A delegation from the Finnish Embassy and Finnish Lithuanian Chamber of Commerce visited Kaunas: some companies can wait for better times
Housing sales in Lithuania continue to be much higher than last year, but comparing the results of the third quarter this year with the beginning of the year 2021, clear signs of market stabilization are being noticed. These tendencies are illustrated by the results of sustainable urban development and construction company housing sales. During the third quarter the company sold 42 percent more flats than during the same period last year, but no longer recorded such hights in sales as at the beginning of the year. They were 54 percent lower than in the second quarter of the year, but still accounted for over a hundred flats sold (104).
In July, August and September the company sold 63 flats in Vilnius and 40 flats in Kaunas. This is respectively 40 percent and 67 percent more than during the same period last year. One of the last flats was sold in the project 9 Bijūnai implemented by YIT Lietuva in Klaipėda in the third quarter.
The project Naujasis Skansenas being implemented in the reviving Šnipiškės district of the capital and the Piliamiestis home block being developed in Kaunas on the right bank of the Neris River have received the greatest buyers‘ attention. 47 and 39 flats have been sold there, respectively. Another 14 flats have been sold in the Matau Vilnių habitation under construction near the Tauras Hill in the central part of Vilnius.
“At the beginning of the year the extremely fast growth of the market seems to be slowing down and stabilizing. We are currently on the path of sustainable growth and while 30-40 houses sold per month may not look as impressive as the records reached in March or April, it is certainly a good result, especially considering that the vacancy portfolio is currently much lower than at the beginning of the year. The demand for good quality new housing in the country's major cities is still high. This is also shown by the tendency that often all or almost all flats in our projects are purchased before the end of construction, ”says Kęstutis Vanagas, the General Manager of YIT Lietuva.
According to K. Vanagas, housing prices are likely to continue growing in the near future due to the continuing high demand and rising prices for construction materials and labour. There is no doubt that once the market cools, the rise in prices should be more moderate. Besides, next year the market will be replenished with new projects and vacant flats, which should also contribute to a slowdown in price growth.
YIT Lietuva is planning to start the 11th stage of the Piliamiestis development in Kaunas this year, and next year it is intending to start with new stages of Naujasis Skansenas and Matau Vilnių projects in Vilnius. In the year 2022 the company is also planning a new project in the Viršuliškės home block of the capital.
This year the company has already sold a total of 457 flats in Lithuania, that is 61 percent more than during all the previous year. For comparison, this year YIT sold 209 flats in Latvia and 166 flats in Estonia.
Currently, YIT Lietuva is implementing the 3rd stage of Matau Vilnių project in Vilnius next to Tauras Hill and is developing Naujasis Skansenas houses in the reviving Šnipiškės. In Kaunas, on the right side of the Neris embankment,situated on the other side of the Old Town, a modern Piliamiestis block of houses is being developed.
About the YIT Lietuva company group constructor
The sustainable urban development company YIT Lietuva has been operating in Lithuania since the year 1966 and belongs to one of the largest construction service groups in Eastern Europe, YIT Corporation, operating in ten countries. YIT Lietuva successfully implements contracting, housing, commercial real estate, building maintenance activities, infrastructure development and road construction works.