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As we reach mid-2025, Lithuania's property market continues its upward trajectory with prices rising moderately across all major cities.
The Lithuanian residential market has shown remarkable resilience, with apartment prices in Vilnius reaching €2,680 per square meter as of March 2025, while other major cities like Kaunas (€1,846/sqm) and Klaipėda (€1,752/sqm) also experience steady growth.
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Property prices in Lithuania are increasing at a moderate pace of 5-7% annually as of June 2025, driven by economic growth, urbanization, and high demand for modern housing.
The market remains attractive for investors with rental yields averaging 5-6% in Vilnius, while no signs of overheating are present despite years of strong growth.
| Indicator | Current Status | Trend |
|---|---|---|
| Average Price Growth (2025) | 5-7% annually | Moderate increase |
| Vilnius Price/sqm | €2,680 | Rising |
| Rental Yields | 5-6% (Vilnius) | Stable |
| GDP Growth Forecast | 2.8% (2025) | Positive |
| Market Activity | Increasing transactions | Recovery phase |
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.
What are the current property prices in Lithuania as of June 2025?
Property prices in Lithuania vary significantly between cities, with Vilnius commanding the highest prices at €2,680 per square meter for apartments.
The capital city remains the most expensive market in Lithuania, reflecting its status as the economic and cultural center. Other major cities show more affordable options, with Kaunas averaging €1,846/sqm, Klaipėda at €1,752/sqm, Šiauliai at €1,172/sqm, and Panevėžys at €1,149/sqm.
New developments and luxury properties in prime locations like Vilnius Old Town can reach significantly higher prices, with some new builds averaging €3,318/sqm. These premium properties attract both local buyers and international investors seeking quality real estate in the Baltic region.
Commercial properties also show strong fundamentals, with retail rents in major shopping centers ranging from €15-40/sqm for medium units and office rents in modern business centers typically between €13-18/sqm in Vilnius.
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How much have property prices increased in Lithuania recently?
Lithuania's property market has experienced an 8.9% year-on-year increase as of September 2024, showing robust growth momentum.
In the five largest cities, annual apartment price growth has varied, with Panevėžys leading at 6.7%, followed by Šiauliai at 6.4%, Klaipėda at 5.4%, Kaunas at 4.1%, and Vilnius at 3.3%. This represents a moderation from the double-digit growth rates seen in previous years.
The market has stabilized after experiencing sharp increases during 2021-2022, when annual price growth exceeded 20% in some areas. This transition to more sustainable growth rates indicates a maturing market that's finding its equilibrium.
As of June 2025, the trend continues with moderate but steady appreciation, supported by strong economic fundamentals and continued demand for quality housing.
| City | Annual Price Growth | Current Price/sqm |
|---|---|---|
| Panevėžys | 6.7% | €1,149 |
| Šiauliai | 6.4% | €1,172 |
| Klaipėda | 5.4% | €1,752 |
| Kaunas | 4.1% | €1,846 |
| Vilnius | 3.3% | €2,680 |
Where did property prices increase the most in Lithuania?
Panevėžys and Šiauliai have emerged as the fastest-growing markets in Lithuania, with annual price increases of 6.7% and 6.4% respectively.
These smaller cities are attracting buyers seeking more affordable alternatives to the capital, while still offering good infrastructure and employment opportunities. The price growth in these markets reflects increasing demand from both local residents and investors recognizing the value proposition.
Within Vilnius, specific neighborhoods show above-average appreciation. The Old Town and trendy areas like Užupis continue to see strong demand, particularly for energy-efficient apartments and properties with modern amenities. New developments in these prime locations often command premium prices.
Suburban areas near major cities are also experiencing notable growth, driven by families seeking larger living spaces with outdoor areas. This trend has accelerated post-pandemic as remote work becomes more common.
The coastal city of Klaipėda maintains steady growth at 5.4%, benefiting from its port economy and increasing popularity among both residents and tourists.
