In accordance with real estate market analysis data of the third quarter of 2012, conducted by Inreal real estate experts, the activity of the market has been increasing. More than 500 new apartments have been sold in Vilnius, Kaunas and Klaipeda during the third quarter of 2012. Comparing with the corresponding quarter of 2011, it is even by 46 percent more. Housing supply, which has been increasing in the first half of the year, has stabilized, and currently housings are being built in Vilnius to the extent the market is able to absorb, and the demand in Kaunas and Klaipeda outstrips supply. During the third quarter 6 new residential real estate projects (488 apartments) have been started in Vilnius, one (20 apartments) – in Kaunas, and no projects – in Klaipeda. Improving economic situation in Lithuania has been positively affecting the markets of business, shopping centres and storage during the third quarter of 2012. Striking decrease in vacancies in the abovementioned sectors was observed in all largest cities of Lithuania, and rental prices remained substantially unchanged.
Comparing the third quarter of 2012 with the corresponding quarter of 2011, the increase in purchase-sale transactions of apartments by 2.5 percent, detached houses by 2.1 percent, and land plots by 3 percent was recorded. Regardless of increasing scope of transactions, less new loans are issued. Within the first 8 months of this year, in comparison with the corresponding period in 2011, housing loans were issued by 14.5 percent less. “Despite record breaking low interest rates, the statistics of recent months still show that new housing loans are issued less by 7-9 percent than in corresponding months of 2011. People remain not inclined to borrow from banks, and more and more transactions are funded from equity capital”, – stated Arnoldas Antanavicius, Head of Real Estate Management Department of JSC Inreal valdymas.
More than 500 apartments have been sold in the largest cities of Lithuania in the primary housing market during the third quarter of 2012, in comparison with the corresponding quarter of 2011, the increase reached 46 percent. The majority of them – 378 – have been sold in Vilnius, slightly more than 60 apartments have been sold in Kaunas and Klaipeda. In comparison with the second quarter of this year, new apartments in the largest cities have been sold by 15 percent more. The increase in transactions is recorded in all largest cities. Meanwhile, the supply of primary housing market is decreasing – during the third quarter 6 new residential real estate projects (488 apartments) have been started in Vilnius, one (20 apartments) – in Kaunas, and no projects – in Klaipeda. Currently the demand of new construction apartments in the capital city is slightly behind the supply, and the demand in Kaunas and Klaipeda is even ahead of emerging supply. It seems that high development of new apartment houses slowed down at the beginning of the year, and is now generally in line with market.
Increasing economic situation in Lithuania has been positively affecting the market of business centres during the third quarter of 2012. The amount of vacancies in all largest cities of Lithuania continued to decrease, and the construction of new business centres continued. It is mostly related to the improving financial indicators of companies – increasing income and profits. Naturally, some companies carried out development, and the demand for modern offices was increasing. Vacancies in modern business centres in all largest cities of Lithuania decreased by 1.5 percent: up to 6.7 percent in Vilnius, up to 4.5 percent in Kaunas, and 10.7 percent in Klaipeda. New business centres for lease are being developed in Vilnius only. A business centre with an area of almost 2.5 thousand sq. m. was opened in Pilaite prospect in the capital city in the third quarter, and three new business centres should be opened by the end of the year, which will complement the office market by 19,400 sq. m. of leasable area. However, the vacancy rate should not increase significantly, because the latter business centres will be opened already partially leased. However, potential tenants in the capital city gain more leverages in negotiations due to new business centres to be opened, and they succeed in getting more favourable lease terms. Meanwhile, slight increase, by 1-2 LTL/sq. m. at an average, in lease prices is observed in Kaunas, where the number of vacant modern office premises is the least.
Positive trends are also observed in the sector of shopping centres. Due to the increase in retail trade scopes, the number of vacancies is gradually decreasing in the shopping centres of all largest cities. It reached 2.8 percent in Vilnius, 0.2 percent in Kaunas, and 1 percent in Klaipėda in the third quarter of 2012. Despite good occupation rates, currently there are no large shopping centres under development, except the special shopping centre IKEA in Vilnius. On the other hand, retail trade shopping centres are being developed – new trade objects are being built and the old ones are under reconstruction.
Storage sector of the country maintained positive trends in the third quarter of 2012. Vacancies in modern centres of logistics have been decreasing, further approaching zero limits in all largest cities. Vacancy of premises for lease decreased from 19.1 to 4.4 thousand sq. m. in the modern centres of logistics in Vilnius during the recent quarter. Vacancy in the capital city reached only 1.2 percent in the third quarter of 2012. There were almost no vacant premises for lease in warehouses in other largest cities of the country. Nevertheless, lease prices remained stable, because market participants still find cheaper alternatives. On the other hand, it is likely that, if the economics and industry of the country continue to grow, the increase in lease prices of modern storage premises is inevitable in the long period.
More information:
Ruta Mercaitiene
INREAL GROUP Marketing and Communications Manager
Cell phone no. +370 611 29 779
E-mail [email protected]