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Deciding between a new-build apartment and an older Soviet-era unit in Lithuania involves significant cost and lifestyle differences.
New apartments in Vilnius and Kaunas cost about 27% more per square meter but offer lower monthly heating bills and modern amenities, while older apartments provide central locations at lower purchase prices but come with higher maintenance costs and potential renovation surprises.
If you want to go deeper, you can check our pack of documents related to the real estate market in Lithuania, based on reliable facts and data, not opinions or rumors.
New-build apartments in Lithuanian cities cost approximately 27% more upfront but deliver significant savings on heating and maintenance costs over time.
While older apartments offer prime central locations and immediate move-in availability, they often require substantial renovation investments and carry higher ongoing operational expenses.
| Aspect | New Apartments | Old Apartments |
|---|---|---|
| Price per sqm (Vilnius) | ~€3,318/sqm | ~€2,614/sqm |
| Monthly maintenance | €1.00-€1.50/sqm | €1.50-€2.50/sqm |
| Winter heating (85sqm) | €30-€60/month | €80-€150/month |
| Annual appreciation | 6-7% | 2-3% |
| VAT | 21% (new builds) | 0% (resale) |
| Location | Outer districts | Central areas |
| Rental yield | 5-7% | 6-8% |
How much more expensive per square meter is a new-build apartment in Vilnius or Kaunas compared to an older one in the same area?
New-build apartments in Vilnius cost approximately €3,318 per square meter as of September 2025, while older apartments in similar neighborhoods average €2,614 per square meter.
This represents a 27% price premium for new construction in the Lithuanian capital. The price gap reflects the higher construction standards, energy efficiency ratings, and modern amenities that new developments must meet under current EU building regulations.
In Kaunas, the second-largest city, new apartments typically range from €2,200 to €2,500 per square meter, compared to €1,790 to €1,900 per square meter for older units. This creates a similar 20-30% premium for new construction, though absolute prices remain lower than in Vilnius.
The premium exists even when comparing properties in identical neighborhoods, as new builds must comply with stricter energy efficiency standards and include modern infrastructure like fiber internet, advanced heating systems, and updated electrical wiring.
It's something we develop in our Lithuania property pack.
What are the typical monthly maintenance and heating costs in a new apartment block compared to a Soviet-era building?
New apartment blocks charge maintenance fees ranging from €1.00 to €1.50 per square meter monthly, while Soviet-era buildings typically cost €1.50 to €2.50 per square meter for building maintenance.
The heating cost difference is even more dramatic due to energy efficiency ratings. A typical 85-square-meter new apartment with A+ energy classification costs just €30 to €60 monthly for winter heating, thanks to superior insulation and modern heating systems.
Soviet-era apartments without proper insulation upgrades can see heating bills reach €80 to €150 monthly during winter months. The poor thermal performance of older buildings means residents pay significantly more to maintain comfortable indoor temperatures.
Beyond heating, older buildings often require residents to contribute to major maintenance projects like facade repairs, roof replacements, or elevator modernization. These special assessments can cost individual apartment owners several thousand euros when building-wide renovations become necessary.
How do property taxes and potential renovation fees differ between new apartments and old ones in Lithuania?
Lithuania applies an annual property tax of 0.3% to 3% on residential property values exceeding €150,000, affecting both new and old apartments equally based on their assessed market value.
The significant difference lies in renovation fees and VAT treatment. New apartment purchases include 21% VAT in the purchase price, while older apartment sales are VAT-exempt as resale transactions.
Older apartments carry substantial renovation risk through mandatory building improvement fees. Residents can be legally required to pay thousands of euros for facade renovations, roof repairs, or structural upgrades when building management companies initiate major projects.
New buildings typically won't require major renovations for 15-20 years, protecting owners from unexpected large expenses. However, the 21% VAT on new purchases represents a significant upfront tax burden that doesn't apply to older properties.
What's the expected resale value and appreciation rate of a new apartment versus an older one over the next 10 years?
