Last year, one of the largest real estate development companies in Lithuania, Realco, reported the greatest number of its apartment sales in the country’s capital as usual. However, a high level of buyer activity was also observed in Šventoji. A total of 264 new apartments from the company’s portfolio found their new owners.
The stock of new apartments got smaller
Last year, Realco finalized construction in the residential project Žvėryno Panoramos where the company generated the greatest number of its apartment sales totalling 117. The company’s apartment portfolio in this project included as many as 406 new apartments offered to the market with only 17 left to sell.
Wrapping up of the construction and sales in the third phase of the Linkmenų Ežerai project marked the end of the development of the entire residential complex. The new gated multi-apartment complex located in Šnipiškės is now home to 840 new residents.
Last October, the company launched the sales of its apartments in the newly developed residential complexes 7 Vakarai in Pašilaičiai, and Prie Vilnelės in Markučiai. A total of 57 apartments were realized in these projects.
While the 2020 may have felt like a roller coaster for Vilnius residential property market, the last quarter showed positive trends for the market players. More than 5,000 apartments were realized in the capital city last year. Meanwhile, the demand outpaced the supply which totalled 4,700 new apartments last year.
“Last year, following an intense start to the year, the real estate market was overshadowed by dark clouds for a while due to the coronavirus pandemic, and the housing market activity almost ground to a halt during the first lockdown. As the uncertainties loomed on the horizon, the general housing demand shrank several times: in April and May of 2020 it fell below the monthly average of 100 apartments. However, starting from June last year, the housing sales sky-rocketed again, and in December they reached all-time high with more than 700 new apartments sold in Vilnius in the last month,” Realco’s CEO Julius Dovidonis said.
Success in the coastal region
The expansion of Realco’s geographical reach, i. e. its decision to invest in the Šventosios Vartai project, has proved to be a success. While active sales were only launched in May, the seafront residential complex built in Šventoji generated 64 apartment sales in 2020, which account for two thirds of the housing units in this project. According to Mr. Dovidonis, the result has exceeded their expectations for several reasons.
“First, when the Covid-19 pandemic struck, the buyers’ interest in second (vacation) homes in the coastal region intensified. Second, both our company in its initial efforts to develop Šventosios Vartai project, and prospective or actual buyers of such housing see this property in Šventoji as smart investment,” Realco’s CEO explained pointing out that buyers’ interest in the project has not yet shown downward trends; on the contrary, even greater buyer activity has been observed during the second lockdown.
The most popular housing units in the completed Šventosios Vartai residential complex are 50 to 60 square metre apartments. Also, buyers prefer fully furnished apartments ready for living. To meet these buyers’ needs, Realco has offered them fully furnished apartments equipped with everything from furniture down to small accessories including toothbrushes.
Development in the capital will strengthen the company’s position
Besides the new projects Prie Vilnelės and 7 Vakarai in development, this year Realco is set to launch two new projects for the residential housing market of Vilnius, namely Algirdo 3 and GO Life in the intersection of V. Gerulaičio and Ozo Streets. The company expects to offer more than 850 new mid-range or high-end apartments in 2021. The total apartment portfolio of Realco’s projects in different parts of Vilnius will reach the company’s all-time high this year.
The company expects to strengthen its position in the commercial real estate market by developing its 15-storey business centre Hero with a total floor area of nearly 30,000 square metres to be situated at Lvovo Street in the capital city of Lithuania. This business centre designed by Cloud Architektai along with architect Edmundas Stasiulis will be the first building in the country to seek the international WELL Building Certification and will be constructed in accordance with the BREEAM Excellent requirements for sustainable buildings.
The company expects to make €22 million investment in 2021, five times more compared to the last year (€18 million).