„Last year, as interest rates began to fall, the real estate market started to recover, and home purchases steadily increased. At the start of this year, the US president's decisions and rhetoric unsettled the geopolitical landscape and triggered a new wave of uncertainty. However, it had a less pronounced impact on the capital’s real estate market. According to data from the Centre of Registers, apartment sales in the capital increased by 44% in the first three months of this year, while only 7% of residents postponed their plans to purchase a home, according to the survey,“ said Mykolas Čiplys, Head of Sales and Rental at Darnu Group.
Both aesthetics and energy matter
Studies conducted over several years reveal that people's expectations for their first or new homes are consistently rising. In recent years, residents have repeatedly reported changes in their housing needs in terms of size, location, and price.
84% of respondents say they are thinking about buying a larger home than planned 2–3 years ago, 61% of Vilnius residents plan to purchase a home in a more prestigious location, and 52% would choose a more expensive home than originally planned.
At the same time, according to the survey, residents rate their current housing an average of 7.41 points. Residents are most dissatisfied with the small size of their homes (30%), energy efficiency that does not meet their expectations (29%), and poor sound insulation (29%).
„Among the biggest shortcomings of their homes, residents also cite the building's aesthetic environment (23%) and poor apartment layout (16%). All five of the attributes listed as dissatisfying are typical of older homes built during the Soviet era. It is no surprise that residents planning to purchase a home prioritize newly constructed properties,“ says Čiplys.
The majority (35%) of Vilnius residents would like to purchase a newly built home (2020–2025), while 13% say they plan to buy a home that has not been constructed yet, from blueprints. 34% plan to look for housing built between 2000 and 2019, while 18% of respondents are considering older properties.
According to the survey, 30% of residents will be looking for a home measuring between 61 and 80 square metres, making it the most popular choice. Slightly fewer (24%) future homeowners plan to purchase a home of 41–60 square metres, while 22% of respondents plan to buy a larger home, ranging from 81 to 100 square metres.
„Although price typically tops the list of the most important criteria when purchasing a home, residents are reluctant to compromise on overall quality. Newly built homes may offer better energy efficiency and layouts that are better suited to a modern lifestyle. These are key elements that residents often look for in their new homes,“ says Čiplys.
Usually plan to settle outside the city centre
According to the survey, Vilnius residents most often plan to buy homes in residential areas farther from the city centre. 39% of respondents stated this. Suburban living is the choice of 29% of respondents. 28% and 4% of respondents would like to buy a home in the central districts of the city and the Old Town, respectively.
According to Čiplys, this distribution is very natural and corresponds to urban development trends and the dynamics of supply and demand. The closer a location is to the centre, the fewer development opportunities builders have, resulting in fewer options for buyers due to both limited supply and higher property prices.
As indicated by Citify data, 27 real estate transactions were concluded in the Old Town during the first quarter of this year, where high-end housing is concentrated, at an average price of €5,800 per square metre. During the same period, for example, eight times more transactions were concluded in the Lazdynai district – 225 in total – at an average price of €4,200 per square metre.
Čiplys says that homes located a bit farther from the city centre are in demand due to changing buyer preferences. According to him, it is now also possible to offer a high quality of life in these areas, though with different attributes than in the city centre – privacy, abundant nature, tranquility, and a developing recreation and leisure infrastructure.
„Buyers want to live in high-quality housing and seek opportunities to combine the benefits of city life with the ability to escape its hustle and bustle and fast pace. As the city grows denser, achieving this balance is becoming increasingly difficult. As a result, many people are choosing to leave the city centre in favour of quieter environments. This trend is clearly illustrated by the Sakai district, which is emerging along the banks of the Neris River, near the Karoliniškės reserve. In the first quarter of this year, it became the most popular district in the capital, with 138 apartments sold. The key appeal for buyers was the project's location, which offers exceptional natural surroundings and is supported by developing recreational and leisure infrastructure,“ says the expert from Darnu Group.
The survey was conducted by Spinter Research on behalf of Darnu Group. The representative survey was completed by 512 Vilnius residents aged 18 to 75, all with a monthly income of at least €1,500 per family member.