March 19, 2014. Vilnius. Inreal and Nordea analysts state that the changes in demography scopes in the country are highly influenced by the trends of international and internal migration, which are particularly inclinable for the capital city today. Through the entire period of independence 25 to 35 year-old residents make up the majority of residents in Lithuania today, and only 27.5 percent of these residents have their own housing. In 2013, the purchasers of less expensive, economy class housing (up to LTL 325,000) were prevailing in the market of apartment houses in Vilnius – the majority of them were young families. They are granted more than a half of all housing loans.
In 2013, about 2,430 apartments were sold in the new construction apartment market in Vilnius, i.e. by 73 percent more than in 2012. The sales of new construction apartments with prices varying from 250 to 325 thousand Litas, have increased the most. The majority of them is 2-room or 3-room economy class apartments, which are usually purchased by young families, and 1-room or 1.5-room higher-class apartments, located closer to the centre, which are usually purchased for investment purposes. According to Arnoldas Antanavičius, the Head of Consulting and Analysis Department of Inreal, this trend signals about rapidly-recovering housing market in the capital city. The increase in transactions was highly influenced by a more active economy class segment and almost a double amount of less expensive housing purchasers (up to LTL 325,000). “The existing conjuncture of the market reflects the domination of economy class purchasers in the housing market in Vilnius. Mainly, there are young families, which, according to the data of Statistics of Lithuania, make up the majority of residents in the whole country, as well as the capital city, through the entire period of independence of Lithuania; therefore, the potential in the housing market is particularly high. However, one should remember that the latter category of purchasers is the most responsive to the possible external effects, thus the perspectives in the market should be assessed with a deliberate optimism”, – stated A. Antanavičius.
“According to the data of the Centre of Registers, barely 27.5 percent of 25-35 year-old residents have their own housing, and, according to the data of SoDra (The State Social Insurance Fund Board), nearly each fourth of them earn more than LTL 3.000 in a month (average in Lithuania – just 16 percent), therefore the majority of these residents not only wants but also can afford to purchase housing”, – stated Žygimantas Mauricas, the chief economist of Nordea Bank Lithuania. According to him, significantly positive trends are observed in Vilnius – the increasing amounts of internal migrants and returning emigrants resulted in a moderately increasing amount of 25-35 year-old residents from 2012 (it increased by 3.3 thousand just within 2013).
Ž. Mauricas notes that, at the demographical approach, it seems as if Lithuania consists of two countries: Vilnius and the remaining Lithuania. From 2003 through 2013, the population of 25-35 year olds has increased from 88 to 94 thousand in Vilnius, meanwhile the population in other four major cities of Lithuania (Kaunas, Klaipėda, Šiauliai and Panevėžys) has decreased from 109 to 82 thousand within the corresponding period. Thus, currently, the amount of 25-35 year-old residents in Vilnius is higher than in Kaunas, Klaipėda, Šiauliai and Panevėžys put together.
ABOUT COMPANIES
Inreal Group, consisting of JSC “Inreal GEO”, JSC “Inreal valdymas” and JSC “Inreal” , provides probably the widest spectrum of services in Lithuania, related to real estate. Inreal group companies belong to SC “Invalda privatus kapitalas”. About 90 employees are currently working in Inreal group; mediations in lease or sale of more than 550 thousand sq. m. of commercial premises, over 1000 residential housing objects, and over 200 land plots. The company mediates in 40 residential housing projects, 22 investment projects, and 2 investment RE portfolios. More than 2000 valuation reports and about 80 consultations (feasibility studies, investment memorandums, and market research) are being drawn up annually. The value of asset of valuation is above 2 milliard Litas. Company offices or representations are operating in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys, Mažeikiai, Alytus, Plungė and Utena. Currently JSC "Inreal Valdymas" develops two real estate projects: houses in Nida "Kopų vetrunges" ("Dunes weathervanes") and apartments and comercial premises in Klaipeda oldtown "Danes uzutekis" ("Danes Bay").
“Nordea Bank Lithuania” belongs to the largest financial services group in Northern Europe. In 2012 “Nordea” was awarded the best bank in Western Europe (The Banker, Financial Times). “Nordea” ranks 20th in the World’s 50 Safest Banks ranking. “Standard & Poor's” rating agency has affirmed Nordea’s AA- rating.
“Nordea” started its operations in Lithuania in 2000. Currently, “Nordea” ranks number four among Lithuanian banks in terms of assets under management and is one of the fastest growing banks providing all main banking services to private and corporate customers. In the corporate customer segment, “Nordea Bank Lithuania” is known as a financial supporter of large projects providing a wide range of individual services for corporate customers.
More information:
Rūta Merčaitienė
INREAL GRUPĖ
Head of marketing and communication
Mob. +370 611 29779
ruta.mercaitiene@inreal.lt