Which property types are seeing the biggest price surge in Lithuania?
Energy-efficient and tech-equipped apartments are experiencing the strongest price appreciation in Lithuania's property market.
These modern properties appeal particularly to young professionals and remote workers who value smart home features, efficient heating systems, and high-speed internet connectivity. Developers are responding to this demand by incorporating advanced technology and sustainable features in new projects.
Family-sized apartments in suburban areas represent another hot segment, with properties featuring outdoor spaces like balconies, terraces, or access to gardens commanding premium prices. The shift toward remote work has intensified demand for homes that offer both living and working spaces.
New builds in urban centers, particularly in Vilnius, saw a median price increase of 6.7% in 2024, outpacing the broader market. Smaller apartments continue to dominate the primary market due to their affordability and strong investor demand.
Properties with A+ or A energy efficiency ratings can command price premiums of 10-15% compared to older, less efficient buildings, reflecting buyers' increasing awareness of long-term operating costs.
What are the property price forecasts for Lithuania in 2026?
Analysts project continued moderate growth of 5-7% annually for Lithuania's property market through 2026.
This forecast is underpinned by several positive factors including projected GDP growth of 3.1% in 2026, continued urbanization, and sustained demand for modern housing. The European Commission and other economic institutions expect Lithuania's economy to maintain steady expansion, supporting property values.
In specific terms, a €200,000 apartment in Vilnius today could be worth between €210,000 and €214,000 by the end of 2026, based on current growth projections. However, price appreciation may vary significantly by location and property type.
Infrastructure improvements, including the Rail Baltica project connecting the Baltic states to the European rail network, are expected to boost property values in areas near new transport links. This major infrastructure investment will enhance Lithuania's connectivity and attractiveness to investors.
It's something we develop in our Lithuania property pack.
What economic factors are driving Lithuania's property prices in 2025?
Lithuania's property market benefits from solid economic fundamentals, with GDP projected to grow 2.8% in 2025.
Inflation has moderated significantly to 4.1% as of March 2025, down from the double-digit rates of previous years, improving affordability for buyers. The European Central Bank's monetary policy has led to declining EURIBOR rates, making mortgages more accessible.
Average wages in Lithuania are rising faster than property prices, enhancing affordability for local buyers. This positive wage-to-price ratio supports sustainable demand and reduces the risk of a market bubble.
The unemployment rate remains manageable at 6.9%, indicating a healthy labor market that supports housing demand. Strong employment in the technology and services sectors, particularly in Vilnius, drives demand for quality urban housing.
| Economic Indicator | 2025 Value | Impact on Property Market |
|---|---|---|
| GDP Growth | 2.8% | Positive - supports demand |
| Inflation Rate | 4.1% | Neutral - moderating |
| Unemployment | 6.9% | Positive - stable employment |
| Wage Growth | Above property prices | Very positive - improves affordability |
| Interest Rates | Declining | Positive - cheaper mortgages |
How are government policies affecting Lithuania's property market in 2025?
Tax reforms proposed for 2026 include significant changes that could impact the property market, including a new 0.2% tariff for commercial real estate.
The government is considering more frequent property revaluations and adjustments to real estate taxation structures. These changes aim to increase public revenues while ensuring fair property taxation across different market segments.
Lithuania is contemplating restrictions on property purchases by Russian citizens near strategic facilities, though general foreign ownership remains unrestricted for most buyers. EU citizens continue to enjoy full property rights, while non-EU buyers face limitations only on agricultural and forest land.
Public pressure for affordable housing solutions is mounting, though as of mid-2025, no major supply-side policies have been enacted. The government faces the challenge of balancing market dynamics with housing affordability concerns.
Immigration quotas were reduced in 2025, but highly qualified professionals remain prioritized for work permits, maintaining demand from international buyers in the technology and business sectors.
What impact has the post-Ukraine war period had on Lithuania's property market?