New apartments in Lithuania demonstrate stronger appreciation potential, with historical annual growth rates of 6-7% compared to 2-3% for older apartments as of September 2025.
| Timeframe | New Apartment Value Growth | Old Apartment Value Growth |
|---|---|---|
| 1 Year | 6-7% annually | 2-3% annually |
| 5 Years | 34-40% total | 10-16% total |
| 10 Years | 79-97% total | 22-34% total |
| Market liquidity | Faster sales, smaller discounts | Longer marketing time |
| Buyer demand | High for energy-efficient units | Price-sensitive buyers only |
The stronger performance of new apartments reflects growing buyer preference for energy-efficient housing and EU regulatory trends favoring sustainable construction. Modern apartments also maintain better condition over time, requiring less maintenance investment from future owners.
Market liquidity strongly favors newer properties, with energy-efficient apartments selling faster and at prices closer to asking values. Older apartments often require price reductions and longer marketing periods to attract buyers.
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How reliable is the construction quality of recent Lithuanian developments compared to buildings from the 1970s–1990s?
Recent Lithuanian developments follow strict EU construction standards and energy efficiency codes, delivering superior sound insulation, structural integrity, and thermal performance compared to Soviet-era construction.
Modern buildings must meet current seismic, fire safety, and accessibility standards that didn't exist during the 1970s-1990s construction period. New developments also include fiber internet infrastructure, modern electrical systems rated for contemporary appliance loads, and advanced ventilation systems.
However, some generic residential projects have experienced quality control issues with rushed construction timelines and cost-cutting measures. Buyers should research developer track records and request detailed warranty information before purchasing.
Soviet-era buildings suffer from common problems including crumbling concrete facades, outdated electrical wiring that may not handle modern appliances safely, and lack of proper insulation. Many older buildings also have structural issues that require expensive repairs as they approach 40-50 years of age.
It's something we develop in our Lithuania property pack.
What kind of government regulations or incentives exist in Lithuania for buying energy-efficient new apartments?
Lithuania offers partial government support for large-scale building insulation and renovation projects, though these programs primarily target existing old building retrofits rather than new apartment purchases.
Many Lithuanian municipalities actively encourage A and A+ energy class construction through streamlined permitting processes and reduced bureaucratic requirements for developers meeting high energy efficiency standards.
The central government provides EU-funded support programs for multi-apartment building renovation, helping older building owners improve energy efficiency. However, individual buyers of new energy-efficient apartments don't receive direct purchase incentives or tax credits.
Banking regulations favor energy-efficient properties, with financial institutions offering better mortgage terms and lower interest rates for A+ rated apartments compared to older, less efficient units.
How much higher are the utility bills in an older apartment without modern insulation compared to a new A+ energy class unit?
Older Lithuanian apartments without modern insulation typically cost €150 to €250 monthly for utilities during winter months, while new A+ energy class units average €85 to €120 monthly for the same 85-square-meter space.
The dramatic difference stems from thermal performance gaps between construction eras. Soviet-era buildings often lack wall insulation, have single-pane windows, and use inefficient communal heating systems that waste significant energy.
New A+ apartments feature triple-glazed windows, comprehensive wall and roof insulation, and individual heating controls that allow residents to optimize energy consumption based on actual usage patterns rather than building-wide heating schedules.
Summer cooling costs also differ significantly, as new apartments maintain comfortable temperatures with minimal air conditioning due to superior insulation, while older units require extensive cooling to combat heat gain through poorly insulated walls and windows.
What's the average rental yield difference between a freshly built apartment and an older one in the same Lithuanian neighborhood?
New apartments in Lithuanian cities generate gross rental yields of approximately 5-7% in Vilnius and slightly lower rates in Kaunas, as tenants pay premium rents for modern amenities and energy efficiency.
Older apartments in well-located blocks can achieve 6-8% rental yields due to their lower purchase prices, though these properties often experience higher vacancy rates and require more frequent maintenance between tenants.
The rental market shows strong tenant preference for energy-efficient apartments, particularly among international professionals and young Lithuanian families who prioritize lower utility costs and modern living standards over saving on rent.
