KLAIPĖDA REAL ESTATE MARKET
Therefore the environment will be more favourable for investments in this segment. In 2015, increasing vacancies were observed in warehousing lease segment in the largest cities of the country. Vilnius has maintained a stable level of vacant premises only, despite the fact that two new logistics centres, which added 14,000 sq.m. GLA, were opened in Vilnius in 2015. Vacancy rates in Kaunas and Klaipėda have become worse. There were about 6,330 sq.m of modern warehousing premises vacated in the logistics centre Kaunas Terminal, which is located in the free economic area. Several modern logistics centres offered vacant premises in Klaipėda market. Taking into account the fact that 2 modern logistics centres were being built in Klaipėda and they will supply the market with up to 29,000 sq.m GLA, i.e. up to 24 percent of the entire supply of logistics centres in Klaipėda, it can be expected that the vacancy rate will also be higher in 2016 than in 2015. This, in turn, will increase the pressure on warehouse lessees and impede the expansion of logistics centres.
In late 2015, the expectations in the industry sector were deteriorating. In late 2015, worse expectations could have been influenced by declining growth of industry output. Analysing the results of industry survey on the exports for the upcoming three months, it is possible to state that the situation in late 2015 is assessed quite negatively. Many representatives have already changed their expectations related to exports growth, while the level of reserves is assessed as sufficient, meaning that the representatives are unlikely to increase their outputs in the near future.
The forecasted period of stabilisation in the industrial segment should affect the warehousing market adequately – the demand for new leasable premises or build to suit objects will likely be decreasing.
In 2015, the number of purchase-sale transactions was decreasing in all segments in Klaipėda real estate market. When analysing the trends of purchase-sale transactions in different segments of Klaipėda market in 2015, it is possible to distinguish the private house segment of Klaipėda region. Although the end of the year showed record-breaking activity, it is possible to assume that the activity “ceiling” has not been reached yet, therefore, in 2016, the private house segment of Klaipėda region should be more active than in 2015. Regardless of high demand, the market is permanently supplied with new objects, therefore the prices of private houses are not increasing. In 2015, only the prices of old-construction apartments were growing in Klaipėda – by 5-6 percent at an average.
In 2015, the developers sold about 210 new-construction apartments in Klaipėda, i.e. by 27.3 percent less than in the previous year. Therefore, there is no surprise that investors are not very active in developing new projects – in 2015, the market was supplied with 176 new apartments, i.e. by 32.8 less than in 2014.
Economic-class apartments were the most popular in Klaipėda market. Respectively, the sales in this segment have made up the major share of the overall sales. In 2015, the prices of new-construction apartments in Klaipėda were different from those in other cities:
- the average price of economic-class apartments was 1,162 EUR/sq.m. and had not changed in a
- the average price of luxury-class apartments was 1,950 EUR/sq.m. and decreased by 1 percent in a year.https://www.lb.lt/macroeconomic_forecast
Insignificant changes in new-construction apartment prices are possible due to the changing structure of apartment supply. However, poor liquidity of apartments does not allow expecting prices to grow – they will likely remain stable in 2016.
The development of new business centres still remains sluggish. Meanwhile, no new business centres were opened in Klaipėda in 2015. It is planned to open one small (2,500 sq.m) office building in 2016.
In 2015, the lease prices have remained stable in the largest cities, because the increasing demand in Vilnius is satisfied by the development of new business centres, meanwhile, the lease of modern offices in Kaunas and Klaipėda has not become active yet.
Supply of vacant modern offices in Klaipeda 2016 - about 63.000 m2.
A more rapid pace of real estate development sector, the lack of major domestic and foreign enterprises in the development, since it is such a company is able to pay the rent for the modern needs of the new premises. And small and medium-sized enterprises tend to congregate in old buildings located in the premises of the rental price does not exceed EUR 5-6 / m2.
Source: Statistics Lithuania, 2015, Verslo zinios annual survey 2015, Invest Lithuania data, Versli Lietuva regional data, Lithuania economic review 2016, Lithuania bank calculation, „In Real“ 2015-2016 Lithuanian economic and RE market report