Centre of Registers: in 5 years, apartments in the capital have risen almost one and a half times

Over the last five years, not only the number of apartments built and sold in Vilnius city has increased, but also their prices. Apartments in the capital have become an attractive investment, more and more people have sought and purchased a second or third home, and in response to demand, real estate developers have put new projects on the market. Analysts of the Centre of Registers analysing the dynamics of registered apartment transactions note that in the last 5 years apartment prices in Vilnius have increased on average almost one and a half times.

"Recently, the prices of apartments in Vilnius city have consistently increased – the average annual price growth was about 7 percent. This means that compared to 2016, buyers currently pay about a 40% higher price for an apartment. Of course, Vilnius City Municipality is not homogeneous, it consists of 21 elderships, which have their own specific apartment market, development potential and different preferences of buyers. For this reason, both the average sale price of apartments and the dynamics of average prices for the period under consideration differ in individual elderships," says Paulius Rudzkis, data analyst at the Centre of Registers.

Currently, the lowest prices of apartments of older construction (those when the transaction was concluded 2 or more years after the completion of construction) in the capital are recorded in the elderships of Paneriai, Naujoji Vilnia and Grigiškiai – here the average prices of apartments of older construction reach about 1.2 thousand. per sq. m. meter and is 35-45% lower than the average for the whole of Vilnius.

The following districts can also be attributed to lower apartment prices: Naujaininkai, Viršuliškės, Vilkpėė, Šeškė, Pašilaičiai, Lazdynai, Karoliniškės, Justiniškė or Fabijoniškės, where apartment prices currently fluctuate around 1.5 thousand. Eur 100 million per sq. m. meter, or 15-20% below average.

More expensive apartments can currently be found in Šnipiškės, Antakalnis or Žirmūnai, where the average price of an apartment will already reach about 2 thousand. Eur 100 million per sq. m. Meter. Well, the highest prices this year are recorded in older-build apartments sold in the Old Town, The New Town or the Beast, where prices fluctuate around 2.4-3 thousand. Eur 100 million per sq. m. meter and is 30-70% above average.

Older construction apartments were most expensive in the New Town, Old Town, Šnipiškės and Žirmūnai

In the last five years, the prices of older construction apartments in Vilnius city have increased from 40 to 70 percent.

"The biggest increase in the prices of apartments of older construction was in those areas of the capital where the most changes have occurred in the last few years – new apartment buildings have been built, which in themselves have also raised the prices of older apartments, the infrastructure has been updated, which has attracted apartment buyers to the eldership. The smallest change in prices can be seen in sleeping areas, where apartments of older construction are structurally dominated, so the large supply and relatively less interest of buyers, naturally, do not exert such a big pressure on price growth," says P. Rudzkis, data analyst at the Center of Registers.

According to the Data of the Centre of Registers, the fastest growth in prices for apartments of older construction is recorded in the elderships of Naujamiestis, Old Town, Spyiškiai and Žirmūnai, where prices have increased by about 63-67 per cent in the last 5 years.

A slightly more modest price increase was recorded in the elderships of Naujoji Vilnia, Lazdynai, Karoliniškės, Naujaininkai, Grigiškiai, Vilkpedė, Šeškinė and Paneriai – in these districts, the prices of apartments of older construction increased from 50 to 60 percent in 5 years. Well, the relatively modest price growth was in pašilaičiai, Verkiai, Justiniškiai, Pilaitė, Žvėrynas, Fabijoniškės, Viršuliškės and Antakalnis elderships, where apartments of older construction increased by 40-45 percent in five years.

Šnipiškės and Žirmūnai stand out in the market of new apartments

The price dynamics of new-build apartments in individual neighbourhoods of Vilnius are even more diverse, and the most pronounced changes were also observed in Šnipiškiai and Žirmūnai districts.

"New-build apartment projects in the capital are usually developed where they have the greatest payback and interest from potential buyers. For this reason, less than half of all vilnius elderships were used for price analysis, since in others the annual number of new construction apartment transactions is insufficient to carry out statistical analysis. Nevertheless, the data of the analyzed elderships show that the leaders in terms of price growth are spyiškiai and Žirmūnai elderships," says P. Rudzkis.

In the last 5 years, the prices of new-build apartments, i.e. those whose purchase and sale transaction took place no more than 2 years after the completion of construction, have risen from 25 to 45 percent in the analyzed neighbourhoods of Vilnius city.

The fastest price growth was recorded in šnipiškiai and Žirmūnai neighbourhoods, where the prices of new apartments increased by 40-45 percent. At a slightly slower pace (31-35 per cent), new apartments were expensive in Justiniškiai, Lazdynai and New Town neighbourhoods, while relatively the lowest price growth was recorded in the wards of New Vilnia, Pašilaičiai, Pilaitė and Old Town (25-30 per cent).

Source: State Enterprise Centre of Registers (registrucentras.lt)