This article was published in the news media.
Over the past five years, the average housing price in Uptown (Naujamiestis), a district of Vilnius, the capital of Lithuania, has increased by nearly 93%, surpassing the overall growth in Vilnius. This pace is determined by the clear vision – from an industrial past, it is moving towards a multifunctional center of the future, where business, living, and leisure spaces merge. This development is changing both the identity of the place and the strategies of investors.
According to Darius Žakaitis, head of Tech Zity, Uptown is one of the few places in the city where there are still large areas ready for transformation. Here, it is possible to create a modern, open, and harmonious city where not only projects but also identities are born.
"The change in Uptown is obvious. Abandoned areas are turning into vibrant neighborhoods. What looked like an urban eyesore yesterday is becoming a desirable address today. The demand for non-standard, distinctive spaces is huge, because businesses today are looking not only for square meters, but also for a meaningful context. This transformation will only intensify over the next 5-10 years," D. Žakaitis predicts.
According to him, today the district is still balancing between its industrial past and a modern city. On one hand, it is a desirable location where ambitious, creative people and organizations are concentrated, and on the other, there are wide roads filled with cars and old industrial infrastructure.
"Uptown still lacks smaller public spaces, cozy streets, small services, places to walk, talk, and relax. It also lacks multifunctionality, so that you can work, live, and raise children in one place. This is an inevitable direction of development, and Uptown is ready for it. We already have many of Lithuania's most successful global technology players here – step by step, it is turning into such a center," says D. Žakaitis.
One of the most prominent symbols of the future of Uptown is the 55,000 sq. m. Tech Zity Vilnius project, which is being developed in the former “Lelija” sewing factory complex and is set to become the largest technology and creative industries campus in Europe.
"We aim for it to become one of the central hubs of Uptown — a vibrant, multifunctional, 24/7 urban living center. It will be a place where business, technology, events, health, education, gastronomy, and childcare will coexist. The space will feature not only offices but also co-working areas, a conference center, restaurants, green areas, and co-living spaces. This will help neighborhoods to recover, gain a new identity, and build self-confidence," says D. Žakaitis.
Why housing in Uptown is becoming increasingly desirable
Until recently, most people viewed Uptown as a cheaper, less developed district. However, the growing infrastructure, particularly the concentration of technology companies, has shifted this perception – housing here is increasingly designed to appeal to young professionals working in this sector, says Gustas Germanavičius, head of InRento, a crowdfunding platform that finances real estate rental projects in Lithuania and abroad.
"In recent years, many buildings have been developed or renovated to offer small 2-3 room apartments or studios. Previously, such investments were driven by lower market prices compared to the Old Town. However, with the growth of new business centers and offices, the demand for housing is also growing," says G. Germanavičius.
The average price per square meter in the Uptown district has increased by 92.9% since August 2020, from EUR 2,361 to EUR 4,555, according to aruodas.lt, the largest real estate online marketplace in Lithuania. At the same time, the overall growth in Vilnius was 77.3%, from EUR 2,146 to EUR 3,806.
"Over the past five years, we have financed several dozen projects in Uptown district, with the portfolio concentration here reaching as much as 30% at one point. All of these projects were realised ahead of schedule, and investors received a higher return than initially planned," says G. Germanavičius.
However, according to G. Germanavičius, the best investments in this district have already been made, and now it is getting more difficult to find attractive opportunities here. On the other hand, the shortage of housing and the central location ensure liquidity, especially in certain parts of the district.
"The number of rental properties in Uptown is decreasing because more and more owners are choosing to live here themselves. In recent years, we have also seen that price fluctuations depend not so much on economic fluctuations as on market sentiment and supply. Currently, too little residential housing is being developed in Vilnius, while infrastructure congestion and traffic jams only increase people's desire to live in the city center. Algirdo and Vytenio streets have seen impressive demand in recent years – their liquidity can be compared to projects in the Old Town," emphasizes G. Germanavičius.
