August 21, 2013. In accordance with Inreal review, in the first half-year the demand in RE market was growing, while the supply – decreasing. The first half-year of 2013 was characterized by particularly active purchasers – liquidity of new construction apartments in Vilnius market almost reached the pre-crisis level. The capital city was also prevailing in the commercial real estate segments, where not only vacancies have decreased, but also lease prices have increased.
“The positions of “purchasers’ market”, which was prevailing during crisis, are now becoming weaker – more and more negotiating levers occur in sellers’ hands as a result of increasing demand and decreasing supply”, - states Arnoldas Antanavičius, the Head of Consultations and Analysis Department of Inreal. According to him, the first half-year of 2013 was characterized by significantly active purchasers. 12,053 of apartment purchase-sale contracts were signed in Lithuania – by 21 pct. more than in the same period in 2012. The increase was recorded in new construction apartment segment as well – about 1,400 of new apartments were sold – i.e. 48 pct. more that in the first half-year of 2012. During the first half-year the sales of 29 new projects with more that 1,200 apartments were started in Lithuania. In comparison with the corresponding period of the previous year, the amount of new apartments, offered for the market, is twice less.
According to Inreal analysts, liquidity of new apartments in Vilnius market almost reached the pre-crisis level – selling off the existing supply would take about 12 months. This rate is almost two times better than a year ago. Housing market in Kaunas has also gained acceleration – the amount of apartments sold in the half-year was 17 pct. higher than a year ago. Investments in this segment were increasing – projects, suspended during crisis, are being re-launched. “Coastal resorts have also recorded the increase in new apartment demand: the amount of new construction apartments, sold in Palanga, was higher by two-thirds, while in Neringa – 8 times more than in the first half-year of 2012”, – states A. Antanavičius. Only in Klaipėda the sales of new apartments decreased by 20 pct., although the demand of old apartments were increasing.
The increase in transactions in private house and land plot segment was more moderate – in the first half-year of 2013 the amount of registered transactions on purchase-sale of private houses in Lithuania was 5,008 and land plots – 17,070, i.e. respectively, 3.5 pct. and 9 pct. more than in the first half-year of 2012. The most popular land plots were agricultural land plots, which made up about 72 pct. of all transactions.
“Vilnius was prevailing in the commercial real estate segment. In the first half-year of 2013 vacancies in business centres segment in Vilnius decreased from 7.1 to 4.7 pct., lease prices averagely increased by 5 pct.”, - says A. Antanavičius. According to him, it encouraged the emergence of new projects. At the end of the half-year, in addition to five business centres, currently being under development, which should supplement office market in Vilnius by approximately 40,800 sq. m. of leasehold area, it is expected to start constructions of 3 new business centres with 32,600 sq. m. of leasehold area. The implementation of these projects will lead to the increase in modern office market in Vilnius by a fifth. As regards not so active Kaunas and Klaipėda markets, people continue avoiding investments in this segment. Vacancies in Kaunas decreased from 5.5 percent to 4.6 pct. within the half-year, lease in lower-class office centres averagely increased by 5 pct. In Klaipėda the trends were the worst – vacancies in modern business centres increased from 13.8 pct. to 15.9 pct., and the prices remained stable.
Trading volumes in the shopping centre segment continued growing, vacancies were decreasing. The majority of new projects were started in the capital city, however more active investment in this segment is expected in Kaunas and Klaipėda in the nearest future. According to the analysts, the emergence of new strong trademarks in Lithuania is significantly enlivening the shopping centre lease market – almost always full major shopping centres of the country are forced to terminated the contracts with weaker lessees as a result of emergence of new and stronger lessees. Those weaker ones, in turn, are moving to the outlying shopping centers where vacancies are also rapidly decreasing. In the middle of the year vacancies in Vilnius shopping centres reached 2.1 pct. (7,900 sq. m.), in Kaunas – 2.0 pct. (4,050 sq. m.), and in Klaipėda – just 0.3 pct. (440 sq. m.).
In the first half-year of 2013 the volumes of Lithuanian Industry production and export continued to grow. The storage premises market continued to develop, inconsiderable increase in lease prices was recorded. The amount of logistics centres, developed for lease, was increasing in the capital city. Vacancies in Vilnius reached 2.7 pct. (9,660 sq. m.), this rate remained close to 0 pct. in Kaunas, while in Klaipėda – 1.3 pct. (1,030 sq. m.). In early 2013 the managers of logistics centres were increasing lease prices for new lessees by 5-7 percent. The lease prices of modern logistics centres reached 12-17 LTL/sq. m. in Vilnius, 11-15 LTL/sq. m. in Kaunas, and 10-15 LTL/sq. m. in Klaipėda. The average lease prices in old logistics centres increased by at least one Litas within the half-year. The lease prices of such premises reached 6-10 LTL/sq. m. in Vilnius, 5-9 LTL/sq. m. – in Kaunas, and 5-8 LTL/sq. m. – in Klaipėda.
ABOUT INREAL GROUP
Inreal Group, which consists of JSC "Inreal Valdymas" (Inreal Management), JSC "Inreal" and JSC "Inreal GEO", provides the widest spectrum of services in Lithuania, related to real estate services. Companies of Inreal group belong to AB "Invalda privatus kapitalas". Around 90 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, and the value of asset, evaluated per year, is reaching 2 milliard Litas. Company offices or representations are operating in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys, Mažeikiai, Alytus, Plungė and Utena.
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