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Case Studies Vilnius Old Town: Užupis – Paupys Area Case study
2.2. Why and how the area declined

Since the post WW 2 period Paupys area was turned into one of industrial and industry serving zones of the city. Factories of the electric register equipment “Skaiteks”, appliance chemistry and leather treatment were found in the area. Textile and canned goods production plants were built in Užupis. Most of the dwellings in Užupis and Paupys get adopted for workers apartments.
In middle 80’s when Soviet Union’s economy appeared going worse many of the factories were forced to diminish their production capacities. Since then number of unemployed in started to increase in the area, with the consequent growth of social tensions and dereliction of housing stock. In late 80’s with the collapse of the Soviet Union industries were nearly stopped. Since then already being in a bad shape the social situation and the condition of the built stock in the area gradually get worse and in early 90’s became among those the worst in the entire city.
In 1992-1995 economy of the country was gradually reviving and social situation get better. But the dwelling, due to poverty of owners were not maintained or repaired since the WW2. Also most of the industrial facilities left without maintenance and use since late 80’s. Real estate market became very active in Vilnius Old Town at that time. The Old Town became attractive and fashionable for economically advanced people. Increase of the demand for the real estate in the Old Town was one of the highest in the city. Užupis due to a much dilapidated urban environment, bad services and unattractive social environment was not of the real estate market interest until 1995. Because of worse state of buildings and infrastructure prices as well as demand for the real estate were much lower here than in other parts of the Old Town.
However, fascinating and romantic character of the area and low real estate prices became a reason for coming here of a new generation of middle social class residents. Actors, painters, architects, students started to acquire flats in Užupis-Paupys in 1994 -1997. This young, dynamic and optimist generation of Užupis-Paupys created a very positive magnetism of the area. Since then Užupis got a name of Vilnius "Monte Parnasse” and became one of the most socially active parts of the Old Town. Various performances, alternative stage fashion exhibitions, celebration of traditional local festivities organised by new local residents became a tradition just in two - three years. Older generation was not ignored by new comers and any conflicts between them didn’t appear. Some of those who lived in Užupis for many years met this change of the character of their living space friendly and with tolerance mixed with passive ignorance. However, majority of older residents took a chance to sell their flats for a “good price” and to moved to a new concrete multi-storey suburb housing of nineties with all the modern infrastructure services.

Panorama of Paupys ponds park with picturesque urban image of Užupis and Vilnius Old Town behind 2.1. Historic overview and general preconditions 3. REGENERATION OF THE AREA.
3.1. Why and when was the area chosen
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