The Ukraine conflict initially disrupted Lithuania's property market through supply chain issues and increased construction costs.
An influx of Ukrainian refugees tightened the rental market, particularly in major cities, leading to increased demand for affordable housing options. This sudden population increase put upward pressure on both rental and purchase prices in the short term.
As the region stabilizes in 2025, Lithuania's property market has rebounded with increased activity in both sales and rentals. Vilnius and Kaunas have been particular beneficiaries of this recovery, attracting both returning confidence and new investment.
Construction material costs have begun to normalize after the initial shock, though they remain elevated compared to pre-conflict levels. This has contributed to higher prices for new developments but hasn't deterred buyer interest.
The geopolitical situation has paradoxically increased Lithuania's attractiveness to some international investors who view it as a stable EU member state with strong NATO protection.
How strong is demand from foreign buyers and digital nomads in Lithuania?
Foreign buyer interest in Lithuania continues to grow, driven by attractive rental yields of 5-6% in Vilnius and the country's tech-friendly environment.
Vilnius has emerged as a significant hub for digital nomads and remote workers, attracted by its relatively low cost of living compared to Western European capitals, excellent internet infrastructure, and vibrant cultural scene. This demographic particularly seeks modern, well-connected apartments in central locations.
International students contribute significantly to rental demand, with Lithuania's universities attracting increasing numbers of foreign students. This creates consistent demand for student accommodation and smaller apartments near educational institutions.
The technology sector's growth has brought highly skilled professionals from across Europe and beyond, who often transition from renting to buying as they establish themselves in Lithuania. These buyers typically seek quality properties in prime urban locations.
Despite reduced immigration quotas in 2025, the focus on attracting qualified professionals ensures continued demand from this lucrative market segment.
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How does Lithuania's property market compare to neighboring Baltic countries?
Lithuania offers competitive advantages compared to its Baltic neighbors, with property price growth of 8.9% in 2024 and projected 5-7% for 2025.
Among the Baltic states, Lithuania provides some of the highest rental yields, with Vilnius averaging 5-6%, making it particularly attractive for buy-to-let investors. This compares favorably to yields in many Western European capitals.
The long-term growth trajectory is impressive, with Lithuanian house prices increasing by 187% since 2015, demonstrating the market's strong fundamentals and continued investor confidence.
Latvia and Estonia show more modest growth rates, with annual increases of 4.4% and 3.1% respectively, though Estonia has seen the highest cumulative growth of 228% since 2010.
| Country | 2024-2025 Annual Growth | 5-Year Trend | Rental Yields (Capital) | Foreign Buyer Restrictions |
|---|---|---|---|---|
| Lithuania | 8.9% (2024), 5-7% (2025 est.) | +187% (since 2010) | 5-6% (Vilnius) | None (except Russians near strategic sites) |
| Latvia | 4.4% | +153% | 7%+ (Riga) | None |
| Estonia | 3.1% | +228% | 4.5% (Tallinn) | None |
| Poland | 9.3% | >100% | 4-5% (Warsaw) | None |
What are the long-term property price trends in Lithuania?
Lithuania's property market has demonstrated remarkable long-term growth, with prices more than doubling since 2015.
The average annual growth rate of 5.8% over the past decade reflects sustained demand and economic development. A 100 square meter apartment that cost €160,000 five years ago now sells for approximately €254,000, representing substantial capital appreciation for early investors.
Looking ahead 10-20 years, continued urbanization and demographic shifts are expected to support steady price growth, though at a more moderate pace than the exceptional growth of the last decade. Infrastructure projects like Rail Baltica will create new growth corridors and enhance property values along transport routes.
The market's evolution toward sustainable, energy-efficient properties aligns with EU environmental goals and changing buyer preferences. Properties meeting high environmental standards are likely to see stronger appreciation over the long term.
