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Lithuania's property market offers attractive opportunities for both investors and homebuyers, with apartments representing 72% of all residential transactions. Property prices in major cities like Vilnius average around €2,700 per square meter, while smaller cities like Šiauliai offer more affordable options at approximately €1,150 per square meter.
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Lithuania's residential market is dominated by apartment sales, with Vilnius commanding the highest prices and strong growth potential in coastal and urban areas.
Property prices have doubled since 2015, with recent annual growth of 3-7% and favorable mortgage conditions available for qualified buyers.
| Aspect | Details | Range/Examples |
|---|---|---|
| Most common property | Apartments (72% of sales) | Houses: 23-29% of sales |
| Highest prices | Vilnius city center | €2,700–€13,000/sqm |
| Lowest prices | Šiauliai, Panevėžys | €1,100–€1,150/sqm |
| Additional costs | Notary, registration, VAT | Total: 4-8% of purchase price |
| Mortgage terms | 15% down payment minimum | 4.5-5.5% interest rate |
| Price growth | 3-7% annually recent years | 108% growth since 2015 |
| Forecast | Steady growth expected | 3-7% next year predicted |
What types of properties are most commonly sold in Lithuania?
Apartments dominate Lithuania's residential property market, accounting for 72% of all purchase and sale transactions as of 2024.
Houses represent the second-largest category, comprising approximately 23-29% of residential transactions throughout the country. The share of house sales occasionally exceeds 30% during certain periods, particularly in suburban and rural areas where larger properties are more readily available.
Land transactions form a significant portion of the overall real estate market, with over 31,000 deals recorded in the first half of 2024 alone. However, residential land purchases specifically are less common than apartments and houses, as most buyers prefer ready-to-move properties rather than development projects.
The preference for apartments reflects Lithuania's urbanization trends and the practical needs of both local residents and foreign investors who seek lower maintenance properties in city centers.
Which cities have the highest and lowest average house prices in Lithuania?
Vilnius consistently commands the highest property prices in Lithuania, with average apartment prices reaching €2,680-€2,700 per square meter as of mid-2025.
Premium developments in central Vilnius districts can reach €3,600-€5,000 per square meter, with luxury properties in areas like the Old Town, Žvėrynas, and Užupis commanding prices between €4,500-€13,000 per square meter. Kaunas and Klaipėda follow as the second and third most expensive cities, with average apartment prices around €1,846 and €1,752 per square meter respectively.
At the opposite end of the spectrum, Šiauliai and Panevėžys offer the most affordable property prices in Lithuania. Average apartment prices in these cities typically range from €1,100-€1,150 per square meter, making them attractive options for budget-conscious buyers and investors seeking higher rental yields.
The price gap between Vilnius and smaller cities reflects differences in economic activity, employment opportunities, and infrastructure development across Lithuania's regions.
How do prices vary between city centers and suburban areas?
City center properties command premium prices compared to suburban and rural locations, with price differences typically ranging from 20-40% across Lithuania's major cities.
In Vilnius, central districts like the Old Town, Naujamiestis, and Žvėrynas represent the most expensive areas, where luxury apartments can reach €4,500-€13,000 per square meter. Moving toward suburban areas, prices decrease significantly, offering buyers substantial savings for properties located 10-15 kilometers from city centers.
Suburban areas provide attractive alternatives for families and investors, offering larger properties, parking availability, and modern amenities at considerably lower per-square-meter costs. Rural properties present the lowest prices but come with reduced demand and lower liquidity, making them suitable primarily for long-term residents rather than investment purposes.
The price variation reflects accessibility to employment centers, public transportation, cultural amenities, and urban conveniences that city center locations provide.
What are the average prices per square meter in major Lithuanian cities?
| City | Apartment (€/sqm) | House (€/sqm) |
|---|---|---|
| Vilnius | €2,646–€2,700 | €2,100–€3,800+ |
| Kaunas | €1,846 | €2,000–€3,000 |
| Klaipėda | €1,752 | €2,000–€3,000 |
| Šiauliai | €1,100–€1,150 | €1,500–€2,200 |
| Panevėžys | €1,100–€1,150 | €1,500–€2,200 |
New construction and luxury developments in central Vilnius can exceed €4,000-€5,000 per square meter, particularly in prestigious neighborhoods with historical significance or waterfront access.
