YIT Lietuva has recorded another active quarter in the housing market, but is monitoring signs of market stabilization
Relentless demand for housing in major cities of the country continues to determine the increasing sales of new apartments as well as further development of real estate projects. Housing sales of “YIT Lietuva” increased by 76 percent in the first three quarters of this year compared to the same period last year.
In the period from January to September company sold 117 apartments in Vilnius, 116 in Kaunas, and 10 in Klaipėda. The best sales months this year were January and August.
“Demand for housing continues to be great in major cities of the country. Residents are looking for opportunities to settle in new, modern construction homes, that meet their needs, or to buy them as investment. During the first nine months of this year, we increased our housing sales not only in active markets of Vilnius and Kaunas, but also in Klaipėda, where we returned after a long break. And due to our efforts, as well as reputation, we were well received” – says Kęstutis Vanagas, managing director of “YIT Lietuva”.
Increased sales in January and August of 2019 were truly impressive. Usually the sales in January are not so great; therefore, K. Vanagas links it to the increased opportunities of the residents buying real estate, as well as active investors. By the end of the summer, many of company's new buildings already had facades and well-managed environment. Thus, seeing the result, made it easier for the settlers to make a decision.
In the capital, the largest share of newly sold apartments by “YIT Lietuva” went to the company's projects “Raitininku sodas” and “Naujoji Riviera II” as well as the residential block near Tauras Hill "Matau Vilniu", which is currently under construction. In Kaunas, the sales were determined by development of “Piliamiestis” block on the right bank of the river Neris and “Šilo namai” near the city centre, and they’re in the final stages of development. The company returned to Klaipėda after a ten-year break with a recently completed project of residential housing “9 Bijunai”.
According to the data of the real estate agency “Ober-Haus”, compared to the same period last year, 41% more apartments were realised in primary housing market in Vilnius in the first three quarters of this year, 30% more in Kaunas, and 43% more in Klaipėda than in the same period last year.
According to managing director of “YIT Lietuva”, K. Vanagas, in presence of intense competition for land plots in attractive urban areas, and as construction costs are increasing faster than the housing prices, developers, who are able to reduce construction costs, and offer housing, that meets growing customer’s expectations, though competitive prices can expect the greatest success in today’s market.
“With the conditions for granting housing loans to residents are getting more stringent, it also becomes increasingly important to weigh your investments well, to choose projects of reliable developers as well as high quality housing. When making a decision, regarding the granting of loan, the banks are not only assessing the financial capacity of buyers, but also the value of housing to be acquired as well as its demand in the market. Therefore, to get the financing, buying real estate from reliable developers can make it easier” – says K. Vanagas.
In the first three quarters of this year “YIT Lietuva” not only significantly increased the sales of new apartments, but it was also one of the companies in the construction sector, which paid the most taxes to country’s budget. Taxes of “YIT Lietuva” amounted to more than 2 million euros in nine months.
In addition to already mentioned residential housing projects currently under implementation in Vilnius, “YIT Lietuva” has recently started to develop residential block “Naujasis Skansenas”. All stages of project are planned to be completed before the end of 2025. Company also continues constructions of the urban project “Piliamiestis” in Kaunas.
Future plans - total investment of “YIT Lietuva” in the residential housing projects will reach approximately 34.6 million euros this year. Another 17.2 million euros are intended to the development of commercial premises.