EUR 8.2 million paid for the most expensive apartments in Kaunas during H1, and four times less in Klaipėda

An overview of the developments in the most expensive residential housing segments in the three largest cities in Lithuania showed that Kaunas is steadily catching up with the capital. The most recent study of the luxury housing market in Vilnius, Kaunas and Klaipėda concluded that just like in the capital, the volumes of expensive housing acquired in Kaunas and the amounts paid were growing consistently. In the meantime, Klaipėda has been recording only some sporadic leaps in recorded deals.

Part of the survey was a selection and an analysis of all the registered deals for old and new construction apartments concluded in Kaunas and Klaipėda during the period concerned (H2 2017-H1 2018) and for which the acquisition price per square meter exceeded EUR 1,800 (having deducted from the total transaction the price of the car park lots, warehouses or other accessories).

The results of the survey showed a consistent increase in the number and the value of the deals in Kaunas during 2017–2018. According to the data of Ober-House, during H1 2017, 39 apartments (with prices per square meter exceeding EUR 1,800) were purchased, against 40 such apartments purchased in H2 2017, and 55 during H2 2018;

The amounts paid for the purchases were increasing accordingly. According to the estimates of Ober-Haus, EUR 6.77 million waspaid for luxury housing purchased during H1 2017 (39 apartments and accessories), EUR 7.15 million (40 apartments and accessories) and EUR 8.16 million (55 apartments and accessories) respectively in H2 2017 and H1 2018.

However, the largest movement in the sale volume in luxury residential housing segment is evident in Kaunas when comparing the indicators of 2017–2018 with those of 2016. ‘Just to compare, as few as 12 such apartments were acquired in Kaunas during 2016 for the total value of EUR 1.7 million. Thus, the trends in Kaunas are more than evident and clearly demonstrate that for now there is no shortage of those able and willing to acquire more expensive housing’ – says Raimondas Reginis, Research Manager for the Baltics of Ober-Haus.

H2 2017 and H1 2018 in Kaunas were notable not only for the number of purchase deals, but also in terms of prices. The highest price per square meter recorded in 2016 and H1 2017 was EUR 2,400, while in H2 2017 and H1 2018 the same indicator was approaching EUR 2,800.

In terms of price per square meter the most expensive apartments in H2 2017 and H1 2018 in Kaunas were sold in the newly delivered multi-apartment unit. The most expensive apartment in terms of square meter price in Kaunas was sold in mid-2018 – a 74 sq.m apartment in a new construction project at Kumelių St. (Old Town) was purchased for EUR 210,000 (EUR 2,800/sq.m.).

During the period being surveyed, two new construction projects in Kaunas stood out for the largest number of purchased luxury-class apartments. During the period, 32 apartments with prices in excess of EUR 1,800/sq.m were sold in Piliamiestis quarter at Brastos St. in which the construction works started in 2015. The price per square meter for the most expensive apartments on the upper floors or larger in area was between EUR 2,400 and 2,650. The second project distinguished for the number of expensive apartments sold was a multi-apartment project ‘Ąžuolyno namai’. The project was completed at the beginning of the year and 19 apartments, each priced at more than EUR 1,800 per sq.m, were sold in the quarter during the period surveyed. The price of the most expensive apartments was EUR 2,200–2,450.

Just like in the capital of the country, the volumes of new construction projects in the central part of Kaunas, also the Old Town and Žaliakalnis were growing rapidly, as were the numbers of apartments sold in new buildings. According to Ober-Haus estimates, 84 per cent of the 95 most expensive flats sold during H2 2017 and H1 2018 were located in new residential quarters (built in 2016-2018). In Vilnius the same indicator was 60 per cent.

‘While in Kaunas the new construction housing has been fairly attractive to well-off buyers, just a few apartments exceeding EUR 1,800/sq.m were sold in old construction buildings, for instance, in historical buildings located in the most expensive parts of the city’ – says Raimondas Reginis.

‘Meanwhile in Klaipėda only some instant spikes in the number of transactions in the most expensive apartment segment were recorded in view of the several newly completed high end residential housing projects, while the overall trends in the segment have remained unchanged’, says Reginis. During H1 2017, 10 apartments were purchased in the expensive residential sector (with a price in excess of EUR 1,800/sq.m.) during H2 2017 29 such apartments were purchased, but in H1 2018 the volumes fell back to the previous levels, when only 11 such apartments were sold in Klaipėda.

Comparable trends were observable in terms of the money spent to acquire housing. According to the estimates of Ober-Haus, EUR 1.72 million were paid for luxury housing purchased during H1 2017 (10 apartments and accessories), EUR 4.53 million and EUR 1.96 million was paid for luxury residential housing respectively in H2 2017 and H1 2018.

‘While the volumes of deals in luxury category apartments in Klaipėda remain moderate as compared to Kaunas, the prices of the most luxurious apartments exceed EUR 3,000/sq.m, which is higher than the prices of the most expensive square metres in Kaunas’, – says Reginis.

Leading position among the most expensive housing on the market in Klaipėda is still retained by K ir D, a 20-storey commercial and residential building originally launched in 2006 and located at Naujojo Sodo St. Two particularly expensive apartments (in terms of a square meter price) were sold during the period surveyed; EUR 237,000 (nearly EUR 3,400/sq.m) was paid for the apartment – with an area of just over 70 sq.m – located on one of the top floors of the building, and EUR 590,000 was paid for another apartment also located on the top floor of the building and just over 200 sq.m in area (nearly EUR 3,000/sq.m). Another apartment which featured in the luxury sector was a 110 sq.m apartment with car parking which was sold for more than EUR 390,000 (about EUR 3,000 per square meter) in a multi apartment house at Ligoninės St. that was started to be built in 2009.

In terms of the number of the most expensive apartments sold in Klaipėda during the period being surveyed, two new construction buildings in which the largest number of flats was sold should be noted. Altogether 13 apartments were sold in the block of semi-detached houses and apartments ‘Kopų žuvėdra’ near the Baltic Sea (in Giruliai) completed in 2016-2017; the price of the apartments exceeded EUR 1,800/sq.m. The price of the most expensive units in the block was EUR 2,300–2,400/sq.m. The second project in Klaipėda that should be noted for the number of apartments sold was the ‘Dangės krantinė’ project refurbished and restored in the Old Town of Klaipėda in 2017. During the period being surveyed 10 apartments and recreational facilities exceeding EUR 1,800/sq.m were sold in the project. The price of the most expensive flats was EUR 2,500-2,700/sq.m.

‘Most probably in the foreseeable future we will see some isolated spikes in the volumes of most expensive housing purchase deals, as the number of new luxury project constructions in the city are still moderate as compared to Vilnius or Kaunas. The supply of old-construction luxury housing in Klaipėda, just like in Kaunas is particularly limited, so a well-off buyer looking for luxury is more likely to wait for new housing in the newly built and planned development projects in the central part of the city, the Old Town and other desirable areas of the city. The deals already concluded clearly show that there are people in Lithuania who can afford buying more expensive housing, so in the near future we can expect to see more deals of similar value’, – says Reginis.