In Southern Vilnius the first changes can already be seen – the transport infrastructure is expanding, shopping and business centres are emerging. But is it simply separate events or do they signal about a broader tendency – a rapid development of Southern Vilnius in the nearest future? Real estate experts and businessmen who chose Southern Vilnius to develop their projects share their thoughts on what encourages businesses to establish themselves here and what will happen in this district.
Real Estate experts draw attractive perspectives to Southern Vilnius
The perspectives of Southern Vilnius development are highly positive, says Mantas Miseliunas, “Koba Living” Investment and Rental Department director. The growth of popularity of Southern part of the city is also seen by Real Estate company‘s “Ober-Haus” Evaluation and Market Research director Saulius Vagonis.
But this process is seen differently by both of them – according to Mr. Miseliunas, the perspectives of Southern part of the city are linked to commercial areas development, while Mr. Vagonis believes the evolution of Southern Vilnius will be determined by the fact whether the residents number will grow in this area or not.
Mr. Miseliunas says in Southern Vilnius there are many suitable spaces for multifunctional offices, storage or sports complexes. For the light industry‘s development, proper district‘s infrastructure and logistics have been prepared. Although he maintains the view that despite the lower prices than in the other districts the development perspectives of residential areas are being limited by the fact they are close to the railroad and the airport. That is why, according to the expert, several new residential houses projects in these districts and beyond could appear, but it is unlikely they would be very big.
There are plenty opportunities to develop commercial objects in Vilnius‘ South, says Mr. Miseliunas. ‘The transport infrastructure is good, it is close to the centre of the town. From Southern Vilnius to the centre the distance is half the distance than from the Northern Vilnius areas and the roads are not overcrowded. One more merit that business would get if established in this district – relatively lower price of rent for commercial areas and it should stay lower than in the Central or Northern parts of the city in the forthcoming future”, – assumes Mr. Miseliunas, laying out the benefits of Southern Vilnius.
Meanwhile, Mr. Vagonis insists the development perspectives of Southern Vilnius are linked to residents that are moving to this part of the city. He also reminds that 15 years ago Southern Vilnius was a place with no importance whatsoever: seen as an industry area, related to factories, airport and noise. The biggest part of those who are moving to this side of Vilnius consisted of former other cities‘ residents, which did not have this type of stereotypes shaped unlike the Vilnius‘ residents, and enjoyed relatively small housing price as well as short distance to the centre. But now the residents of Vilnius are moving to Southern part of the city and the area is becoming more and more popular.
Mr. Vagonis insists that if the number of residents will grow, the industry will gradually decrease, pollution and noise will decline, more businessmen will see the need to establish themselves in Southern Vilnius.
“In this way more businesses offering a variety of services will emerge. It is likely that more shopping centres will appear, although I do not think they will be as big as IKEA or NØRDIKA. All of these processes will have to go at the same time – the moving of residents, establishment of business, infrastructure. Several years ago we did not have these kind of processes, but now we do. They should last in the future as well, because the place of the district is good and exploited incompletely“, says Mr. Vagonis.
Most important – good transport infrastructure
There are already some businesses established – the representatives of “Porsche” salon, hotel “IbisStyles Vilnius” and NØRDIKA shopping valley say that the decision to emerge in Vilnius‘ South was determined by an attractive infrastructure of transport.
One of the newest business development examples in Southern Vilnius – “Porsche” salon. According to the official representative in Lithuania “Prime Auto” director Oleg Martyniuk, the company thought about the clients when it was deciding where to settle down.
“The place we have chosen is in a very convenient position strategically. First of all – because of the airport nearby: most of our current clients are businessmen, they tend to fly to foreign countries quite often, that is why they feel comfortable about leaving their car for technical services on the way to the airport, and take it back after their return. Moreover, this place is near the Southern bypass, and that is good both for Vilnius residents, because the connection through bypasses is very satisfactory, and for the clients coming from different cities or from Minsk side”, – says Mr. Martyniuk.
According to “Prime Auto” director, Southern district of Vilnius has always been perspective, because the airport nearby is of strategic importance, important location of tourism and logistics. He notes that the opening of the southern bypass, which improved the transport situation was really significant for this part of the city.
“This place is convenient for businesses which require a bigger space, good logistic connection with the main roads to other country’s cities or with the direction of Minsk. District’s perspectives are also greatly demonstrated by the ongoing processes: without “Porsche” center, IKEA emerged here which is now a district’s center of attraction. It also attracts other investors – in the plot nearby a shopping valley NØRDIKA is emerging, a little further big Maxima shopping centre was opened, skiing track of Liepkalnis saw a significant expansion“, – marks Mr. Martyniuk.
On September 24 one more huge object will open its doors – shopping valley NØRDIKA, which will establish itself near IKEA shopping centre. According to the investor to the shopping valley Peter Morris, the location is picked out seeking to allow the Vilnius residents to come and shop comfortably, without traffic jams.
“In Western Europe it is common to go shopping outside the city because the arrival to this kind of shopping centre is much more convenient. Southern Vilnius is the best place for that because of very comfortable transport infrastructure. Moreover, in order to have the maximum comfort we will build very large parking lots with wide parking spaces for automobiles“, says Mr. Morris.
Inga Grajauskienė, General Manager of the hotel “IbisStyles Vilnius”, which opened its doors in the Southern Vilnius in 2013 under the name “Campanile” also notices that this Vilnius part was chosen because of the location. She notes that the place is attractive for tourists from Belarus, besides, foreign tourists often pick the hotel because of its closeness to the airport.
Ms. Grajauskienė believes that the Southern Vilnius is very perspective both for business developing and for residential areas expansion because of its geographical location.
“This district is very close to Vilnius Old Town and the central part – from our hotel you can reach the Gate of Dawn in 5 minutes. The bypass makes the accessibility to all directions. Furthermore, one of the biggest parks of Vilnius is here – Pavilnių regional park with spectacular nature. New business and shopping centres, Liepkalnis park infrastructure development will certainly increase the need for services“, – says director of the hotel.