What additional costs come with buying property in Lithuania?
Property purchases in Lithuania involve several mandatory fees and taxes that buyers must budget beyond the purchase price.
Notary fees represent a significant cost, typically calculated at 0.45% of the property value with a maximum cap of €6,000. Registration fees vary based on property type and value, generally ranging from 0.03-0.5% of the property value or cadastral value, with some transactions subject to flat fees between €3-€1,450.
Real estate agent commissions typically range from 1.5-3% of the purchase price, though sellers usually cover this expense. Legal fees for property transactions generally cost €300-€1,000 depending on the complexity of the purchase and legal services required.
Property transfer tax applies at 2% of the purchase price or market value (whichever is higher), though family transfers may qualify for exemptions. New properties and undeveloped land are subject to 21% VAT paid by the buyer. Annual property tax ranges from 0.5-1% for properties valued above €150,000, with higher rates for properties exceeding €1 million.
Total additional costs typically represent 4-8% of the purchase price, depending on the property type and value.
How do mortgage options work for property buyers in Lithuania?
Lithuanian banks offer mortgage financing with competitive terms for qualified borrowers, requiring a minimum down payment of 15% of the property value.
Interest rates for foreign nationals typically range from 4.5-5.5% as of mid-2025, while Lithuanian residents may qualify for slightly lower rates. Mortgage terms extend up to 30 years, providing flexibility for borrowers to manage monthly payments according to their financial capacity.
Banks require stable income documentation, good credit history, and proof that total monthly loan payments do not exceed 40% of net income. The approval process involves property valuation, income verification, and creditworthiness assessment, typically taking 2-4 weeks for completion.
Major Lithuanian banks including Luminor, Swedbank, and SEB offer mortgage products to both residents and non-residents, though foreign applicants may face additional documentation requirements and slightly higher interest rates.
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How have property prices changed over the past 5 years?
Lithuanian property prices have experienced substantial growth over the past five years, with Vilnius leading the national trend.
Since 2015, residential property prices in Vilnius have more than doubled, showing a remarkable 108% increase that reflects strong economic growth and increased investor confidence. This long-term growth trajectory has established Lithuania as an attractive real estate investment destination in the Baltic region.
During 2024, the market showed signs of stabilization after the rapid growth period, with Vilnius recording a 2.1-3% annual increase in apartment prices. Kaunas and Šiauliai experienced higher growth rates of 5-7% during the same period, indicating strong demand in secondary cities.
The national house price index rose by approximately 9.8% year-on-year through Q4 2024, demonstrating continued market strength across the country. Recent 12-month data shows apartment prices increased by 3-7% year-on-year across major cities, suggesting a sustainable growth pattern following the previous decade's rapid appreciation.
What are the predictions for Lithuanian property prices?
Property price forecasts for Lithuania indicate continued steady growth across different time horizons, though at a more moderate pace than the previous decade.
For the next 12 months through mid-2026, experts predict growth of 3-7% with market stabilization and moderate increases likely across major cities. This growth rate reflects sustainable demand balanced with improved housing supply and economic conditions.
The five-year outlook suggests continued steady appreciation, particularly in urban and coastal areas that are expected to outperform rural regions. Vilnius, Kaunas, and Klaipėda are positioned to maintain their growth momentum due to ongoing urbanization and foreign investment interest.
Long-term forecasts for the next decade anticipate sustained growth driven by urbanization trends, economic development, and foreign investment, though at a more sustainable rate than the explosive growth experienced since 2015. Coastal areas and major urban centers are expected to provide the strongest returns for property investors during this period.