Lithuania's EU membership and stable political environment provide a solid foundation for long-term property investment, with the market expected to mature gradually while maintaining attractive returns for patient investors.
Are there any signs of a property bubble in Lithuania?
As of June 2025, there are no strong indicators of a property bubble or market overheating in Lithuania.
Price growth has moderated from the double-digit rates of 2021-2022 to a more sustainable 5-7% annually, indicating healthy market adjustment rather than speculative excess. This cooling represents a natural market cycle rather than a crash risk.
Housing affordability is actually improving due to rising wages outpacing property price growth and falling interest rates making mortgages more accessible. The healthy balance between supply and demand, particularly in urban areas, suggests market stability.
The average price-to-income ratio remains within reasonable bounds compared to many European capitals, though Vilnius faces some affordability pressures. Banks maintain prudent lending standards, preventing the excessive leverage that often precedes market corrections.
It's something we develop in our Lithuania property pack.
We made this infographic to show you how property prices in Lithuania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What are the best areas for property investment in Lithuania in 2025?
Vilnius Old Town and Užupis continue to offer premium investment opportunities with strong capital appreciation potential.
These historic yet vibrant neighborhoods attract both tourists and long-term residents, ensuring consistent rental demand. Properties here command premium prices but also deliver superior returns through both rental income and capital growth.
Emerging suburban areas around Vilnius and Kaunas present opportunities for investors seeking value. These locations benefit from improving infrastructure, new commercial developments, and growing demand from families seeking more space.
The technology corridor in Vilnius, home to numerous startups and international companies, offers strong rental potential. Modern apartments near business centers attract well-paid professionals and deliver reliable rental income.
Coastal properties in Klaipėda and resort areas provide seasonal rental opportunities alongside steady appreciation. The development of tourism infrastructure and increasing domestic travel support this market segment.
- Vilnius Old Town - Premium location with tourist and residential demand
- Užupis, Vilnius - Artistic quarter with strong appreciation potential
- Šnipiškės, Vilnius - Business district with modern developments
- Kaunas city center - Second city with growing tech sector
- Klaipėda coastal areas - Port city with tourism potential
What mortgage rates are currently available in Lithuania?
Mortgage rates in Lithuania have become more favorable in 2025 as EURIBOR rates decline from their recent peaks.
Banks typically offer variable rates tied to EURIBOR plus a margin of 1.5-2.5%, depending on the borrower's profile and down payment. Fixed-rate mortgages are also available, though at slightly higher rates, providing certainty for risk-averse buyers.
First-time buyers can often access special programs with reduced rates or government support, making property ownership more accessible. The typical down payment requirement is 15-20% of the property value, though some banks may accept 10% for qualified buyers.
The improving rate environment has boosted mortgage applications and supported property transaction volumes. Banks report healthy lending activity with maintained credit standards, indicating a balanced and sustainable market.
Foreign buyers can access mortgages from Lithuanian banks, though terms may vary and typically require higher down payments of 30-40%.
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 continues its upward trajectory in 2025, with moderate price increases of 5-7% annually expected to continue. The combination of economic growth, urbanization, and strong fundamentals supports this positive outlook.
For investors and homebuyers, Lithuania offers an attractive mix of affordability, growth potential, and stability within the EU framework. While prices are rising, the pace has moderated to sustainable levels, reducing bubble risks while maintaining healthy returns. The answer is clear: Yes, property prices in Lithuania are going up.
Sources
- Ober-Haus: Housing market analysis
- Made in Vilnius: Real Estate Market Updates
- InReal: Lithuania Real Estate Market Reports
- Trading Economics: Lithuania House Price Index
- Global Property Guide: Lithuania Price History
- Investropa: Lithuania Real Estate Market Analysis
- Eurostat: European Housing Statistics
- Bank of Lithuania: Economic Indicators
- OECD: Lithuania Economic Surveys
- IMF: Lithuania Economic Outlook
- Statistics Lithuania: Official Statistics Portal