Changes are driven by more favourable conditions for purchasing a housing property
Andrius Mikalauskas, Head of SBA Urban: „Recently, we have been observing a very active demand in the primary housing market of Kaunas. It is due to the growing population and the reduction of base interest rates for the third time this year. Residents actively seek new, modern housing for both living and investment. The market activity is evidenced by the demand for already built and ready-to-occupy housing and the reservations for newly launched projects“.
According to him, Kaunas is purposefully exploiting its strengths to attract growing businesses and residents. These include the high quality of services, the city's ever-improving connectivity and the speed of solutions. Also important is the future outlook – the city needs an urban development of its central districts that covers all real estate segments and offers the market viable mixed-use – residential and commercial – spaces. These areas would concentrate on essential services, making living and working close to each other.
Sold out projects and active reservations
The availability of high-quality new homes also drives the demand in the housing market. In Kaunas, on the left bank of the Nemunas River near the newly constructed bridge, the second stage of the Nemunaičiai development, the Pasaka project, has begun. As of October 3rd, with the start of reservations and the beginning of construction, 25% of the 95 apartments have already been reserved. By mid-October, the first stage of the Nemunaičiai, consisting of 169 apartments, was completely sold out.
Viktorija Pozingytė, Head of Sales of Nemunaičiai: „Residents looking for a new housing unit pay a lot of attention to the architecture and the surrounding infrastructure. In Kaunas, no new districts of the same scale as Nemunaičiai are close to the centre. Therefore, we feel a great demand – within three weeks, every fourth apartment in the new project, Pasaka, was reserved. One of the most important reasons we hear from those who are making reservations is the prospect of growing to a 6-hectare mixed-use district, which is becoming the new centre of Kaunas, especially with the connection between the left bank of the Nemunas River and the Nemunas island“.
She notes that after holding back for some time, residents have been waiting for new and promising residential projects with a wide range of apartments of different sizes, layouts and prices. As new offers become available, consumers are more confident in investing in real estate or improving their living conditions by moving closer to the city centre.
Pozingytė concludes: „As the market is filled with new and modern housing, it becomes appealing not only to Kaunas residents but also those who have long been looking for a reason to return to Kaunas and Lithuania. While some newcomers will return to Kaunas and Nemunaičiai after 10 years abroad, their neighbour is a Lithuanian living across the Atlantic who wants a comfortable permanent residence in Lithuania. Appealing real estate helps bring back even Lithuanians from abroad. It's also encouraging that people from Vilnius are choosing new housing in our development for living and investment“.
Currently, the most popular and actively reserved apartments are both larger, 2–3 room, 70–80 sqm apartments with a view of the Nemunas River, and smaller, two-room, up to 40 sqm apartments with a view of the courtyard and the green slopes of Aleksotas.
Works on the second stage in the Nemunaičiai area are gathering momentum. The preparatory construction works for the residential building Pasaka are completed, and the installation of the piles will begin this week. It is planned that the new residents will be able to move into their residences in the spring of 2026. The construction of the Hermanas business centre is also progressing, with the concreting of the first-floor columns and monolithic walls underway and preparations for installing the first-floor slabs. The business centre is scheduled to open in the fourth quarter of 2025.