What are typical purchase prices for apartments and houses?
| City | 1-Bedroom Apartment | 3-Bedroom Apartment | House (Average) |
|---|---|---|---|
| Vilnius | €70,000–€120,000 | €150,000–€300,000 | €200,000+ |
| Kaunas | €60,000–€100,000 | €120,000–€250,000 | €150,000–€250,000 |
| Klaipėda | €65,000–€110,000 | €140,000–€280,000 | €150,000–€250,000 |
| Šiauliai | €45,000–€70,000 | €80,000–€130,000 | €100,000–€180,000 |
| Panevėžys | €45,000–€70,000 | €80,000–€130,000 | €100,000–€180,000 |
These prices reflect market averages as of 2024-2025, with premium properties and luxury developments commanding significantly higher prices, particularly in Vilnius's central districts.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Lithuania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Which areas offer the best value and investment potential?
Lithuania's property market offers distinct opportunities across different price segments and investment strategies.
The most expensive areas center around Vilnius's historical and prestigious districts, including the Old Town, Žvėrynas, and Užupis, where luxury apartments can exceed €5,000-€13,000 per square meter. These areas command premium prices due to their cultural significance, architectural heritage, and proximity to business centers.
Budget-friendly options are abundant in Šiauliai, Panevėžys, and smaller towns where apartments are available for €80,000-€100,000. These locations often provide higher rental yields than major cities, making them attractive for income-focused investors.
Up-and-coming areas include Naujamiestis and Šnipiškės in Vilnius, which offer modern developments and good growth potential. Fabijoniškės presents opportunities for first-time buyers with modern amenities and reasonable prices. Coastal areas like Palanga show strong potential for tourism-related investments and short-term rental properties.
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What are the best investment strategies for different goals?
Investment strategy selection depends on your primary objective and risk tolerance in the Lithuanian property market.
For buyers planning to live in Lithuania, central Vilnius offers prestige and amenities, while Fabijoniškės provides modern housing at affordable prices. Antakalnis appeals to families seeking green spaces and a peaceful environment with good access to the city center.
Long-term rental investors should focus on Naujamiestis and Šnipiškės areas in Vilnius, which attract young professionals and maintain high rental demand. Major city centers consistently provide stable rental income due to employment concentrations and urban amenities.
Short-term rental opportunities thrive in Vilnius Old Town, which attracts tourists year-round, and coastal towns like Palanga and Neringa that benefit from seasonal tourism. These locations can generate higher yields during peak tourism periods but require active management.
Resale profit strategies work best in urban and coastal areas with strong growth potential. While smaller towns can offer high returns, they typically have lower liquidity and longer selling periods. Urban properties provide better exit strategies and market stability for profit-focused investors.
How do Lithuanian property prices compare to other European cities?
Lithuania's property prices remain significantly more affordable than Western European capitals while offering attractive investment returns.
Vilnius's average prices of €2,700 per square meter compare favorably to cities like Lisbon (€3,000-€4,000/sqm) but remain much lower than Berlin (€5,000-€7,000/sqm) or Paris (€10,000+/sqm). This price differential creates opportunities for investors seeking European exposure at accessible price points.
The affordability advantage extends to rental yields, where Lithuania offers 4-8% returns compared to 2-4% typical in major Western European cities. This yield premium compensates investors for the smaller market size and provides attractive cash flow potential.
Lithuania's EU membership, Euro currency adoption, and stable political environment provide similar legal protections and market transparency as other European markets, but at significantly lower entry costs. This combination makes Lithuanian real estate particularly attractive for diversification and growth-oriented investment strategies.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Lithuania's property market presents compelling opportunities for both residential buyers and investors, with apartment-dominated sales, strong price growth in urban centers, and attractive yields compared to Western Europe.
The combination of EU membership, stable economic growth, and relatively affordable prices positions Lithuania as an emerging real estate investment destination with solid fundamentals and growth potential.
Sources
- Realting - Lithuanian Real Estate Market Analytics
- True Lithuania - Lithuanian Home Types
- Ober Haus - Housing Market Recovery Analysis
- Global Property Guide - Lithuania Price History
- InvestRopa - Lithuania Area Analysis
- Luminor Bank - Housing Loan Information
- Trading Economics - Lithuania Housing Index
- InvestRopa - Lithuania Price Forecasts
- Global Property Guide - Lithuania Rental Yields
- Statista - EU Residential Prices