September 13, 2018. Vilnius. The New Centre of Vilnius celebrated its “adulthood” with 18 business centres and 15 new residential buildings, where a territory of nearly 480 thousand sq.m of real estate (RE) has been expanded since 2000. It was the most rapidly growing territory in the capital city, which is still growing and where a density encourages further geographical expansion.
Commercial RE development
The history of the New Centre of Vilnius City (hereinafter – NMC) started in 2000, when the construction works of the first large business centres were launched on the right bank of the river Neris. The first buildings, which have started to form the new business area, were “Geležinio Vilko” (“Pieštukas”) and IBC business centres. In 2002, some part of Ukmergės street was renamed into Konstitucijos prospectus, and in 2004 as a result of high vehicle and pedestrian traffic the street was widened and got its current shape. Soon Vilnius City Municipality, the Business and Commerce Centre “Europa” and the European Square were established there. These projects gave an impetus for further expansion of the territory. The new business centres and headquarters of banks were growing one after another. The global financial crisis has slowed down the accelerated development of NMC for several years. The construction was revived only in 2012-2013 and has continued intensively so far.
When Konstitucijos prospectus has got a large density of buildings, the geographical expansion of NMC was started; currently it covers Saltoniškių, Žalgirio, and Rinktinės streets. The second stage of expansion included such exclusive business centres like “Baltic hearts”, “K29”, “Quadrum”, “Green hall 2” etc., which were awarded in the fields of real estate and architecture. In 18 years the area of over 370 thousand sq.m of commercial RE was developed in Vilnius NMC. The expansion continues actively – currently started projects will soon be complemented by the construction of at least another 14 business centres. They will complement NMC territory by about 220 thousand sq.m. “It is likely that in the near future we will see the development of even more projects, since NMC territory has several large land plots suitable for development or objects for conversion, where construction of different purpose objects is possible”, – stated Robertas Žulpa, the Analyst of INREAL.
In recent years, NMC has had intense development of hotels. In 2018, there were three chain hotels opened in this territory: “Courtyard by Marriott” (199 rooms), “Ibis Vilnius Centre” (164 rooms) and “Radisson Blu Hotel Lietuva” (165 rooms). Currently, “DoubleTree by Hilton” (174 rooms) hotel is being built on Rinktinės street. “k18B” complex with “Radisson Red” (210 rooms) hotel is being designed for the development of Konstitucijos prospectus.
Residential RE and infrastructure development
Not only commercial but also residential real estate is being developed in Vilnius NMC. According to R. Žulpa, Šnipiškės, which was called the “Shanghai” of the capital city, has become unrecognisable. Since 2000, at least 15 residential building projects have been developed here – the area of almost 108 thousand sq.m residential premises built. “In the beginning it was hard for Šnipiškės projects to find their place in the primary market of residential housing, and currently they are on the winning side in the competitive battle being able to offer an exclusively good location-quality-price ratio. Currently, there are at least 14 housing projects being built or will be launched soon in Šnipiškės”, – stated the analyst.
Public infrastructure is also being managed actively in NMC. It is intended to adapt the valley of the old riverbed of the Neris for recreation and active leisure. There will be cycling routes connecting Ozo street and Konstitucijos prospectus, pedestrian paths paved and landscaping organized. It is planned to renovate the valley of the old riverbed of the Neris by the end of 2018, and to manage the cycling route system by 2020. The abandoned territory between Lvovo and Geležinio vilko streets will become the Japanese garden with a lake in the city centre. The pedestrian promenade is being established in the territory of former stadium “Žalgiris”. In accordance with the design, the project will combine the solutions related to water, illumination, landscaping and recreational infrastructure. The renovation of Kernavės, Giedraičių and Daugėliškio streets is planned in order to achieve better integration of Šnipiškės neighbourhood into NMC and interconnect the surrounding streets by asphalted roads. The new Kernavės street, which will connect Lvovo street to Žalgirio street, should have three traffic lanes and a separate cycling path. The expected length of the street is about 680 metres and it will include 5 bus stops for public transport. Public spaces, green areas and modern traffic safety measures are planned on the both sides of Giedraičių street. The reconstruction of carriage way, sidewalks, lighting, and engineering networks is planned on Daugėliškio street.
New centres in Riga and Tallinn
The new centre of Riga is on the right bank of the Daugava river, a little further from the old town of the city. The expansion of the new centre has started in Skanste territory with an area of 24.5 ha. When Riga Arena was opened in 2006, not only local companies but also international businesses were created here. This is a place with the highest concentration of business centres in the capital city of Latvia, which is still growing. In mid-2017, this part of the city was complemented by a modern business centre “Place Eleven” (24 thousand sq.m). In 2020, it is expected to finish the first stage of “New Hanza”, which will add 21.3 thousand sq.m area; meanwhile the entire complex with an area of 340 sq.m is expected to be finished by 2033. The complex will consist of the commercial building, hotel, conference hall, and residential buildings.
Ülemiste City – the new centre of Tallinn – is located at a distance from the old town, in a strategically convenient location, near Tallinn-Tartu and Tallinn-Saint Peterborough highways. The development of 36 ha territory started in 2005, when it was decided that the city needs a centre for the establishment of advanced business companies. Currently, the territory already has modern premises for businesses (81 thousand sq.m area) and industrial buildings (120 sq.m area). It is expected that GLA for businesses will reach about 200 thousand sq.m, and 125 thousand sq.m for residential premises by 2025.
ABOUT INREAL
INREAL is a trademark of an idea, which gives spark to unique projects, basis for professional services, and added value to businesses, clients, and partners. INREAL positions creativity as a core value in the dynamic business world. INREAL Group, which consists of: UAB “Inreal valdymas”, UAB “Inreal”, and UAB “Inreal GEO”, provides probably the widest range of real estate services in Lithuania. Currently they have over 90 employees working for them in 11 cities in Lithuania. The company has engaged in business operations for over 20 years and implemented more than 50 real estate projects of various purposes, which received recognition and awards at contests not only in Lithuania but on an international scale as well. In 2015/16, 2016/17 and 2017/18 Inreal Group was named as the National Winner during the prestigious European Business Awards.
More information:
Rūta Merčaitienė,
Head of Marketing and Communication at INREAL GROUP
+370 611 29 779 ruta.mercaitiene@inreal.lt
www.inreal.lt