The fashion of buying apartments "from 2D plans" is fading
The trend in Western Europe to buy an apartment in an already built house instead of "from the blueprints" is gaining ground in Lithuania. People's interest in apartments in completed buildings is driven by both emotional reasons and rational factors. One of the newest rational factors are - the fluctuating real estate market and rising interest rates.
According to Edvinas Malevskis, CEO of real estate development company REWO, in economically strong countries such as Germany and the UK, more than half of the sold new real estate is already built before selling process.
"People in these countries spend a long time preparing for home ownership, especially for their first home, and when the time comes, they want to have everything here and now, rather than waiting for an indefinite period of time. Buying an already built property gives buyers the peace of mind that the project will not take too long, they do not have to wait until they can move in, and therefore they can plan their time and costs more accurately. In addition, they can clearly assess the solutions implemented, the quality of the construction, the materials used, the environment, and see if the apartment meets their expectations by physically visiting it", says E. Malevskis.
Testing the innovation in Vilnius
In Lithuania, the habits and needs of apartment buyers are also changing, and buyers are increasingly looking for apartments that they can furnish immediately and prepare for moving in. The opportunity to come to a completed property and experience it in person gives clarity and certainty about the property.
In our country, the practice of "build first, sell later" is still uncommon - the real estate market has long been dominated by the tendency to sell apartments "from the blueprints" and sometimes at a very early stage, when construction work had not even started. The first buyers bought the most attractive looking apartments on the paper, and once construction was over, buyers looking for an already built home were left with a choice of what was left.
Taking into account the market situation, REWO decided to try an innovation: the apartments of the Mo Garden project, started to be marketed after 85% of the construction was completed, when it was possible to view the completed apartments and only the environmental works were left to be done. Buyers could choose from already built A++ energy class apartments near the forest and ponds with spacious terraces. The first residents could move in before the summer once the apartments are fully furnished.
Benefits for both buyer and developer
Malevskis says the decision to build first and then sell was based on people's changing habits and willingness to try something new.
"This is a new practice in Lithuania, Mo Garden is one of the first, if not the first project on the market, where we started active sales only after building it. Of course, this increases the time to complete the project, but there are also advantages to this strategy, including reduced uncertainty. It is a win-win situation: the client sees and can evaluate the final product before he buys it, and we know exactly what costs we have incurred," says the REWO CEO.
In recent years, the country's real estate market has been slowing down, with a decrease in demand both in Vilnius and throughout Lithuania. Many factors, including rising inflation and interest rates, are influencing the longer decision-making time for buyers. On the other hand, according to the data of the Centre of Registers, housing is not getting cheaper soon.
According to E. Malevskis, in such a situation, certainty for buyers is highly important: 'We manage the risks throughout the construction process, but construction work can take even several months longer than planned, not because of us, but because of the third parties we are not always in a position to control. In this case, buyers not only lose time but also, in a way, money, which depreciates in the long term. Buying a home that has already been built has its advantages for both developers and buyers, and has a right to life".
Housing in the heart of nature that suit every need
MO Garden, a modern architecture block with the advantages of already built new housing, is being developed on a 2.5 hectare site next to Buivydiškės Ponds. The development, which is distinguished by its proximity to the ponds and the forest, is primarily aimed at people who want to live closer to nature, maintain an active lifestyle, but at the same time have good access to the city centre.
Functionally designed apartments have separate entrances, private yards, parking space and a storage room. The project will include building a park with spaces for children, residents' rest and community entertainment.
The apartments in the Mo Garden project on Mozūriškių Street are partially finished, but buyers can also choose to have them fully finished by REWO partners. In this case, the finishing project of each apartment is individually coordinated according to the buyer's needs and possibilities, so that people can furnish their home not according to a template, but exactly the way they want.
Currently, the first stage of Mo Garden has 60 built apartments with patios ranging from 57m² to 78m².
