"YIT Lietuva" for 23 million Eur will build "Urban HUB" in Vilnius
Recently, rapidly rising housing prices and interest rates have reduced both the affordability of real estate for Lithuanian residents and market activity. However, the sustainable urban development and construction company "YIT Lietuva" remained resistant to these trends. This is shown by the results of housing sales of the real estate developer in the second quarter of this year. In the months of April-June 2023, the company sold 25 apartments in Lithuania, and these sales are equal to the results of the company in 2018, when the real estate market operated in healthy economic conditions and was unaffected by the pandemic. Therefore, the representatives of "YIT Lietuva" consider such a situation as balanced, ensuring business stability and enabling further development of the planned projects.
In the second quarter of this year, the company sold the most new homes in Vilnius. Buyers bought a total of 13 apartments in the capital. At that time, 12 of them were bought in Kaunas in the months of April-June 2023. The modern residential block "Naujasis Skansenas" developed by the company in the Šnipiškii district, known as the new center of the capital, attracted the greatest interest of buyers. In it, the settlers bought almost all the apartments sold by the company in Vilnius. In Kaunas, the "Piliamiestis" quarter, which is being built on the right embankment of Neris, remains one of the most attractive new districts of the city. It bought 11 new apartments sold by the company in the temporary capital in April-June this year. "When observing the general situation of the real estate market, we can see that due to increased housing prices and interest rates, the purchasing power of residents is slowing down, their opportunities to purchase apartments are currently reduced, and the time taken to make housing purchase decisions has increased. However, in our case, the effect of the changed conditions is quite limited, since we operate in the segment of higher incomes, this allows us to feel stable, and to consider the market situation as truly balanced. Because the results of the second quarter of this year are equal to the sales of 2018. And then we lived in healthy economic conditions before the pandemic. At that time, residents did not have as much money saved or state support as in 2019-2021, when real estate sales reached record highs," says Kęstutis Vanagas, head of YIT Lietuva company. According to him, these results of the company maintain the stability of the company and do not stop the further development of projects. The developer continues to successfully continue the construction of the "New Skansen" quarter in Vilnius and Kaunas "Piliamiestis" district, which is particularly popular with buyers. Also, the implementation of the last stage of the prestigious capital project "Matau Vilnių" is currently being completed. For its part, in Kaunas, the company is preparing for an unprecedented transformation of the industrial area located on the Aleksot hill. Here, the construction of the new "Matau Kaunas" quarter, which is lively, community-oriented, with exceptional architecture, begins. "Although we are talking about the cooling of the market at the moment, we see huge development prospects in it. This is especially relevant in the capital's Naujamiestis district, which is experiencing an exceptional conversion, where we purchased a plot on Basanavičiaus Street and are planning the construction of residential houses. In addition, we also see great potential in Vilnius Viršuliškės, where we intend to develop the new "Virš šilų" quarter. Investments in this area are not limited to the development of apartment buildings for residents - we are continuing to develop the commercial property project "Sky Office", where the first tenants will soon be able to move in," emphasizes K. Vanagas. Currently, "YIT Lietuva" is also building a large "Pon.Bike" bicycle factory in the Kėdainiai Free Economic Zone (LEZ), and a "Preses nama" multifunctional center in Riga. In Vilnius, the company implements the II stage of the reconstruction of "Erudita Lyceum", carries out the renovation of the business center Sporto St. construction works, and near Kaunas, "YIT Lietuva" started the construction of the "Urban HUB" business campus.