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Thinking about buying a 3-bedroom apartment in Vilnius Old Town? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Žvėrynas or Naujamiestis where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Lithuania Property Pack.
Will property prices increase in Lithuania in 2025?
Yes, property prices in Lithuania are expected to rise in 2025, driven by a combination of economic growth and increasing demand for housing.
Backed by our fresh, in-depth market analysis, we’re confident that Lithuania remains an attractive market for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the main drivers behind Lithuania’s price growth are expected to persist.
Demand, particularly in urban areas like Vilnius, continues to outpace supply, making significant price declines unlikely. Additionally, Lithuania's growing economy and improving infrastructure are attracting more buyers.
Signals pointing to a property price increase in Lithuania
Here are some factors suggesting prices could increase:
The Lithuanian economy is projected to grow steadily in 2025, boosting consumer confidence and increasing the purchasing power of potential homebuyers, which is likely to drive up property prices.
Urbanization trends continue to draw people to cities like Vilnius and Kaunas, where demand for housing is high. This urban migration is expected to sustain or increase property prices in these areas.
Government initiatives aimed at supporting first-time homebuyers and young families are expected to stimulate demand in the housing market, contributing to price increases.
Lithuania's strategic location and improving infrastructure, including transportation and digital connectivity, are attracting foreign investment, which is likely to boost the real estate market.
The rental market remains strong, with high demand for rental properties, particularly in major cities. This trend is encouraging investors to purchase properties, thereby driving up prices.
A limited supply of new housing developments, due to regulatory and land availability constraints, is expected to keep supply tight, supporting price increases.
Lithuania's growing tech sector and increasing number of startups are attracting a skilled workforce, which is likely to increase demand for housing in tech hubs, pushing prices higher.
Signals pointing to a property price decrease in Lithuania
Here are some factors suggesting prices could fall:
Potential interest rate hikes could make mortgages more expensive, reducing affordability for some buyers and potentially cooling demand.
Rising inflation and living costs may strain household budgets, leading to reduced demand for property purchases, particularly among first-time buyers.
Economic uncertainties in the broader European market could impact investor confidence and slow down the pace of property price growth in Lithuania.
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If property prices go up in Lithuania, how much would they increase by?
If real estate prices in Lithuania were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Lithuania appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Vilnius for 150,000 euros today, don't be surprised if it's priced between 154,500 and 160,500 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Lithuanian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment in Vilnius (60 sqm / 646 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Modern Apartment in Kaunas (75 sqm / 807 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
| Luxury Penthouse in Klaipėda (100 sqm / 1,076 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Studio in Šiauliai (30 sqm / 323 sqft) | €80,000 | €82,400 | €84,000 | €85,600 |
| Loft in Panevėžys (80 sqm / 861 sqft) | €180,000 | €185,400 | €189,000 | €192,600 |
| Townhouse in Alytus (150 sqm / 1,615 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
| Investment Property in Marijampolė (50 sqm / 538 sqft) | €100,000 | €103,000 | €105,000 | €107,000 |
Everything you need to know is included in our Property Pack for Lithuania
If real estate prices go up in Lithuania, which areas are likely to see the biggest increases?
Today, people who want to move to Lithuania are looking for a blend of historical charm and modern amenities, which Vilnius Old Town offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in vibrant, youthful neighborhoods, and Užupis has really become popular.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Lithuanian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Vilnius Old Town | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Naujamiestis | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Vilnius. |
| Šnipiškės | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Žvėrynas | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Antakalnis | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Užupis | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Kaunas Old Town | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Palanga | Medium-High | Its proximity to the Baltic Sea, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Klaipėda | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Trakai | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Druskininkai | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Lithuania?
In 2025, Lithuania's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in cities like Vilnius and Kaunas.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Vilnius and Klaipėda are seeing increased interest. Proximity to green spaces, schools, and convenient transport links is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In urban areas like Vilnius, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Lithuania's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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