An expert explains how not to be misled when choosing a home: reveals a trick often used by developers
"Location, location, and once again – location" is a well-known principle when it comes to real estate. However, according to Paulius Šatikas, head of the real estate development and management company Resolution, it’s important to understand that not all developers apply this principle with integrity. Popular, prestigious, and well-known city areas are often used as a justification to raise housing prices.
“We often joke that every apartment listed in Vilnius is in the Old Town, and in Palanga — it’s always ‘100 meters from the sea’. But similar trends are present not only in the secondary market — new real estate developers also try to capitalize on well-known names,” says Paulius Šatikas, CEO of Resolution.
According to the expert, this becomes evident when looking at the names of new projects: popular district names are frequently used, even though prospective buyers may find the actual property located far from the area referenced in the title.
“We’ve seen some striking examples: projects named after Žvėrynas being built in Šeškinė, or developments using the name Užupis while having nothing in common with the bohemian charm of that district.”
The reason is fairly straightforward: a prestigious district name doesn’t just draw attention — it can directly increase a project’s market value, making it easier, faster, and more expensive to sell. “But perhaps we as a society and a market have matured enough to talk about this openly? This is nothing more than misleading customers — it’s a sign of disrespect,” Šatikas says.
In his view, an attractive name and associations with a prestigious location can inflate a project’s value by as much as 10–15%. This is due to the so-called “halo effect” — a phenomenon where positive associations with something familiar or admired are transferred onto a related object or service.
Young people, newcomers to Vilnius, and those with little homebuying experience are particularly vulnerable to this type of manipulation. For them, a misleading project name could influence one of the most important and costly purchases of their lives — and lead to disappointment when the reality doesn’t match expectations.
“It’s completely understandable that this causes frustration. In Paris, where community engagement and protest culture are stronger, misleading project names caused such public dissatisfaction that proposals were brought before the city council to restrict the use of place names based on clearly defined geographic boundaries. Ideally, Lithuania shouldn’t have to go down that path — common sense should be enough,” Šatikas adds.
In Vilnius, there are only a few districts truly considered prestigious: Žvėrynas, the Old Town, Užupis, Valakampiai, and the old part of Antakalnis. These areas are in high demand, and property prices here are uniquely high.
“This is not just because of their rich histories, but also due to the quality of life they offer: unique architecture, low building heights, relatively low development density, and natural green surroundings. It’s easy to understand what kind of spaces we’re talking about when we mention, for example, Žvėrynas.”
KANSO Sakalų 4, Žvėrynas, Vilnius
Yet in recent years, the name Žvėrynas has increasingly been used for new projects developed around areas like Saltoniškės. “That’s also a great place to live,” Šatikas notes, “but let’s be honest — when we say Žvėrynas, we’re not picturing Saltoniškės. Developers know this — and they still exploit it.”
He emphasizes that creating a new project in the old part of Žvėrynas is no small challenge: it requires a deep understanding and appreciation of the district’s spirit and history, as well as sensitivity to a community that has lived there for decades. New developments must integrate naturally and respectfully into the surroundings. Šatikas cites KANSO Sakalų 4 as a prime example — a project that reflects the essence of Žvėrynas both in its exterior and in its underlying philosophy. He believes that projects built on the fringes of the district — and created without careful consideration of these aspects — ultimately damage the area’s reputation and set unrealistic expectations for buyers.
According to Resolution’s CEO, this is not a phenomenon unique to Lithuania. It happens globally. In New York, for example, projects like Manhattan View evoke luxury and iconic views — but may actually be located in neighborhoods like Hell’s Kitchen, far removed from Manhattan’s elite image. In London, developments named Chelsea Gardens or Knightsbridge Views are often built outside these wealthy neighborhoods — sometimes quite far — but still leverage the names to create an illusion of luxury and high quality.
“This isn’t illegal, but it’s misleading. And it doesn’t do our sector any favors — it damages the reputation of the entire industry, not just those developers using such tactics. Once or twice disappointed, buyers begin to view the entire housing market with skepticism. That’s why we need to acknowledge this issue and deal with it — the sooner, the better,” Šatikas concludes.
