provides probably the widest spectrum of services in Lithuania, related to real estate services. The group consists of JSC "Inreal Valdymas" (Inreal Management),JSC "Inreal" and JSC "Inreal GEO". Inreal group companies belong to SC "Invalda privatus kapitalas". 90 employees are currently working in Inreal group; mediations in lease or sale of 550 thousand sq. m. of commercial premises; the value of asset, evaluated per year, is above 2 milliard Litas. Company offices or representations are operating in Vilnius, Kaunas, Klaipėda, Šiauliai, Mažeikiai, Alytus, Plungė and Utena. Currently JSC "Inreal Valdymas" develops two real estate projects: houses in Nida "Kopų vetrunges"("Dunes weathervanes") and apartments and comercial premises in Klaipeda oldtown "Danes uzutekis" ("Danes Bay"). 


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Ruta Mercaitiene
Head of Marketing and Communication
Mob. +3706 11 29779
E-mail ruta.mercaitiene@inreal.lt