February 7, 2013. Vilnius. According to Inreal analysts, Lithuanian Real Estate (RE) market continues to be more active. Sales in residential sector are increasing, the number of customers, purchasing RE as an investment, is growing. In commercial and trade sectors new projects are being developed, the demand is growing, and the number of vacancies is decreasing. The logistics sector of RE is waiting for a breakthrough.
The last year differed from the previous ones by the activity showed not only in the capital city Vilnius, but also in the coastal region. “The sales in the coastal region were started in 19 new projects, and in Vilnius – 40 new projects: respectively, 677 and 2522 apartments entered the market – i.e. 96 per cent of new supply in Lithuania”, – stated Arnoldas Antanavičius, the Manager of Consultations and Analysis Department of Inreal. According to him, low deposit interest rates promote investments to apartments for rent becoming more popular.
The commercial segment was growing in the capital city only. In 2012 six new business centres (21.000 sq. m) were opened. There was an active migration of tenants to the higher class business centres, lower class offices had to reduce prices in order to maintain current tenants or attract the new ones. “Comparing the capital cities of our neighbouring countries or other European countries, Vilnius has the smallest area of business centres, thus there is sufficient potential for development”, – stated Inreal analyst. There were no new business centres opened in Kaunas and Klaipėda. According to A. Antanavičius, Kaunas and Klaipėda market is not favourable for new office projects due to low lease prices, and the development of business centres in the port city is also impeded by high number of vacancies.
Meanwhile the activity in the supermarket sector was observed in all large cities: fewer vacancies, higher lease prices. After a break of more than two years, new projects are planned to be developed: DomusPRO and Olinda in Vilnius, Banginis in Kaunas, PC Luizė in Klaipėda. In 2012 the largest area for trade in the retail trade segment was opened by Norfa, Maxima and IKI, however it was less area than in 2011. “Retail trade networks perfectly used the years of crisis by locating in new places and strengthening their positions, and further development of this sector is related with the development of the major shopping centres”, – states A. Antanavičius.
According to Inreal analysts, the rates of vacancies in modern logistic centres are reaching historically low rates, the demand exceeds the supply, but there are not many new projects developed. The most active development is built-to-suit or 3PL logistic centres. It is still being avoided to develop new logistic centres for leasing market. “Lease contracts with lower prices than in the market, signed during crisis, are expiring, so in 2013 a breakthrough is expected, lease prices should increase, and the constructions of logistic centres should become more active”, – says A. Antanavičius. In 2012 lease prices of modern logistic centres in the largest cities of Lithuania increased by 5-10 per cent at an average.
According to Inreal analysts, in 2013 Lithuanian RE market will remain growing. The number of purchasers will continuously grow in the housing sector. The prices in the new housing sector should remain stable because of high supply, and, possibly, the prices of old construction apartments will not decrease any more. The amount of vacancies in Vilnius business centres market should become less and lease prices should grow. New business centres projects could occur in Kaunas after a break of several years. After the implementation of the projects in the shopping centres segment, started in 2012, there will be no new ones, probably, and the increase in prices will become stable. A breakthrough, which is expected in the logistics sector, should increase lease prices by 4-6 per cent and encourage the development of new projects.
ABOUT INREAL GROUP
Inreal Group, which consists of JSC “Inreal Valdymas” (Inreal Management), JSC “Inreal”, JSC “Inreal Pastatų Priežiūra” (Inreal Building Maintenance) (related to companies, administering apartment houses) and JSC “Inreal GEO”, provides the widest spectrum of services in Lithuania, related to real estate and building maintenance services. Companies of Inreal group belong to SC Invalda. More than 300 employees are currently working in Inreal group, the value of managed assets – about 400 million LTL, mediations in lease or sale of 550 thousand sq. m. of commercial premises and 1150 apartments, the value of asset, evaluated per year, is reaching 2 milliard Litas, and the area, administered by companies of building maintenance sector – 1 million sq. m. Company offices or representations are operating in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys, Mažeikiai, Alytus, Plungė, Šilalė and Utena.
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INREAL GROUP
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