Klaipėda’s Suburb Boom Ends – Old Town Revival on the Horizon
Real estate market participants interviewed by Vakarų ekspresas note that while the market isn’t particularly active this year, new trends are emerging. Interest in individual houses located in suburban areas around Klaipėda, such as Slengiai and its surroundings, is declining. Although a boom is predicted for Klaipėda’s Old Town property market, both buyers and sellers remain cautious for now.
“The popularity of suburban developments in Ginduliai and Slengiai is decreasing. The number of listings is rising, and more people are looking to move out,” observes Artūras Valaitis, head of real estate agency Memelhaus.
He notes that only a slight downward shift has been observed in prices for larger, older apartments in unrenovated buildings — mainly due to their high maintenance costs.
According to Valaitis, several reasons are behind these shifts: general market stagnation caused by high bank interest rates and ongoing uncertainty surrounding the war in Ukraine. Additionally, traffic congestion in Klaipėda’s outskirts during peak hours is making these areas less attractive.
“This year alone, house prices in some areas near Klaipėda have dropped by 5–10%, while prices within the city have remained stable,” Valaitis adds.
Nerijus Tilindis, one of the managers of Stemma Group, which is developing the Memelio miestas project, says that interest in the property is encouraging. Even though official sales and pricing announcements have yet to be made, conversations with potential residents are already active.
“Interested parties are quite diverse — both in terms of geography and age,” Tilindis reveals.
He confirms that many of those expressing interest currently live near Klaipėda and are either looking for a second home in the city or planning to return and live there permanently.
Memelio miestas emphasizes that it prioritizes residents who see the project as a place to live — not as an investment or rental property.
“We won’t include restrictions in the contracts, but our aim is to avoid a constant flow of strangers. We want the windows to stay lit,” says Tilindis.
From a rental perspective, the apartments in Memelio miestas aren’t particularly attractive in terms of return on investment. Although official pricing hasn’t been announced, it’s no longer a secret that fully finished apartments in the project are already reaching €8,000 per square meter — surpassing Klaipėda’s previous record holder, Smiltynės Kurhauzas, where prices reached €7,000 per sq. m.
Now, Mėmelio miestas is taking over the title of Klaipėda’s most expensive real estate project — albeit unofficially.
The high pricing is driven not only by the project’s uniqueness but also by the developer’s decision to keep nearly half of the 105 apartments in the first building for rental purposes.
According to Tilindis, these rental units are aimed at business clients, especially those leasing space in the future Hanza business center, also being developed within Mėmelio miestas.
New Supply in the Market
While Old Town’s revival is still anticipated, other segments of Klaipėda’s real estate market aren’t standing still.
In July, one project had a significant impact on Klaipėda’s primary apartment market — Mėnulio sodai.
Tomas Sovijus Kvainickas, Head of Investment and Analysis at the INREAL Group, told Vakarų ekspresas that the city’s new apartment market is small, meaning a single project can significantly affect the statistics.
Mėnulio sodai is part of the former Klaipėda State College dormitory on Jaunystės Street. It now houses 76 small, economy-class apartments.
According to INREAL data, 32 apartments were sold on the primary market in Klaipėda in July — 6.4 times more than in June and 45% more than in July of last year.
Thanks to Mėnulio sodai, Klaipėda now has the largest new apartment supply in the last three years — totaling 614 available units in July.
Moreover, apartment sales in the former dorm statistically reduced the average price of economy-segment housing by a quarter. In July, it dropped to €1,730 per sq. m — similar to a year ago, though in June the average in this segment was €2,300 per sq. m.
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