Growing supply of apartments gives rise to sales

Active construction in Vilnius not only improves a number of housing supply parameters but also continues to fuel buyers’ interest in new apartments. According to data from Ober-Haus, in Q1 2013, 710 new apartments in completed apartment buildings and those in progress in the five main Lithuanian cities have either been purchased or booked directly from constructors. This is an increase of 70% compared to Q1 2012. Vilnius was the unsurpassed leader with 560 new apartments sold (which is an increase of 35% compared to Q4 2012 and an increase of 87% compared to a year ago). The main reasons governing this growth were not only growing trust in the market and favourable borrowing conditions but also the significantly improved selection of apartments on offer.

Any change in the number of agreements finalised in the other main Lithuanian cities do not demonstrate any clear direction since, unlike the capital city, the development of new apartments buildings here is virtually non-existent, while the remaining vacant apartments from previously completed projects, for different reasons, are not really attracting buyers. In Q1 2013, 81 apartments were sold in Kaunas (an increase of 33% compared to Q4 2012). The number of sales and bookings in Klaipėda over the same period dropped by 39% to 66 apartments. The volumes of sales in Šiauliai and Panevėžys have not seen any major change—only 8 new apartments were sold here in Q1 2013.

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