New apartments command rent premiums of 15-25% compared to older units in the same neighborhood, but the higher purchase prices often offset this advantage in yield calculations. However, new apartments typically maintain consistent occupancy rates and attract longer-term tenants.
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.
What additional upfront costs should I expect with a new build versus buying an older apartment that's already equipped?
New apartment purchases in Lithuania include 21% VAT in the total price, while older apartment sales are exempt from VAT as resale transactions.
New builds typically deliver in "white box" condition, requiring buyers to budget €500 to €800 per square meter for complete finishing including flooring, kitchen installation, bathroom fixtures, and appliances.
Older apartments usually come fully equipped with existing kitchens, flooring, and appliances, allowing immediate occupancy without additional finishing costs. However, buyers should budget for potential hidden renovation needs that may emerge after purchase.
1. **New apartment additional costs:** - 21% VAT included in purchase price - Flooring installation (€30-50/sqm) - Kitchen design and installation (€8,000-15,000) - Bathroom finishing (€3,000-6,000) - Interior doors and trim (€2,000-4,000) - Appliance package (€3,000-8,000) 2. **Older apartment potential costs:** - No VAT on purchase - Immediate move-in possible - Potential electrical upgrades needed - Plumbing system updates may be required - Heating system improvements for efficiencyHow easy is it to get a mortgage on an old apartment in Lithuania compared to a new one, and how do banks view the risks?
Lithuanian banks demonstrate greater willingness to finance new and energy-efficient apartments, offering better interest rates and loan terms due to lower perceived risk and stronger collateral value.
New apartments typically qualify for loan-to-value ratios up to 85-90%, while older apartments, particularly those built before 1990 or lacking recent renovations, may require higher down payments with LTV ratios limited to 70-80%.
Banks view older buildings as higher risk due to potential structural issues, outdated infrastructure, and uncertainty about future major renovation costs that could affect property values. Properties in buildings scheduled for major renovations may face financing restrictions.
Energy-efficient new apartments often qualify for preferential "green mortgage" programs with reduced interest rates, as banks recognize these properties maintain value better and attract stronger rental demand if needed for foreclosure situations.
What are the typical waiting times and risks with new developments still under construction compared to buying an existing old apartment?
New development purchases typically require 6 to 24 months waiting time from contract signing to completion, with construction delays creating potential risks for buyers who need immediate housing.
Off-plan purchases carry risks including delayed handover dates, possible construction quality issues not apparent until completion, and developer financial difficulties that could halt projects mid-construction. Buyer funds are usually secured in escrow accounts until project completion.
Existing older apartments offer immediate ownership transfer and occupancy, eliminating construction timing risks and allowing buyers to inspect the actual property condition before purchase rather than relying on developer promises.
Market conditions can change significantly during new build waiting periods, potentially affecting the property's value at completion compared to purchase contract prices. Older apartment purchases complete within 30-60 days with minimal timing uncertainty.
It's something we develop in our Lithuania property pack.
How do location choices differ — are most new apartments built on the outskirts of Vilnius or Kaunas, while older ones are in central neighborhoods?
New apartment developments concentrate primarily in outer districts of Vilnius such as Pašilaičiai, Pilaitė, and Pažėrai, where land costs allow profitable construction of mid-range housing projects.
Older Soviet-era and early post-independence apartments cluster in central and semi-central areas including Žirmūnai, Šnipiškės, and Naujamiestis, providing superior access to city amenities, public transportation, and employment centers.
Some luxury new construction occurs as infill projects in central Vilnius, but these developments target high-end buyers with prices significantly above average new build costs. Most affordable new construction happens in peripheral areas with longer commute times.
In Kaunas, the pattern repeats with new developments in Aleksotas and other outer districts, while older apartments occupy prime central locations near the historic Old Town and main commercial areas. The location trade-off between new amenities and central convenience represents a key decision factor for buyers.
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.
The choice between new and old apartments in Lithuania ultimately depends on your priorities and financial situation.
New builds offer modern living standards and lower operating costs but require higher upfront investment and often compromise on location, while older apartments provide central locations and immediate availability at lower purchase prices but come with higher maintenance costs and renovation risks.