June 19, 2015. Vilnius. In accordance with the data collected by “Inreal”, barely 13 percent (21 from 161) of real estate projects, which currently are being developed in the major cities of the country, use smart technologies. The majority of them are focused on lower operating costs. 

Despite the fact that smart technologies contribute to the exclusivity of real estate projects in the market, the developers’ investments in such technologies are minimal. The number of such projects is very low in Lithuania. The solutions, which meet the conception of smart technologies, are available barely in 13 percent of real estate projects, currently under development in Vilnius, Kaunas, and Klaipeda. Thus purchasers, who wish to live in smart housings, need to invest in installation of smart systems additionally.

According to Arnoldas Antanavicius, Head of Investing and Analysis Department of “Inreal”, despite the prices of smart systems are becoming lower, and their affordability not only in the luxury segment, more than one disincentive for active application of smart systems in RE market exist. “Smart technologies are expensive amenities, relatively. In addition, the developers of such systems often compete with each other and their products are hardly compatible one with another, resulting in problems related to their reliability, meanwhile remote monitoring and management of home environment enable hackers to use it for criminal purposes”, – stated A. Antanavicius. In 2014, the analysis conducted by Hewlett-Packard showed that, having analyzed 10 major smart home systems, there were about 250 possible safety issues identified. Installation of smart technologies in an already finished house leads to high repair costs due to the need of new wiring – thus it is not always an attractive and acceptable option.

It is likely that in the near future the expansion of smart systems in the Lithuanian RE market will occur through the incentive of individual RE purchasers.

Smart systems in Lithuanian RE market (.pdf)

JSC “Inreal GEO”, JSC “Inreal valdymas” and JSC “Inreal”, provides probably the widest spectrum of services in Lithuania, related to real estate. Inreal group companies belong to SC “Invalda privatus kapitalas”. About 90 employees are currently working in Inreal group; mediations in lease or sale of more than 550 thousand sq.m of commercial premises, over 550 residential housing objects, and over 300 land plots. The company mediates in 50 residential housing projects, 24 investment projects, or their portfolios. More than 4,900 valuation reports and about 80 consultations (feasibility studies, investment memorandums, and market research) are being drawn up annually. The value of asset of valuation is above 725 million euros. Company offices or representations are operating in Vilnius, Kaunas, Klaipeda, Siauliai, Panevezys, Mazeikiai, Alytus, Plunge and Utena. Currently JSC "Inreal Valdymas" develops two real estate projects: houses in Nida "Kopų vetrunges" ("Dunes weathervanes"; „Kopų vetrunges“) and apartments and comercial premises in Klaipeda oldtown "Danes uzutekis" ("Danes Bay"; „Danes užutekis“).